As compensation laws change, operators face new cost challenges

The recent news that the Department of Labor is increasing compensation thresholds for overtime eligibility as of July 1 means that managing costs in ways that are acceptable to guests will continue to challenge operators. “This rule will exponentially increase operating costs for small business restaurant owners who are trying desperately to maintain menu prices for their customers," said Sean Kennedy, executive vice president of public affairs for the National Restaurant Association. "And because DOL created a one-size-fits all rule based on national income data, rather than regional data, this change is going to disproportionately impact restaurant owners in the South and Midwest.” On an ongoing basis, it seems restaurant operators will need to find new ways to run as leanly as possible. Are there areas of your business where waste is lurking? Could you make adjustments to your hours/staffing/menu/service model that help you maximize your efficiency or generate new streams of income? Could automation ease the load on your team, allowing you to streamline tasks or even trim the number of people required during a shift? Could you create a staff contest to generate ideas to manage costs? Talk to Team Four if you need guidance on how you can help your business operate as efficiently as possible amid ongoing cost pressures.