Managing the cost of wage changes

For years, restaurant operators in many states have faced the prospect of ballot initiatives aimed at raising the minimum wage and eliminating the tip credit. This year could be especially eventful. Wage-related ballot measures are planned in Michigan, Arizona, Ohio, Massachusetts and Connecticut, and are pending in a number of additional states. (Recently passed measures have strong potential impacts: The one passed in Washington, D.C. in 2022 requires business owners to eliminate the tip credit and raise service employees’ wages from $5.35 an hour to $16.10 by 2027. Sean Kennedy of the National Restaurant Association said the D.C. measure could have such consequences as reduced restaurant workforces, higher menu prices or added surcharges, and fewer restaurant openings – and similar results are likely happening elsewhere too.) For restaurant operators struggling to eke out a profit, such efforts can ignite a scramble to identify places to shave costs. At a time when restaurant tech is making it possible to scrutinize expenses, are you using the tools at your disposal to identify and eliminate any hidden waste and the costs that result from it? Analyze your labor costs per hour across your business to ensure you understand how they compare to your other expenses and overall revenue. Where can you make adjustments to scheduling to ensure that your staffing closely reflects the ups and downs of your traffic? There may also be opportunities to train staff on additional tasks so that the people you have on board are ready to handle a range of responsibilities and don’t have unnecessary lulls during a shift. This can feed into their development as well, which can help you better manage turnover – another regular expense you may be able to take steps to reduce. Finally, if you have any manual processes in your front and back of house, flag the ones that you can automate or delegate to tech-based tools. This will lighten the load on your staff too.