Slash your labor costs using a POS with these 6 tips

Restaurant businesses strive to increase their revenue in a competitive market where cost of labour is consistently rising. It’s been proven that the best tactic to controlling your profit margin is monitoring labor costs. So, with it being such a crucial cost to running a successful restaurant how can we manage its effect on business? By putting your Point of Sale to work that’s how.

Something to note is that the easiest way of determining what to spend on labor is dividing your payroll by the sales over the same period. Your labor costs should account for less then 20% anything above that is too high.

We’ve put together some useful tips on how your POS can help keep that cost below the magic number.


All business owners know that anything over 40hrs per week is considered overtime, which means time and a half of employees hourly pay. To help reduce this you should consider using more of your part-time employees or hiring temporary workers. Your Point of Sale System can notify you when employees are reaching there 40hr work week. Make sure you are also having managers approve shift changes, because these can sneakily take someones hours well over 40.


Managers can use the POS system to automatically generate schedules, purchase orders, or to manage inventory, freeing up time to perform other tasks. Which leads us into the below.


This day and age your staff should be able to do more then one thing. Think about cross-training your staff so they are able to handle other jobs that need filling as necessary. Your restaurant is able to focus more on keeping the number of workers needed in a given day low. You can use your POS to check data on whose working what type of shifts on what days and how effective they are. When the prep cooks are able to operate the grill and the hosts can act as back-up servers, you eliminate the need for a specialized, diverse staff. The beauty of this is that it maintains the same level of production quality your restaurant is known for without spending money on unnecessary labour. 


If your restaurant has been running for awhile- you know when your busy and when your not. Your POS system can provide data that will help predict high- and low-traffic times at your restaurant, so you can schedule the right number of employees. So be sure to these measurements as a benchmark for your staffing. Only schedule as many people as necessary, don’t attempt to account for any unforeseen consequences as that’s ineffective managing and will only increase labour costs in the end.


Point of Sale kiosks at counters or tables will enable your customers to place orders and complete payment transactions, reducing the need for staff to assist them.


If you’re a quick service restaurant you can encourage your customers to place there orders online using a mobile app. This will decrease the need for labor to take orders for delivery or take-out and will help increase order accuracy.

Cost of labor will continue to rise, so making sure you manage your will always increase, so managing your staffing in a way that can control costs is the most important way to run a profitable business.

Let PointOS go to work for you and help reduce these costs.

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See you next week!

Your devoted hostess,


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