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Labor Cost Management

Lower your labor costs to drive profitability

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Lower your labor costs by 2%+


Operators' top strategies for reducing labor costs center on employee training and retention and improving scheduling processes, according to the 2023 Restaurant Operations Report

Get complete control of your labor expenses and achieve better cost management with a smart scheduling platform. Crunchtime aligns your staffing levels with customer traffic patterns and sales trends to help you avoid under- or over-staffing, while ensuring optimal coverage for efficient operations. 

Avoid unnecessary labor costs during slower times

If sales are lower than expected, the Crunchtime dashboard will reflect this variance so your manager can take action and adjust the schedule. This real-time data helps keep your actual-to-earned hours variance close to zero. Managers can proactively respond to the restaurant's daily sales by calling in extra staff or sending people home as needed.

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Leverage insightful labor reports 

Make smarter decisions on the go with real-time visibility into your labor data. Proactively monitor and manage employee hours, labor expenses, productivity and more. With a clear understanding of your key labor metrics, you can quickly identify and address any issues that may impact your bottom line and optimize your operations for maximum profitability.

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Get real-time alerts for potential schedule issues

Our intelligent system automatically checks your schedules for potential issues like overtime violations or missed break requirements during the shift. With real-time alerts and notifications, you can quickly identify and address any concerns, preventing unnecessary penalties and higher labor costs.  

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Stay compliant and avoid legal penalties

Our innovative scheduling software is built to comply with the constantly changing labor laws across different jurisdictions. With the right labor rules integrated into the platform, your managers can confidently create schedules, while reducing the risk of human error and any costly penalties associated with non-compliance.

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Learn how top brands like Five Guys, Jersey Mike’s, and sweetgreen use Crunchtime to achieve ops excellence.

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"With Crunchtime, we can see hours scheduled, sales recorded, and any variance in the forecast of sales and labor. Our store managers can use this data to determine if they’re falling short of sales goals or if they need to adjust staffing levels."

George Anthony
Crunchtime Administrator 
Five Guys

Read the case study

 

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Labor Cost Management FAQs

What metrics should I track to monitor my labor costs? Actual-to-Earned hours is a helpful metric that indicates how long your employees should have worked during a shift based on the actual sales during their shift. By analyzing your restaurant’s earned hours versus the actual hours worked, you can see how well your managers are making adjustments and help them plan schedules and react better in the future. For convenience, Crunchtime provides these metrics directly on your dashboard, keeping your managers consistently informed about their labor costs. 
What is my labor cost percentage? Labor typically accounts for one-third or more of your cost of sales, so it is important for restaurants to understand if they are spending too much in this area. Labor cost percentage is a useful metric that calculates the percentage of your revenue that pays for labor.

 Labor Cost Percentage = (Labor / Sales) x 100
How can my restaurant managers control labor costs during shifts?

We understand that restaurant management can often be unpredictable and shifts don’t always go as planned. The best way to navigate this unpredictability is by providing your managers with access to real time data on sales, labor costs, variances, and more. Crunchtime’s easy-to-use mobile app informs your managers to help them make smarter decisions right from the store floor about when to send people home based on current sales and to avoid unnecessary overtime pay. 

How can Crunchtime help us prevent costly labor law violations?

Labor law violations can result in significant unplanned costs for restaurants. To help restaurants maintain compliance, Crunchtime’s labor rules accommodate all federal, state, and city laws, including Fair Work Week, predictive scheduling, minor laws, and more. 

When managers are creating schedules, Crunchtime will promptly alert the user if any labor law has been violated or if costs like overtime will be incurred. Crunchtime also provides managers with real-time alerts, like when it is time to send a minor employee home.