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About Rick Dudasik
Expertise
I can answer questions relating to most areas of the restaurant industry including: starting a restaurant, design, food costing and pricing, site selection, staffing, training, equipment, profit and loss questions, sales training, recipies and many other areas of the industry. I have been in the industry for thirty years and have experience in fast food management, multi unit management, casual dinning management,and ownership. Have helped open over fifteen units throughout the United States.

 
   

You are here:  Experts > Business > Small Business: UK > Running a Restaurant > Labor costs

Running a Restaurant - Labor costs


Expert: Rick Dudasik - 8/17/2009

Question
Hi Rick, I have a 180 restaurant serving casual food in a resort beach town. We just opened in July. I am trying to set some guides for calculating labor, food and liquor costs. I am using 23% labor cost for the FOH and BOH combined and 35% combined food and liquor. I am basing this off of net sales figures. Does this sound correct?

Answer
Dear Herb,

Congrats on your new place !!

It's gonna take 3-4 months for things to "settle down"

The costs primarily depend on your "style" or "theme" along with your "menu"

I would need more info to tell you with any accuracy what you should be running.


Type of restaurant
hours of operation
type of kitchen
size of restaurant
area of country
number of employees
number of managers
Have a website?
sales
%at lunch
% at dinner
Breakfast?
Alcohol
% 0f alcohol sales
etc.


Rick


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