If sales are slow, payroll will be high as a percentage of sales. During the slow months, some operators try to cut payroll while keeping a qualified staff. When business picks up again, the operators shift back to full staffing. A big mistake is to think the business can carry the staff during the slow months. However, unless an operator is willing to lose money, the restaurant owner will need to cut staff when business is slow.
Higher percentages hurt profitability.
The next page contains a breakdown of wages for key positions in dollars and percentage of sales. Since most of the data is based on a wide range of restaurants, the wage rates differ. Use the sales percentages as a guide when managing the business. However, pay careful attention to the dollars. The percentages are important, but it is the dollars that count in the end.