Save Labor Costs Ghost Kitchen3 min read

Save Labor Costs Ghost Kitchen

Are you concerned about how to save Labor Costs Ghost Kitchen?

We assure you that you’d find some useful tips here. Well, it’s almost impossible to survive without labor. But you can definitely manage your labor costs to boost your overall revenue.

Most of the restaurants and ghost kitchens keep their labor costs between 20 to 30% of their overall revenue.

You need to be very careful about managing labor costs because labor plays a vital role in making your business successful.

Believe it or not, you won’t be able to build a better reputation in the industry if you don’t have honest labor.

Fortunately, we’ve prepared some important tips you can use to save labor costs ghost kitchen.

But before we head towards those tips, we’d like to take a look at the costs associated with labor.

Companies such as Cloud Kitchens and Kitchen United offer kitchen space for rent. Kitchen United, for example, provides a turnkey model, offering a code-safe kitchen with appliances and cooking implements. Cloud Kitchens offers a similar model. Other companies in the ghost kitchen space include Door Dash Kitchens and Virtual Kitchen Co.

Ross Waller, Restraunt365

What is the labor cost in a ghost kitchen?

Save Labor Costs Ghost Kitchen

Here some labor costs you’d have to manage while running a ghost kitchen.

  • Labor hiring costs
  • Salaries and their wages
  • Bonuses
  • Payroll taxes
  • Accommodation expenses
  • Overtime and Health care expenses
  • Travelling and vacation costs

We need to keep an on all the important factors while trying to save labor costs ghost kitchen. Now, that you’ve understood the costs associated with labor, it’s time to take a look at how you can manage these costs.

Use of ERP System to save labor costs ghost kitchen

You must consider using an ERP system that has the ability to manage important elements like:

  1. Labor Reports and Sales Reports
  2. Marketing Features at some extinct
  3. Attendance and staff management
  4. Inventory and customer relationship management etc.

Having an ERP system means you’d be able to keep a track of how well your employees are working. You can then pay them based on their overall performance.

Avoid Seasonal Hiring

The ghost kitchens need to hire some employees for a holiday season or on a specific event. The problem is that these employees charge a high amount for their services because they understand you can’t survive without them.

The best way to save labor costs ghost kitchen in this situation is to offer some extra time to your permanent employees.

We bet you’d be able to save around 60-70% costs if you convinced your existing employees to work for extra hours.

Try to decrease your Operating Hours

You need to keep a track of how well your business is performing at different times of the day.

For instance, if you do not get any orders in the morning, you can stop working in those hours.

You should only bring your employees to work when they can actually generate money for you.

Focus on educating your Labor

Preparation ready

A well trained and educated labor can save a lot of your resources. If your labor is well aware of your POS (point of sale) then it can save the loss of your resources.

It means, they should use resources with care and should manage things as their own.

Most importantly, it also means that in order to Save labor Costs Ghost Kitchen also needs to change its strategy in utilizing their expenditure.

After all, in order to sustain high-quality demand. The experience of your Labors does need to be kept in check.

Thereby, fulfilling the role of a perfect boss may be tough. But with our guidelines, you are sure to meet those expectations.

Also, if you want to read more about Ghost Kitchens, then just press on this link here. 

Image Credit : https://medium.com/eatos/can-cloud-kitchens-save-the-restaurant-industry-aed85a1e8a0e