Labor costs run 25-35% of total restaurant sales — your second-largest expense after cost of goods. This guide walks you through a six-step budget framework, data-driven scheduling, technology that pays for itself, and the employee-centered practices that reduce turnover and overtime simultaneously.
Wage and hour violations are among the most common legal issues in the restaurant industry. The IRS levied over $127 million in classification penalties against restaurants recently. This guide covers the FLSA rules, tip credit, the 80/20 rule, worker classification, overtime, child labor, and harassment prevention requirements.
The restaurant industry has historically high rates of FLSA noncompliance — here is what every operator needs to know about overtime rules, the tip credit, and common violations.