Entrepreneurs and franchisees have a hefty list of non-negotiable business expenses. It is imperative to buy supplies, carry insurance, write checks for rent and also pay the inevitable tax bill.
The average restaurant or food service establishment spends 20%-30% on labor costs. Business owners are reporting the cost of labor is exceeding the cost of goods making it harder and harder to remain profitable.
Find Your “Labor Eaters”
Labor eaters are time consuming aspects of the business that ultimately eat-up-your-labor. At the store level, every penny counts and your labor costs are your most controllable expense.
Automated Drink Dispensers and Self-Serve Kiosks are among a few of the latest and greatest updates at quick serve establishments. Many restaurants boast ordering online or through an app which allows for fewer scheduled cashiers.
Cleaning automation is rising at exceptionally high rates. Health departments have stricter sanitation guidelines and food establishments are tightening their belts on cleanliness. Power Cleaners, Automated Chemical Dispensers and Internally Self-Cleaning Appliances have become commonplace in food establishments worldwide.
The Bottom Line
Restaurants are investing in automation for 2 big reasons:
1. Increase profitability
2. Redeploy the payroll/labor back into the customer experience.
Approach the option to upgrade to automation like any business decision. Compare costs, pros, cons and most importantly TCO (total cost of ownership). In addition, work with companies that assist you every step of the way and have a proven track record of success. For more information on cleaning automation, check out another one of our awesome blog posts here.
Thanks for reading,
-The Hydra Rinse Team
References and Image Credits
- Image; https://www.businessnewsdaily.com/7089-minimum-wage-hikes.html
- http://smallbusiness.chron.com/percentage-should-restaurant-spend-payroll-24851.html
