3 Essential Tips to Avoid Overstaffing and Save Money on Labor Costs

Picture this: It’s a Tuesday afternoon at your bustling cafe. You’ve got four baristas on the floor, and the lunch rush is winding down. Suddenly, you notice a lull. Customers have thinned out, but your staff is still milling around, chatting, and the coffee machines are idle. The labor costs are ticking away, eating into your profits. Sound familiar?

Overstaffing is a silent profit killer, a common struggle for cafe and restaurant owners alike. It’s the feeling of wasted potential, of money literally walking out the door. But it doesn’t have to be this way. Controlling restaurant labor costs is absolutely critical to the success of your business. Let’s dive into some actionable tips to help you avoid overstaffing and reclaim control of your bottom line.

1. Predict and Prepare: Master the Art of Demand-Based Scheduling

The foundation of effective staffing is understanding your demand. This means moving beyond guesswork and diving into your sales data. What days of the week are busiest? What times of day see the highest foot traffic? Which menu items fly off the shelves?

Analyzing Your Data

Start by reviewing your sales reports. Look at hourly, daily, and weekly sales figures for at least the past six months (the longer the better!). Identify peak periods and slower times. Use this data to create a staffing model that aligns with customer demand. For example, if you consistently see a surge in customers between 11:30 AM and 1:30 PM on weekdays, schedule more staff during those hours. Conversely, reduce staffing during the quieter afternoon periods.

Consider implementing a cafe staffing calculator to estimate the number of staff you need based on sales volume and expected customer flow. You can find free cafe staffing calculators online to simplify this process and improve the accuracy of your scheduling decisions.

Example: Sarah’s Cafe

Sarah, a cafe owner in Austin, used to schedule the same number of baristas every day. After reviewing her point-of-sale (POS) data, she discovered that her weekend mornings were significantly busier than weekday mornings. By adjusting her schedule to add two extra baristas on Saturdays and Sundays, she reduced wait times and increased customer satisfaction. She also saved money by reducing unnecessary staff hours on weekdays.

Implementing demand-based scheduling isn’t just about cutting costs; it’s about optimizing service. When you have the right staff in place at the right time, you can provide better customer experiences, leading to increased loyalty and positive reviews.

2. Empower Your Team: Embrace Flexibility and Employee-Driven Scheduling

Traditional scheduling methods often involve the manager dictating every shift. While this might seem efficient, it can lead to frustration and burnout for your employees. Giving your staff more control over their schedules can significantly reduce labor costs and improve employee morale.

Self-Scheduling and Availability Forms

One powerful technique is to leverage employee availability. Start by using an employee availability form to gather everyone’s preferred hours and days they are available to work. Then, consider implementing self-scheduling. This involves allowing employees to choose their shifts from a pool of available hours, as long as it matches up with demand requirements. This approach places the responsibility of shift coverage on the employees, which often leads to fewer last-minute call-outs, and more committed staff.

Shift Swapping and Open Shifts

Facilitate shift swapping. Allow employees to trade shifts with each other, as long as they find coverage and meet specific policy guidelines. This flexibility can accommodate unexpected changes in availability, reducing the need to call in extra staff or pay overtime. Encourage your staff to use this and communicate quickly with each other so you can quickly cover any open shifts.

Pro Tip:

“Set clear expectations for shift swaps. Require employees to notify you of any changes, and make sure the swapped shift still meets your business needs. This ensures a smooth workflow for everyone.”

Consider utilizing a system for open shifts. If you have a shift that needs to be filled, you can make it available to all employees to take. This helps fill the schedules more quickly and is also a great way to help employees pick up extra hours if they want.

The Power of Software

While you could manage shift swaps and availability requests manually (through spreadsheets, texts, and emails), this quickly becomes a logistical nightmare. That’s where technology comes in. Scheduling software, like Shifty, simplifies this process by allowing employees to request swaps, view open shifts, and manage their availability directly through their phones. It also allows you to make rapid adjustments if someone calls out.

3. Communicate Clearly: Policies, Procedures, and Preparation

Even with perfect planning, unexpected events like employee call-outs can throw a wrench in your schedule. Having robust policies and clear communication channels in place is crucial to minimize the impact and keep labor costs under control.

Establish a Clear Call-Out Policy

Define a clear call-out policy that all employees understand. This policy should outline:

• How far in advance an employee must notify you of an absence
• The consequences of calling out without sufficient notice
• How to communicate their absence

Make sure this is in writing. A documented policy prevents confusion and promotes accountability.

Address No-Shows Promptly

Dealing with no-show employees is one of the most stressful parts of restaurant management. If an employee fails to show up for their shift without any prior communication, you need a plan in place. Consistent and transparent policies protect you from the constant pressure of understaffing.

If an employee fails to show up, attempt to contact them immediately. Document the incident, including the date, time, and your attempts to reach them. The appropriate response may vary depending on the circumstances and your business’s policies, but the focus should be on how to avoid it happening again.

Pro Tip:

“Use a scheduling app’s messaging feature to instantly notify your team of a call-out. Then, use it to put out a message for any available employees that can cover the shift.”

Communication is Key

Keep the lines of communication open. Use a platform, such as a scheduling app, to communicate changes to employees. The more your staff knows what’s going on, the better. When communication is strong, everyone is on the same page.

You can also use tools like a restaurant employee call-out checklist to ensure you cover all of the bases and are well-prepared for any situation.

Let’s look at a quick comparison:

By implementing these strategies, you’ll be well on your way to creating fair schedules, minimizing labor costs, and boosting your restaurant’s profitability.

Next Steps

Ready to take control of your labor costs? Here’s what you can do today:

1. Analyze your sales data from the past month to identify peak and slow periods.
2. Draft a clear call-out policy and communicate it to your staff.
3. Try a scheduling app like Shifty to save 3+ hours per week.