Restaurant Profitability Blog

The restaurant industry is killing it in more ways than one.

You could say it’s killing it when it comes to sales… they’ve shot up 3.8% from last year.

That’s pretty good.

And restaurant-industry employment is now 14 million employees strong, adding jobs at a 3.5% rate last year.

But the restaurant industry is also killing it in another way.

Turnover rates are staggering and labor costs are eating operators’ dollars. The overall turnover rate in the industry was 66.3% in 2014, and 72.1% in 2015.

Although an improving economy means more business for restaurants, here are 6 reasons it also means high labor costs.

Running a restaurant is more complicated than most people realize. You have to do an awful lot of things right to make a little bit of money.

And when you’re busting your butt providing a great product and great customer service, you should at least be able to put some money in your pocket at the end of the day, right?

To that end, we wanted to show you seven ways that restaurant managers leave money on the table that should stay in their bank account instead.