Question 1

When does night premium apply?

Accepted Answer

By labor law, work between 10 PM and 5 AM requires at least 25% night premium. For example, if hourly wage is $10, night rate becomes $12.50 or more.

Question 2

What is the ideal labor cost ratio for restaurants?

Accepted Answer

Generally, restaurant labor cost ratio should be 25-35% of sales. Combined with food cost (FL ratio), keeping it under 60% is considered healthy management.

Question 3

How can I reduce labor costs?

Accepted Answer

Proper shift allocation (concentrate staff during peak hours), multi-tasking, self-order systems, and training to improve productivity are effective. Simple wage cuts can lead to turnover and are not recommended.

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