Continue to Site

Labor costs over 50%

When labor costs were low enough, it made sense to be open longer hours. During the down time you could still eat, take a break and get all the prep done.

Now depending on where you are, Labor has become the highest cost item. It no longer makes sense to stay open long hours. Here, i have reduced my hours almost in half and yet my labor dollars are 50% higher then it was 5 years ago.
We have reduced hours over the years also. Originally we copied dominos type hours by staying open till 1 am. I’ve notched it back little by little. Now we close at 10 and 11 on the weekends. Makes for happier employees also.

Sent from my iPhone using Tapatalk
 
Last edited:
I planned on being open more, and most likely I would have the business, but have concluded all the employee drama, as echoed here, makes me think it’s just not worth it. It’s slamming when we are open though, we knock out the pies. It’s a neighborhood pizzeria, tons of regulars. The trick is to make your pizza addictive;). I’m female BTW.
You’re always going to have people unsatisfied with your hours. You can be open 10 to 11 every single day, and you’ll still hear, “You should stay open later” What for? So I can have 3 people stand around another hour to sell you a slice, ha-ha. Its simple math.
I think downtime can really inhibit your ability to offer value, perceived, or otherwise, to the customer. Puts you on the defense, where you feel you have to make it up somehow. There’s no denying that value is as important as ever. I’m in the Bay Area, and frankly, when I go out to eat I’m appalled at the lack of it. But, since I happen to own a restaurant, I know what they are going through…
 
Last edited:
Domino’s is now requiring stores that do $60-100 (started at $60 then was to go to $100) in their last hour to be open another hour.
So, if you close at 11pm and your 10-11 hour is $60 (for a period, on average, I believe) then you will be required to stay open to midnight.
This was in the pipeline and being discussed when I sold my last store in 2015.
I knew people open until 2am and it was pushed to 3… 4am pushed to 5am.
 
Last edited:
Domino’s is now requiring stores that do $60-100 (started at $60 then was to go to $100) in their last hour to be open another hour.
So, if you close at 11pm and your 10-11 hour is $60 (for a period, on average, I believe) then you will be required to stay open to midnight.
This was in the pipeline and being discussed when I sold my last store in 2015.
I knew people open until 2am and it was pushed to 3… 4am pushed to 5am.
I’m curious, what kind of volume does a typical Dominos do a week?
 
Last edited:
Domino’s is now requiring stores that do $60-100 (started at $60 then was to go to $100) in their last hour to be open another hour.
So, if you close at 11pm and your 10-11 hour is $60 (for a period, on average, I believe) then you will be required to stay open to midnight.
This was in the pipeline and being discussed when I sold my last store in 2015.
I knew people open until 2am and it was pushed to 3… 4am pushed to 5am.
Our minimum labor $ for 1 hour of “open” is around $50.
 
Last edited:
I planned on being open more, and most likely I would have the business, but have concluded all the employee drama, as echoed here, makes me think it’s just not worth it. It’s slamming when we are open though, we knock out the pies. It’s a neighborhood pizzeria, tons of regulars. The trick is to make your pizza addictive;). I’m female BTW.
You’re always going to have people unsatisfied with your hours. You can be open 10 to 11 every single day, and you’ll still hear, “You should stay open later” What for? So I can have 3 people stand around another hour to sell you a slice, ha-ha. Its simple math.
I think downtime can really inhibit your ability to offer value, perceived, or otherwise, to the customer. Puts you on the defense, where you feel you have to make it up somehow. There’s no denying that value is as important as ever. I’m in the Bay Area, and frankly, when I go out to eat I’m appalled at the lack of it. But, since I happen to own a restaurant, I know what they are going through…
Bluebird, your posts inspired me to reconsider my entire operation. Over the past two days I ran a very detailed analysis. I broke down my labor costs by hour over the last year, and what I discovered is that from 11am to 4pm my labor costs are anywhere from 70-80%! That’s not counting the cost of food and electricity. When you add those, I’m actually losing quite a bit of money during those hours. From 4pm to 9pm my labor costs go down to 30-40%, which is totally acceptable in California. I’ve tried over the last two years to build up lunch business, but with only marginal success. And that’s despite the fact that we’re the highest rated pizzeria in the three surrounding towns. Our location just doesn’t work for that. So now I’m considering changing my hours of operation to 4pm to 10pm Mon-Fri. I will keep my regular hours 11am-9pm for Sun and Sat. It’s a huge change and I’m a bit scared, but my numbers are pointing me in this direction. At any rate, thank you for this idea!
 
Last edited:
Lee kim. I think that is a great Idea. I am only open from 4pm to 10pm. I could probably do a pretty decent amount for lunch in my area, but I just dont want to. I want to be in the store every open hour.
 
Last edited:
Lee kim. I think that is a great Idea. I am only open from 4pm to 10pm. I could probably do a pretty decent amount for lunch in my area, but I just dont want to. I want to be in the store every open hour.
I’ll start next week and let everyone know how my experiment goes. Thanks for the support!
 
Last edited:
We’re open 5-9 Sunday thru Thursday and 5 - 9:30 Friday and Saturday. Neighbourhood pizza place. We do great volume with 3 guys. Limited hours take the stress out of managing/staffing.
 
Last edited:
We’re open 5-9 Sunday thru Thursday and 5 - 9:30 Friday and Saturday. Neighbourhood pizza place. We do great volume with 3 guys. Limited hours take the stress out of managing/staffing.
What is your weekly volume, if you don’t mind sharing?
 
Last edited:
I broke down my labor costs by hour over the last year, and what I discovered is that from 11am to 4pm my labor costs are anywhere from 70-80%! That’s not counting the cost of food and electricity.
Have you tried to see if having a bare minimum crew for those hours, would bring the costs down?
 
Last edited:
We’re open 5-9 Sunday thru Thursday and 5 - 9:30 Friday and Saturday. Neighbourhood pizza place. We do great volume with 3 guys. Limited hours take the stress out of managing/staffing.
10k a week, 4 hours a day, and 3 guys. I must meet these 3 guys. 🙂
 
Last edited:
I broke down my labor costs by hour over the last year, and what I discovered is that from 11am to 4pm my labor costs are anywhere from 70-80%!
At least in our store, a good portion of that time is needed for prep in order to do the business in the evening. Once I am paying someone to be there for 4-5 hours of prep the incremental cost to add a driver is not much.

We do a decent lunch business. Typically we have about $400 in by 4PM. If I am paying a manger to be there to work on prep for perhaps four of those hours then my incremental labor to be open rather than just prepping is two hours of manager time and 5 hours of driver time. Pretty good deal even if we only do a couple of hundred in sales.
 
Last edited:
At least in our store, a good portion of that time is needed for prep in order to do the business in the evening. Once I am paying someone to be there for 4-5 hours of prep the incremental cost to add a driver is not much.

We do a decent lunch business. Typically we have about $400 in by 4PM. If I am paying a manger to be there to work on prep for perhaps four of those hours then my incremental labor to be open rather than just prepping is two hours of manager time and 5 hours of driver time. Pretty good deal even if we only do a couple of hundred in sales.
I figured I can open at 4 and still have enough time for prep. I wish I could have more lunch business, but I think I’ve tried everything, under the sun, but the volume just isn’t there.
 
Last edited:
Yes, let us know how it goes. I’d love to do lunch as well, but it is what it is. I’ve definitely noticed places around here aren’t as busy for lunch anymore. I will do big orders on occasion - if they are worth it only. I creep hours back sometimes too, to at least take phone orders, changing the times on yelp and google. This helps ease the rush that happens at 4. This way if business slows, I’m not committed, and I’m always open during my posted hours. This last week was crazy for us, literally 90% of our business was done in a 2 hour span each day. Ugh
 
Last edited:
Back
Top