Two Ways to do Labor Cost Allocation
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🤔Labor costs are going up everywhere, but here’s the trick smart restaurants use to fight back. It’s not just cutting hours or slashing staff. It’s making each order more profitable so labor looks smaller as a % of sales. Take chicken parm. It costs about $9 to make, which means margins are thin. But when you pair that dish with iced tea, calamari, or breadsticks, those sides cost almost nothing to produce, require no extra labor, and are almost pure profit. That profit boost helps bring down y
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