Of the many challenges facing the restaurant industry today, the rising cost of labor is one of the most formidable. According to the U.S. Bureau of Labor Statistics, average hourly earnings in food and drinking establishments jumped from $15 in 2018 to $19.42 in 2022. Factors contributing to this trend include the ongoing labor shortage and recent increases in federal, state and local minimum wage requirements. In a recent survey by FSR magazine, restaurant operators were asked to name their most significant challenges. The top three answers were food costs (92%), labor costs (89%) and energy and utility costs (63%).
To address this challenge, restaurants should calculate and track their labor costs and consider strategies for controlling them. READ MORE