The Bar Business Podcast: Smart Hospitality & Marketing Secrets For Bar & Pub Owners

The Labor Cost Paradox - Why Paying Your Staff More Could Double Your Profits

Chris Schneider, The Bar Business Coach Season 3 Episode 150

Use Left/Right to seek, Home/End to jump to start or end. Hold shift to jump forward or backward.

0:00 | 24:10

Think cutting labor costs is the only way to keep your bar profitable? 

I used to believe that too, but I’ve learned that obsessively cutting labor often hurts your profits instead of helping them.

In this episode, I’ll show you how investing in your staff through strategic overstaffing and better pay can actually make you MORE money by improving guest experience, reducing turnover, and increasing revenue per customer.

📌 What You’ll Learn 📌

  • Why the “keep labor under 30%” rule can backfire.
  • The hidden costs of constant staff turnover (it’s more than you think).
  • How paying a bit more than your competitors can keep your best people around.
  • Why overstaffing during peak hours can boost revenue and guest satisfaction.
  • Simple ways to track the real return on your labor investment.
  • The key staff and sales metrics matter more than just labor percentage.
  • How experienced staff can upsell and prevent theft adding straight to your bottom line.

You’ll hear real strategies for improving profits by treating your team as an investment, not a cost. Plus, easy ways to start tracking metrics like sales per labor hour and guest retention so you know what’s working.

If you want to run a more profitable bar without running yourself (or your staff) into the ground, you won't want to miss this episode! 

🔴 Learn More: 🔴

 📌 Want a personalized bar growth plan?
Book your FREE STRATEGY SESSION here
 → https://barbusinesscoach.com/strategy-session

🚨 Want a stronger team and better bar culture?
Grab the free Bar Culture Workbook now
https://barbusinesspodcast.com

📢 Get FREE ACCESS to a group that understands the bar business
https://www.facebook.com/groups/barbusinessnation

🚀 Snag my books "How to Make Top-Shelf Profits in the Bar Business!" and "Menus that Sell". 
https://barbusinesscoach.com/book/ 

Our Partners:

QuixSpec Bar and Restaurant Intelligence
Business intelligence that actually works! Make confident, data-driven decisions that directly impact your bottom line.
https://www.quixspec.com

Dining Alliance
Dining Alliance helps foodservice operators of all sizes unlock real savings and earn CashBack through our industry-leading rebate program.
https://mydiningalliance.com/register/easy/?c=cjps&segment=Restaurant