The Bar Business Podcast: Bar & Pub Owner Profits, Marketing & Operations

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

Chris Schneider, The Bar Business Coach Season 3 Episode 150

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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! 

🔴  Start Here🔴
 
📌 If this is something you’re dealing with in your bar, don’t figure it out alone.

Join Bar Business Nation — the free Facebook group for bar owners talking through staff, slow nights, profit leaks, and better ways to run the business.

📢 Join the group here:
https://www.facebook.com/groups/barbusinessnation

🔴Additional resources🔴
Grab the books “How to Make Top-Shelf Profits in the Bar Business!” and “Menus that Sell” here:
https://barbusinesscoach.com/book/