How Your Restaurant Can Save Money Without Laying Off Employees

For most restaurant owners, it’s difficult to layoff employees in the name of saving money. Many owners do everything they can to try and fix the situation on their own—take a pay cut, work extra hours and hire less, take out loans to help pay the company bills—but sometimes there is nothing a boss can do to help keep things the way they once were. Money is tight, and layoffs are on the brain. 

Although you will likely have to enlist the help of your employees, there are fortunately ways to help avoid layoffs during these tough economic times. Things will change around your office, but employees should appreciate anything that lets them keep their jobs. Below are a few things you can consider before handing out the pink slips:

Alternatives to Laying Off Employees When Money is Tight

  • Pay Cuts – This is the best way to save money when money is in need of saving. In other words, you can really help get your restaurant out of a financial hole if you cut the pay of all your employees. It’s important to keep in mind, however, that the boss and executives should also get a pay cut. It’s not necessary, but it will help show your employees that your company is worth sticking around for in the long run.
  • Perks – You may think coffee keeps your employees awake in the morning, but they should perk right up if they know their job is at risk. Things such as games in the office, company parties, and free food should stop if you’re trying to save money.
  • Travel – Try and cut out employee travel entirely from your business plan. Send employees only on the most necessary business trips. You may need to buy web conferencing software to accommodate, but this is much cheaper than paying for multiple flights, hotel rooms, rental cars, and food.
  • Paid Vacation – In a sense, paid vacation is a perk. Let employees know that they can still take days off during the year, but they will not be paid. Once again this will not be popular, but it beat being out of a job.

While some of your employees will look elsewhere for work, many will stick around until things get better. If your employees really believe in your company and believe in the management, you would be surprised how much they would deal with to stay involved. If you put it simply, the choice seems obvious: Do you want to save the job of a mother who has three children at home? Or do you really want that cup of coffee in the morning and your usual afternoon foosball game?

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Amanda DiSilvestro is a professional blogger that writes on a variety of topics including restaurants in NYC. She writes for, a leading restaurant guide directory of top dining locations.


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