4. The labor myth
It might be easy to assume centralizing operations will help reduce cost of labor, but that’s not typical. “Your labor costs do not drop significantly,” Neumann says. Adds Hoch, “Every time you handle the food, it costs you. Pulling, prepping, transporting—sometimes it can cost you significantly more than you anticipate in labor.”
Instead, operators should aim to save in other areas, including equipment, food waste and purchasing. “[Our commissary] allows us to take full advantage of opportunity buys,” Neumann says. His department saves about $570,000 annually, a 5% reduction in overall food cost, because large quantities can be produced and stored for later use.