How Smart Kitchens Reduce Labor Challenges

Restaurants comprise one of the lowest-margin industries, with an average profit margin between three and five percent. Even some of the most well-decorated and successful fine-dining establishments will earn five or six percent annually. Low profit margins also mean a low margin for error.

One of the main factors is labor as a percentage of sales. Labor comprises roughly 25 to 35 percent of all overhead costs in a restaurant. In reality, operations should strive for numbers between 20 and 30 percent. Setting targets and monitoring those statistics are important key performance indicators, and leveraging technology can help make that process easier.

Restaurant operators also face enormous challenges in finding great staff to hire, much less pay. Despite federal labor statistics showing that wages are slowly increasing across the country, it’s still difficult to find labor in foodservice. So, what can be done about the current labor challenges? How can operators reduce labor as a percentage of sales? Is there technology that helps provide solutions? It’s a complex issue with multiple facets, but one concept can help restaurateurs and operators make the most out of the labor they do have. Smart kitchens and connected restaurants can help make operations more efficient.

Reducing Labor Challenges with Smart Kitchens

What is a connected restaurant? In back-of-the-house situations, staff perform many operations and functions. Here’s just a partial list of their responsibilities: cook food, clean stations, maintain equipment, order ingredients, report on safety, the list goes on. Of course, there are many more things restaurant staff members do. While not all of the functions apply, a majority of them are enhanced and made easier with Internet of Things software platforms that connect those processes and equipment solutions to the cloud.

Safety Reporting in Smart Kitchens

In many traditional kitchens, Hazard Analysis and Critical Control Points (HACCP) reporting can be time-consuming at best. Operators need to monitor walk-in refrigeration temperatures, for example, at regular intervals, often pulling tape that displays those readings. It gets even more convoluted when those data points are delivered to the proper authorities. This can consume hours from just a single individual.

With a smart kitchen, these temperature levels can be tracked with equipment connected directly to the cloud. At any given time or moment, a staff member can pull the appropriate HACCP reports and deliver them directly to the person who needs to read them. And this is just one example.

Maintenance Monitoring with Smart Kitchens

Similar to safety reporting, the same platforms can help operators realize a more efficient maintenance schedule for foodservice equipment and supplies. There’s nothing more challenging than an interruption to service in the middle of a rush, and when a particular unit’s key performance indicators are measured 24/7 and in real-time, it makes maintaining that unit a lot easier.

This also has a positive impact when a service call is needed. This will save valuable staff time in terms of letting a service technician know the exact issue. And when that technician arrives, he or she will be able to quickly work to fix the problem because it was diagnosed even before arrival.

Open Kitchen® is the IoT solution for foodservice.

Middleby and Powerhouse Dynamics have developed an award-winning IoT platform for connecting commercial kitchens and restaurants, ultimately leading to a more efficient commercial kitchen. Powerhouse Dynamics has received many honors, including a 2022 Maverick Award from Inspire Brands®, Inc. as its most innovative supplier.

Learn more about how Open Kitchen can revolutionize your foodservice or retail operations.

Sources:

U.S. Bureau of Labor Statistics