In the competitive landscape of the restaurant industry, every dollar counts. For many establishments, particularly fine dining restaurants like steakhouses, labor costs can become exorbitant—not just for food preparation and service, but also for cleaning at the end of the night. This article explores how restaurants are losing money on labor costs due to in-house cleaning and provides financial examples that illustrate the potential savings offered by professional cleaning services.
The Hidden Costs of In-House Cleaning
In-house cleaning typically involves using existing staff—chefs, cooks, and waitstaff—to clean the restaurant after hours. While this may seem like a cost-saving measure, it often results in significant financial losses due to overtime pay, decreased productivity, and inefficient use of labor.
- Overtime Costs: Many restaurants operate on tight schedules, and staff often work beyond their regular hours to manage cleaning duties. According to the Bureau of Labor Statistics, the average hourly wage for restaurant cooks is approximately $14.50. If a cook works an additional 2 hours for cleaning, that’s an extra $29.00 per night.
- Increased Labor Costs: Waitstaff are often required to stay late to assist with cleaning as well. If a server earning $12.00 per hour works an additional hour, this adds $12.00 to the nightly labor costs. When combined, cleaning costs can quickly escalate.
- Impact of Employee Turnover: Cleaning duties can lead to employee burnout, resulting in higher turnover rates. According to the National Restaurant Association, the turnover rate in the restaurant industry can reach up to 75%. The cost of recruiting and training new employees can range from $1,000 to $5,000, further compounding labor-related expenses.
Financial Example: A Fine Dining Steakhouse
Let’s consider a hypothetical fine dining steakhouse with the following staff:
- 2 Chefs: $14.50/hour
- 4 Cooks: $14.50/hour
- 3 Waitstaff: $12.00/hour
Assuming the restaurant operates for 8 hours and the cleaning takes an additional 2 hours after closing, here’s a breakdown of labor costs for cleaning duties:
Cleaning Labor Costs per Night:
- Chefs: 2 chefs x $14.50/hour x 2 hours = $58.00
- Cooks: 4 cooks x $14.50/hour x 2 hours = $116.00
- Waitstaff: 3 servers x $12.00/hour x 1 hour = $36.00
Total Cleaning Costs per Night:
$58 (chefs) + $116 (cooks) + $36 (servers) = $210.00
Assuming the steakhouse operates 5 nights a week, the weekly cleaning cost would be:
$210.00 x 5 = $1,050.00
Over a month (approximately 4 weeks):
$1,050.00 x 4 = $4,200.00
The Cost of Professional Cleaning Services
By contrast, hiring a professional cleaning service may cost a steakhouse significantly less.
- Typical Cost of Professional Cleaning Services: Many commercial cleaning services charge between $150 to $300 per cleaning session, depending on the size and condition of the restaurant.
Assuming a cost of $200 per night for professional cleaning:
- Weekly cost: $200 x 5 = $1,000.00
- Monthly cost: $1,000 x 4 = $4,000.00
Financial Comparison
- In-House Cleaning Costs: $4,200.00/month
- Professional Cleaning Costs: $4,000.00/month
Monthly Savings:
By outsourcing cleaning services, the steakhouse could potentially save $200.00 per month.
Additional Savings and Benefits
- Increased Productivity: By allowing staff to focus on their primary roles—cooking and serving—restaurants can enhance customer service and improve the overall dining experience. This could lead to increased sales and repeat customers.
- Reduced Liability: Professional cleaning services are trained to adhere to health regulations, which can minimize the risk of health code violations and associated fines.
- Better Resource Allocation: By saving on labor costs, restaurants can allocate funds to other critical areas such as marketing, employee training, or menu enhancements.
Conclusion
In-house cleaning may seem like a cost-effective approach, but the reality is that it can lead to significant financial losses due to labor costs, overtime, and employee turnover. By investing in professional cleaning services, restaurants, particularly fine dining establishments like steakhouses, can reduce their cleaning expenses, enhance productivity, and ultimately improve customer