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

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!

🔴 Learn More: 🔴

📌 Want a personalized bar growth plan?
Book your FREE STRATEGY SESSION here
→ https://barbusinesscoach.com/strategy-session

🚨 Want a stronger team and better bar culture?
Grab the free Bar Culture Workbook now
→ https://barbusinesspodcast.com

📢 Get FREE ACCESS to a group that understands the bar business
→ https://www.facebook.com/groups/barbusinessnation

🚀 Snag my book "How to Make Top-Shelf Profits in the Bar Business!"
Learn 75+ strategies to run it more profitably
→ https://barbusinesscoach.com/book/

Thank you to our show sponsors, SpotOn and Starfish. SpotOn's modern, cloud-based POS system allows bars to increase team productivity and provides the reporting you need to make smart financial decisions. Starfish works with your bookkeeping software using AI to help you make data-driven decisions and maximize your profits while giving you benchmarking data to understand how you compare to the industry at large.

**We are a SpotOn affiliate and earn commissions from the link above.