Know Your Labour Cost Percentage
Calculate your labour cost percentage weekly: total wages paid divided by total revenue, multiplied by 100. If you're above 35%, you have a problem. If you're below 28%, you may be understaffed and risking service quality. The sweet spot for most Australian cafés is 30–34%.
Build a Roster Based on Revenue Forecasts
Don't roster by habit — roster by forecast. Look at your sales data for the same period last year, adjust for any known factors (public holidays, local events, weather trends), and build a roster that matches staffing to expected demand. Over-staffing on quiet days is one of the most common and most avoidable labour cost problems.
Understand Your Award Obligations
Australian café workers are covered by the Restaurant Industry Award or the Hospitality Industry Award, depending on your business. Penalty rates on weekends and public holidays are significant — a casual employee working Sunday can cost 75% more per hour than a weekday rate. Factor these into your rostering decisions and your menu pricing.
Invest in Training to Reduce Turnover
High staff turnover is expensive. Recruiting, onboarding, and training a new café employee costs an estimated A$3,000–$5,000 when you factor in lost productivity and management time. Investing in your team's skills and creating a positive workplace culture is one of the best returns on investment a café owner can make.
Use Technology to Improve Productivity
Modern POS systems, kitchen display screens, and ordering apps can all reduce the labour required per cover. A café that takes orders via QR code can serve the same number of customers with one fewer floor staff member. Technology investment that pays back in reduced labour within 12 months is almost always worth making.
