As a training and development consultant specialising in multi-unit leadership, I’ve seen first-hand how the best multi-site managers lead their labour rather than simply cutting hours to balance the books.
With labour costs increasing sharply – including rises in National Insurance contributions, the National Minimum Wage, and supplier costs – the instinct for many businesses might be to reduce staff hours to maintain margins. This is a short-term fix. Cutting labour without strategy leads to service issues, lower employee engagement, and lost revenue. Definitely not a good long-term approach!
While there’s mounting pressure to maintain profitability amid rising costs, great multi-unit managers see labour as an investment, not just a cost. They ensure their teams are productive, engaged, and aligned with the needs of the business.
“Labour costs – managed strategically – can be a competitive advantage rather than just an expense to be minimised.”
This perspective challenges the traditional view and invites us to explore a more nuanced approach.
The true cost of cost-cutting
When we reflexively cut labour hours without strategic planning, we often trigger a cascade of negative consequences, including:
- Diminished customer experience and slower service
- Lower employee engagement and higher turnover
- Missed sales opportunities and reduced revenue
- Operational inefficiencies and quality issues.
The irony of aggressive labour cost reduction is that it often costs more in the long run through lost revenue, increased recruitment expenses, and training costs for new hires.
We need to view our team members as an investment that can drive revenue and profitability. We recommend these five strategies to transform your approach to labour management:
1/ Smarter scheduling: matching labour to peak trading patterns
Many managers schedule by habit – last year’s rota or a standardised approach that doesn’t reflect today’s trading patterns. Alternatively, use data flexibility and introduce smart rostering to ensure every hour worked is productive.
What great multi-unit managers do:
✔ Use data to inform scheduling: Instead of guesswork, they analyse past sales trends (by hour, day, and season) to match staffing levels to demand.
Example: One manager reviewed six months of sales data and noticed that Mondays were overstaffed. By shifting an extra person to the Friday evening rush instead, they increased speed of service and weekend revenue.
✔ Implement flexible shifts: Build float shifts into the schedule so that managers can adjust staffing in real-time based on trade levels.
Example: A quick service restaurant (QSR) brand introduced a flex pool of part-time staff who could be called in for peak shifts, preventing understaffing without over-scheduling.
✔ Introduce ‘power hours’ staffing: Focus staff where it matters most, ensuring the busiest two to three hours per shift are fully covered.
Example: A café chain reduced total staff hours by 5% but increased revenue by ensuring extra cover during morning rush hours, where upselling opportunities were highest.
2/ Invest in training: an untrained employee is the most expensive one
Cutting labour can often mean cutting corners on training, but a poorly trained team is a costly team. Every mistake, slow service, or failed upsell represents lost revenue.
What great multi-unit managers do:
✔ Cross train for maximum flexibility: Ensure team members develop transferable skills.
Example: One retail brand implemented a multi-role policy where stock assistants were also trained as cashiers. This allowed more efficient staffing without additional hires.
✔ Use quiet hours for up-skilling: Make the most productive use of slower moments to reap the rewards when it gets busy.
Example: A hotel group scheduled off-peak hours for service role-playing, ensuring that staff were ready to handle high-pressure peak times more efficiently.
✔ Create efficiency challenges to improve productivity: A fun way to build team collaboration.
Example: A restaurant chain challenged its kitchen teams to cut 10% off prep times for high-demand dishes, freeing up labour without reducing staff.
3/ Managing holiday entitlements proactively (instead of creating a year-end crisis)
Nothing throws a well-planned schedule into chaos like everyone taking their remaining holiday in the final quarter to avoid losing entitlement.
What great multi-unit managers do:
✔ Use a live holiday tracker: To monitor who still needs to take time off and encourage them to do so well before Q4.
Example: A retail leader implemented a rolling review system, flagging any employees with more than 10 days of unused leave by July.
✔ Encourage staggered leave during quieter periods: A great way of preventing staffing shortages.
Example: A hospitality group ensured that back-of-house staff took breaks in February and September, when business was naturally quieter.
✔ Limit end-of-year holiday bunching: By capping how many people can take leave at once in peak trading months.
Example: One operator introduced a first come, first served holiday policy, ensuring staff booked in advance rather than last minute.
4/ Reducing turnover: replacing staff costs more than retaining them
Cutting labour too aggressively can lead to low morale, higher turnover, and increased recruitment costs. Replacing a trained employee can cost thousands in advertising, interviews, onboarding, and training.
What great multi-unit managers do:
✔ Run ‘stay interviews’ every quarter: This is a great way of remaining aware of the reasons why people stay and using these insights to retain staff.
Example: A QSR leader asked top-performing employees, “What would make you want to stay here longer?” and made small, cost-effective changes based on their feedback.
✔ Offer controlled overtime to strong performers: This is much more cost-effective than hiring temps.
Example: A retail leader reduced hiring by giving extra hours to their best staff first, keeping engagement and quality high.
✔ Focus recognition on more than just sales: When people are motivated by other factors like learning and development they tend to stay.
Example: One operator changed their “Manager of the Month” award to include team development, driving higher retention.
5/ Using labour to drive sales, not just cut costs
Service, efficiency, and upselling pay for labour costs – if your team is trained, motivated, and positioned effectively.
What great multi-unit managers do:
✔ Measure revenue per labour hour (RPLH): And not just labour percentage.
Example: A coffee shop leader introduced upselling incentives, resulting in an 8% increase in average transaction value – offsetting labour costs.
✔ Coach teams to increase sales per transaction: It’s those little extras that can make all the difference to the bottom line.
Example: A QSR brand trained staff to suggest add-ons based on customer behaviour, boosting revenue without increasing staffing levels.
✔ Ensure labour cuts don’t slow service and reduce revenue: Build in workarounds to account for any reduced resourcing.
Example: A hotel cut front-desk staff hours, leading to longer check-in times and lower guest satisfaction. They reversed it by adding a self-check-in kiosk instead.
Final thoughts: labour is a leadership challenge, not just a cost centre
With rising labour costs, multi-unit managers must shift their mindset. It’s about maximising every shift for efficiency, productivity, and revenue generation. Strategic labour management isn’t just an operational necessity; it’s a leadership challenge.
The best multi-unit leaders don’t just manage labour, they lead it by:
· Using data to schedule based on trading patterns, not tradition
· Investing in training to get the most out of every hour worked
· Proactively managing holiday usage to prevent last-minute staffing crises
· Reducing turnover through retention-focused leadership and engagement
· Driving sales per labour hour rather than simply minimising costs.
The equation is simple but powerful:
Strategic labour management = Right people + Right place + Right time + Right skills.
When these elements align, magic happens:
- Service improves because staff are where they need to be, when they need to be there
- Sales increase as teams are empowered to upsell, engage guests, and execute flawlessly
- Staff engagement rises because they feel valued, trained, and supported.
Gordon Ramsay captures this philosophy perfectly:
“If you think good staff are expensive, try hiring cheap ones. The real cost isn’t what you pay them – it’s what they cost you in lost business.”
As labour costs continue to rise, the question isn’t simply: “How can we reduce labour hours?” The real question is: “How can we maximise the value of every labour hour?”
By following the tips I’ve outlined, multi-unit managers can protect margins, maintain service, and build high-performing teams.
What’s your strategy?
The most successful multi-site managers don’t just manage labour, they lead it. The result? Businesses that aren’t only profitable but also deliver exceptional experiences for guests and team members.
What strategic labour management techniques are you implementing in your operation?
