Cost of labor

How one restaurant added 4.3 profit points without cutting a single shift.

Harbor & Hearth cut labor by 4.7 points, more than quadrupled profit, and got the owner off the floor in 90 days.

Harbor & Hearth is a 110-seat full-service restaurant in Denver. When they came to us:

  • Labor was stuck at 38.6%
  • Net profit hovered around 1.2%
  • The owner was on the schedule six days a week, moving between expo, host, and front of house
  • The team said they were “always short”, even on soft Mondays
“If this doesn’t turn around in the next quarter, we’re cutting a day of service.”

What we changed.

We installed the People-Protected Profit System in one location over 90 days: productivity benchmarking, capacity and labor design, and a control center.

The 90-day result.

Labor, from 38.6%
33.9%
Net margin, from 1.2%
5.5%
Sales per labor hour
+19%
Owner on the business, not 6 in it
3 days

Same menu. Same wage laws. Same building. No pay cuts. Just people matched to real demand, and a GM with a clear playbook.

“For the first time I can see the labor problem before it hits the P&L, and I know exactly which shifts to fix.”

If you don’t know your sales per labor hour by daypart, or your managers can’t explain when to add or cut a person in under 30 seconds, you’re making labor decisions on gut feel. That’s the gap we close every week.

See what a 2–5 point swing is worth in your restaurant.

We’ll take your last 4–8 weeks of sales and labor, show what each point is worth in dollars, and outline one or two shifts to test next pay period. No pitch.

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Your numbers have the answer.
Let’s go find it.

One 45-minute working session. A specific dollar figure. A plan to capture it. No commitment.

Book your Labor Profit BlueprintFor operators in North America, Australia and Europe