Scheduling Restaurant Workers to Minimize Labor Cost and Meet Service Standards

Abstract

In labor scheduling, restaurant managers face dual challenges: overstaffing that means excessive labor costs and understaffing that invites the opportunity cost of service errors and lost business. Most operators seek to rely on their personal experience and judgment to determine schedules that are meant to maintain service quality and limit labor costs, but an analysis of one Korean restaurant finds that this goal is elusive. The labor scheduling model based on integer programming (IP) is presented to address the staffing and scheduling issues and service standards by maintaining an appropriate ratio of part-time to full-time employees. Using appropriate constraints, the model was used to generate a schedule for a table service restaurant in Seoul, South Korea, that is affiliated with a global chain. When compared to the existing schedule, the IP-generated schedule helped the restaurant reduce overall labor costs while ensuring appropriate service levels.