Labor cost (in particular, the example of fast-food restaurant): structure and role in the company's production activity and the ways of its optimization

The article discusses the role of labor cost in Russian economy and its structure. The author has analyzed one of the means of a company survival in the period of crisis, labor market trends and proved the importance of labor cost in the structure of total cost of any company. The study was conducted with the help of tutorials and information Internet portals. It was found that in 2015 more than 600 thousand people were reduced. The dismissal of a large number of employees is not an effective method for the economic development of the company. In addition, labor cost should be viewed as an investment that pays off in the future and brings additional revenue for the company. There were reflected components of labor cost for a restaurant. The author made sure that in many countries the share of the service sector is a significant part of GDP. Since this sector is labor intensive, ways of reducing costs are particularly relevant for these countries. Restaurants and cafes pay great attention to the development of the personnel and labor cost, because there cannot be a process of providing services and making a profit without employees. The author provided recommendations for companies to optimize the staff costs, for example, to use out staffing, civil contracts, an hourly wage and to change the duration of the work shift.