Restaurants seek solutions for higher labor costs

By Annie Gasparro
Job cuts may not be on the table but other cost reductions and higher menu prices are, as restaurants look for ways to protect their profits under threat from health-care regulations and proposed higher minimum wages.

Despite some earlier political noise, most restaurants are saying they don’t plan to cut employees’ hours as a way to skirt repercussions of the Affordable Care Act. Instead, chains like Chili’s Grill & Bar, Olive Garden and Panera are turning to kitchen remodels, better staff scheduling and higher menu prices to make up the difference.

Brinker International Inc., the owner of Chili’s Grill & Bar, said labor costs are the industry’s biggest concern. Chili’s recently renovated its kitchens, to prepare food faster at a lower cost.