All articlesWhat your labor cost percentage is really telling you
Labor cost as a share of sales is the number every owner watches. Here is how to read it week by week instead of month by month.
Labor cost percentage compares what you spend on hours with what you sell. Most owners look at it once a month, when it is too late to change anything.
Look at it per day
A monthly average hides the problem days. A quiet Tuesday with full staffing and a packed Saturday with too few people can average out to a healthy number.
Compare scheduled and actual
The gap between the hours you planned and the hours people clocked tells you where the rota does not match reality. Late finishes, early starts and unplanned overtime all show up there first.
Try it on next week's rota
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