3Chapter 3 of 5

Labor cost and productivity

50 Essential Restaurant Formulas — by PlatePlatform


10 formulas for labor cost and productivity

  1. Labor cost % = labor cost / sales x 100.
  2. Sales per labor hour = sales / labor hours.
  3. Hours per check = shift hours / checks.
  4. Labor cost per check = shift labor cost / checks.
  5. FOH productivity = dining room sales / FOH hours.
  6. BOH productivity = covers or plates / BOH hours.
  7. Management ratio = supervisor hours / total hours.
  8. Overtime cost = overtime hours x incremental pay rate.
  9. Scheduling variance = scheduled hours - needed hours.
  10. Training index = repeated mistakes / onboarding hours.

Labor is rarely fixed. Once you measure it by daypart and shift, scheduling becomes a margin lever instead of a monthly surprise.