10 formulas for labor cost and productivity
- Labor cost % = labor cost / sales x 100.
- Sales per labor hour = sales / labor hours.
- Hours per check = shift hours / checks.
- Labor cost per check = shift labor cost / checks.
- FOH productivity = dining room sales / FOH hours.
- BOH productivity = covers or plates / BOH hours.
- Management ratio = supervisor hours / total hours.
- Overtime cost = overtime hours x incremental pay rate.
- Scheduling variance = scheduled hours - needed hours.
- 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.