Labor Cost Optimization & Productivity Ratios

Labor Cost % = (Total Payroll + Benefits) / Total Sales. Match floor and kitchen staffing strictly to sales forecasts to prevent over-staffing during slow lunch shifts.

Track SPLH (Total Sales / Total Labor Hours Worked). Aim for $85-$120+ SPLH in full-service dining to ensure maximum shift productivity.

Every hour worked past 40 in a week is overtime, typically paid at 1.5x the regular rate — an unplanned liability that erodes labor cost targets fast if it goes unnoticed. Department heads control it by watching live clock-in/clock-out alerts through the day rather than discovering the overage on payroll day, when it's too late to adjust the schedule.