Also called Labor cost percentage
Labour cost percentage is total labour cost divided by revenue for the same period, multiplied by 100. A true figure includes employer on-costs, not just gross wages.
The two figures must cover exactly the same days, or the percentage is meaningless. Comparing a monthly wage bill against a four-week revenue figure is a common way to get this wrong.
It varies sharply by format — counter-led venues typically run lower than full-service restaurants, which carry more staff per cover.
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