Labor Cost Percentage
Total labor expenses (wages, benefits, payroll taxes) as a percentage of sales. QSR benchmarks typically range from 25-35%, varying by service model and automation level.
Related Terms
Prime Cost
The sum of food costs and labor costs, representing the two largest controllable expenses in restaurant operations. Typically targeted at 55-65% of sales in QSR.
Labor Productivity
Sales per labor hour or transactions per labor hour, measuring how efficiently staff time converts to revenue. Key metric for evaluating operational efficiency.
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