Set a labor percentage target and track it daily
The problem
Labor cost is only checked at payroll, when it is too late to fix.
Steps
- Pick a target labor percent for your business type and margin
- Each morning, divide yesterday's labor dollars by yesterday's sales
- Post the number where managers see it
- If two days run over target, review the next week's schedule
- Look at the hour blocks driving the overage, not the whole day