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All operatorsLabor and scheduling

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

  1. Pick a target labor percent for your business type and margin
  2. Each morning, divide yesterday's labor dollars by yesterday's sales
  3. Post the number where managers see it
  4. If two days run over target, review the next week's schedule
  5. Look at the hour blocks driving the overage, not the whole day

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