Labor ratio

43
6
Joined Apr 15, 2019
Am I correct to understand that BOH labor should be in the range of 1/3 food revenue? I’m fairly new to this angle of the business. My primary concern is that I don’t want to get pushed into compensating for FOH labor. Any advice on this is appreciated. Thank you.
 
4,565
793
Joined Aug 21, 2004
Labor costs for an entire operation (not just BOH) usually fall in the 29-33% range. Keep in mind that labor cost are more than just wages. You should also calculate in benefits, salaries, PTO, payroll taxes, etc.
 
43
6
Joined Apr 15, 2019
So I guess my next question is what should I accept as my obligation? I have no control over any labor except BOH, I have no control over any revenue except food revenue. It seems my obligations should be defined within those parameters.
 
978
211
Joined Jun 23, 2015
Ask you boss what he/she expects your labor cost to be. Also how to calculate that cost
 
4,565
793
Joined Aug 21, 2004
Ask boss how they determine labor costs, what all is calculated into deriving the costs? What projected labor cost is? Of that cost what is the ratio breakdown between FOH/BOH/management? What percent of that cost is designated for BOH? Is labor cost derived from operating costs or revenue? Is the same formula used consistently each time it is calculated?
 

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