If you want to calculate your labor rate for each day in the schedule, read on.
What are labor rates?
Labor rates are a common metric used by restaurants and retail stores in particular to help managers understand the financial health of their business.
Labor rate data is often used to assess whether labor costs are too high or too low compared to the amount of sales coming in.
How to calculate your labor rate.
To calculate your labor rate, take your payroll expenses, divide it by your sales and then multiply it by 100. See the example below.
Labor rate = (payroll expenses) ÷ (sales) x 100.
With this simple equation you can calculate your labor rate per year, quarter,
month, week, day and even hour.
Example:
Restaurant Workfeed's labor rate on a given day.
Payroll expenses on the day: $4,677.50 | Revenue on the day: $24,000.
(4,677.50) ÷ (24,000) x 100
Labor rate = 19.49%
How to enable labor rate
Click on the '👁' icon at the top right of the schedule.
Turn on salary, labor percentage and sales.
Now enter your revenue under the relevant days and your labor rate will be calculated automatically.
