Description: Learn how to run a Labor Productivity report on Business Intelligence (BI).
Labor Productivity Report Guide
The Labor Productivity report is a valuable tool for controlling labor costs.
To access the report, log in to Business Intelligence and select Labor/Payroll > Labor Productivity.
Understanding the Report Columns
The first 3 columns display:
- Sales
- # Guests
- # Tickets
The next three columns help determine your labor costs:
Lbr/Hrs (Labor Hours)
This column shows how many employees were on the clock during the selected time period.
When running the report by hour:
- A value of 11.57 indicates approximately 12 employees were on the clock.
- A partial number represents a portion of an employee’s hours worked.
Lbr $ (Labor Dollars)
This is the total dollar amount of labor used during the selected time period.
Important: Each employee must have an assigned wage in the POS system. Missing wages will cause the labor percentage to be inaccurate.
Lbr % (Labor Percentage)
This represents labor cost as a percentage of sales.
Formula:
Lbr $ ÷ Sales $
Tips for Reducing Labor Costs
Based on years of experience, here are some common opportunities to reduce labor:
A. Opening Labor
Restaurants often schedule too much opening (prep) labor. Review early hours for potential reductions.
B. Mid-Afternoon (2:00–5:00 PM)
Employees may remain on the clock after the lunch rush when they could be sent home.
C. Closing Labor
Ensure the correct number of employees are scheduled for closing.
Example savings:
- Cutting 3 labor hours per day
- At $15/hour average wage
- 3 × $15 = $45 per day
- $45 × 7 days = $315 per week
- $315 × 52 weeks = $16,380 per year
Small adjustments can result in significant annual savings.
Example: Hourly Labor Productivity
In the highlighted hour:
- Lbr % = 48%
- Sales per Hour (Sls/Hr) = $6.78
This indicates labor was disproportionately high compared to sales during that time.
When used consistently, the Labor Productivity report can significantly reduce labor costs and improve operational efficiency.
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