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Your Labor Cost Percentage is Lying to You

1reports1reporting sources2026-08-06Update

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Provides more effective labor management metrics for the restaurant and hospitality industry, helping operators move from reactive to proactive management and optimize staffing.

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8月6日
  1. Hospitality Technology
    Your Labor Cost Percentage is Lying to You

    Author Jim Taylor argues that labor cost percentage is a lagging indicator that misguides operators. He recommends using covers per labor hour (CPLH) and sales per labor hour (SPLH) as predictive metrics. BLS data shows Q4 2025 wages rose 6.3% but output only improved 1.8%. Adding staff can sometimes lower labor cost percentage, as in Chili's investment case.