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Labour cost percentageWhat it means, in plain English

Labour cost percentage is total labour cost divided by revenue for the same period, expressed as a percentage. It is the headline efficiency metric in hospitality and retail, where operators commonly aim for somewhere between 25 and 35 percent depending on the business model. Tracking it against the rota before the week is worked, rather than after payroll, is what lets managers adjust shifts in time to protect margin.

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