Sales per labor hour is a critical metric to track, as it helps you measure how efficient your restaurant staff are at generating revenue. It can help you decide how much to pay your staff based on revenues and labor costs, as well as gain insight into individual employee performance. It is calculated by dividing the total sales earned during a given period by the number of hours worked. You can calculate hourly, daily, weekly or monthly sales per labor hour.

You can use a tool like 7shifts weekly budget tool to track your sales per labor hour alongside your POS data and see how you are doing. A higher SPLH generally indicates that you are using your staff efficiently, but it is also important to consider customer service and overall employee morale in addition to productivity.

It is common to find that a business has a low sales per labor hour, but this could have several reasons. It might indicate that you are overstaffed, resulting in poor customer service, or it might be that your team is not very productive, causing you to lose sales and profit. Alternatively, it could mean that you are missing a key opportunity to upsell to customers, so it is important to regularly review your sales per labor hour and identify any areas where you need to improve. You can then make changes to your strategy accordingly.