Benchmarks labor expense as a share of franchise sales.
Labor cost — Cost per unit. Includes direct expenses; verify with invoices for accuracy. Example: 0.1.
Labor cost is required
sales — Business metric. Affects cost, margin, or break-even; validate against recent data. Example: 0.101.
sales is required
Benchmarks labor expense as a share of franchise sales.
Formula
laborRatio = laborCost ÷ sales