ALSTIG INC

What is sales per labor hour (SPLH)?

The productivity check that catches over-scheduling before labor cost percentage can.

Sales per labor hour (SPLH) is total sales divided by total labor hours worked during the same period.

Formula: SPLH = Total Sales ÷ Total Labor Hours

Why SPLH matters even if you already track labor cost %

Labor cost percentage and SPLH measure two different things. Labor cost % asks "is labor too expensive relative to sales?" — but a low labor cost % can come from underpaying staff rather than from running productive shifts. SPLH asks "is each labor hour producing enough revenue?" — which is the productivity question independent of wage levels.

Operators who run both metrics catch over-scheduling earlier. A Tuesday lunch shift with five servers on a slow day might pass labor-cost-% review (because lunch sales are low so the percentage stays in band) but fail SPLH review (because $400 in sales across 20 server-hours is $20/hour — well below the productivity benchmark).

The industry-standard ranges

Below the lower end of your concept's band, the schedule is over-staffed for the volume; above the upper end, the staff is under-resourced and service quality is at risk.

How to calculate SPLH

  1. Pull total sales for the period (typically a shift, a daypart, or a week).
  2. Pull total labor hours for the same period — clocked hours from the POS or scheduling system.
  3. Divide.

Example: $9,200 Saturday dinner sales, 145 total labor hours across all stations. SPLH = $9,200 ÷ 145 = $63.45/hour — solidly inside the full-service casual band.

Common operator mistakes

Related concepts

Defined by Ben Mouton, founder of ALSTIG INC and 14-year restaurant operator. Browse the full restaurant operations glossary or read more articles.