What are labor costs based on in a food service establishment?

Labor costs in a food service establishment are significantly influenced by the experience of the team. Experienced employees often command higher wages due to their specialized skills and knowledge, which can lead to improved service quality and operational efficiency. These factors can ultimately impact the overall customer experience and profitability of the establishment.

While the market level of salary is certainly a contributing factor, it primarily sets a baseline for compensation. Average hours worked relates to the volume of labor but does not directly account for the varying rates associated with different levels of experience. Sales performance metrics can indicate how well the establishment is doing but do not directly affect the determination of labor costs themselves; rather, they can be a consequence of the team's experience and effectiveness. Therefore, the experience of the team is the most directly relevant criterion for understanding labor costs in food service.