Definition
The staff cost ratio indicates the proportion of staff costs to total revenue and is one of the most important metrics in the restaurant industry.
Background & relevance for restaurant operators
A healthy value in the restaurant industry is between 30 and 40%. Together with cost of goods, it forms the so-called Prime Cost (ideally under 65%). Digital tools like automatic order intake, self-order terminals, and KDS can reduce the staff cost ratio without compromising service quality.