Which metric best describes the efficiency of a store's labor costs?

Labor percentage is the metric that best describes the efficiency of a store's labor costs. This indicator measures the total labor expenses as a percentage of total sales, providing a clear view of how labor costs relate to revenue generated. By monitoring labor percentage, management can assess whether they are utilizing their workforce efficiently in relation to sales volume. A lower labor percentage generally indicates better efficiency, as it suggests that the store is achieving higher sales with proportionately lower labor costs.

In contrast, food cost primarily measures the cost of inventory used to produce menu items and does not directly reflect labor efficiency. Delivery time gauges the speed of service but does not account for the costs associated with labor. Order accuracy focuses on how well orders are fulfilled according to customer specifications, which is important for customer satisfaction but does not provide insight into labor cost management. Therefore, labor percentage stands out as the critical metric for evaluating labor cost efficiency in a store.