A recent Progressive Grocer article, by Paul DelFino of Opportunity Inc., goes into great detail regarding a subject near and dear to our hearts. That subject is Labor Productivity and Forecasting. More importantly, it gets to the heart of the matter that calculating labor requirements based on sales per man hour or labor percent of sales is probably not in the best interest of your customer or your profitability.
The way to truly understand labor costs and provide great customer service can be achieved through Activity Based Labor Modeling. This process, as evidenced by the case study in the article, will give your operations the insight they need to be able to effectively manage labor costs and achieve the customer service standards laid out in your organization's mission statement.
Check out the article in Progressive Grocer here.