Why 'CPLH' is a crucial metric for the front of house, 'SPLH' is crucial for the back of house -> And the risks associated with both.

Thank you to all of our sponsors who keep this article flowing every week.

Hatch Insights equips restaurateurs with the critical reporting and analytics necessary to stay competitive and enhance operational efficiency, for as little as $2 per day.

Click Here for Clear. Actionable. Insights -> In less than one minute.

Because your team doesn't have time for anything more.

BlackFox | Restaurant Daily Cash-Out Application | Restaurant Daily Cash-Out Application helps the back of house with Tip Pooling. Are you managing two different tip distribution spreadsheets for the FOH and BOH?

BlackFox expanded our existing tip management features, providing advanced features to manage tip pools. Manage Tips for Teams of People, Track Crew Hours, Multiple Tip Distribution Strategies. Faster, Simpler, Better!

As a special thank you, for reading this article every week, I would like to invite you to gain FREE ACCESS to a webinar that I will be participating in with Push Operations on September 26th in collaboration with Clearview Restaurant Management Software , Deliverect and Benchmark Sixty Restaurant Services .

We will be discussing how to "Navigate The New Normal of Restaurants." and you can gain your FREE access by clicking HERE

Now on to why CPLH and SPLH are essential to the success of your restaurant.

Why "Covers Per Labor Hour" is Critical for Front of House Operations

"Covers per labor hour" (CPLH) is a key metric for front-of-house (FOH) restaurant operations. This metric measures the number of guests served relative to the number of labor hours worked by FOH staff like servers, hosts, and bartenders.

Monitoring CPLH is crucial because it directly influences the customer experience, the employee experience, and the operational efficiency of the restaurant.

Find out why this is the most important metric in the restaurant industry HERE

A high CPLH suggests that staff are efficiently handling guests, seating them promptly, and turning over tables at an optimal pace. This contributes to greater profitability since fewer labor hours are needed to serve each guest. When managed well, it leads to better service flow, minimized wait times, and satisfied customers.

It is also the most powerful metric for managing front-of-house labor cost %.

And if you want me to show you why, just email me at jim@benchmarksixty.com

However, there are risks associated with overly high CPLH. If the restaurant pushes for too high a rate, staff may be stretched too thin. This could result in rushed or poor-quality service, frustrated guests, and increased employee burnout. It’s essential to strike a balance between efficiency and the level of personalized service guests expect.

On the flip side, a low CPLH indicates inefficiencies such as overstaffing, poor coordination, or slow table turnover. This drives up labor costs and erodes profit margins without any corresponding benefit to guest experience. In such cases, FOH managers must reassess staffing, training, and service strategies to bring CPLH in line with revenue goals.

Im telling you, implementing a CPLH strategy will dramatically change your labor model almost overnight.

And I have lots of examples to share with you HERE.

Why "Sales Per Labor Hour" Matters for Back of House Operations

In back-of-house (BOH) operations, "sales per labor hour" (SPLH) is the metric that measures how much revenue the kitchen generates relative to the labor hours worked by chefs, line cooks, dishwashers, and other kitchen staff.

Tracking SPLH helps determine whether kitchen staff are efficiently producing food in a way that supports the restaurant’s profitability goals.

Find out why this is the most important metric for your kitchen right HERE

A high SPLH indicates that the kitchen is operating efficiently, producing high volumes of food while minimizing labor costs. This boosts the restaurant’s overall profit margins, as revenue per hour of labor increases.

However, pursuing too high an SPLH can be risky. Overemphasis on speed and efficiency may result in cutting corners, leading to lower food quality or presentation standards. This could damage the restaurant’s reputation and reduce repeat business. High SPLH can also signal an understaffed kitchen, which increases the risk of errors, food safety issues, and employee fatigue, ultimately compromising the guest experience.

Conversely, a low SPLH suggests that the kitchen is not generating enough revenue for the amount of labor invested. This could be due to inefficient workflows, excessive staffing, or slow food production times. In such cases, BOH managers must re-examine kitchen processes, staffing levels, and menu pricing to improve profitability without sacrificing quality.

The Balance Between Efficiency and Quality

Both CPLH and SPLH are critical metrics for restaurant operations, but they come with risks if not managed carefully. An overemphasis on efficiency can lead to staff burnout, lower service and food quality, and ultimately, dissatisfied customers. Conversely, inefficient use of labor resources can lead to high labor costs that undermine profitability. To optimize both FOH and BOH performance, restaurant operators must monitor these metrics while maintaining a balance between efficiency, quality, and the overall guest experience.

Until next week.

Jim

👊

Oh and one more thought...

Whenever you are ready here are a few other ways I help restaurateurs every day.

• If you are a restaurant operator or owner who realizes that increased productivity, improved employee workload, and lower turnover are the only responsible ways to succeed in our industry these days... I've got you covered. Let's connect for a discussion. DM me at Jim Taylor, email me at jim@benchmarksixty.com or you can even text me at 6047898991.

• If you are a consultant, or service provider to the restaurant industry and you are wondering how to create opportunity, looking to build your business in 2024, or find it to be lonely as a solo-preneur there is a place for you, I have been in your shoes, and I would love to meet you. Send me an email at Jim@benchmarksixty.com and use the subject line "solo-preneur".