FL Ratio for Restaurants (Ratio of Food Cost and Labor Cost to Total Sales)
The FL ratio is an indicator of the proportion of food costs and labor costs relative to sales; F stands for Food (food costs), and L stands for Labor (labor costs).
What is the target FL ratio for restaurant management? While it varies by business type, the average is said to be between 55% and 65%. Let’s start by aiming for an FL ratio of 55%.
Note that the labor costs referred to here are calculated based on total labor expenses, which include not only monthly salaries but also bonuses and various employee benefit costs.
Note that the labor costs referred to here are calculated based on total labor expenses, which include not only monthly salaries but also bonuses and various employee benefit costs.
| FL Ratio | % |
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