In your cafe/coffee business, you want good people working with you and you want to pay them properly, but the cost of wages can kill those good times real quick – for you, anyway.
So what should you aim for?
The short answer is that labour should cost 30% of sales. The slightly longer answer is that it can vary anywhere between 25-35% depending on how many hours the owners work on shift, how many items are made from scratch (vs bought in) and how long the business has been trading.
When I say labour cost, I also mean everything that is attached to paying staff: Wages, superannuation, worker’s comp insurance. Try to get these lines grouped together on your monthly Profit & Loss report to make this easier to track (click here for more on that).