ABSTRACT
The factors which influence labour costs are numerous but probably what determines labour cost more than anything else is the precise nature of the enterprise, and the employer's particular policy. A fast food take-away operation or a wine bar may operate with a labour percentage of around 15 per cent, whereas a high class restaurant offering skilled personal attention may need to operate at around 35 per cent labour cost. Trade unions influence rates and labour costs in a number of ways. Many catering employees' rates are determined along with those rates which unions have negotiated for another industry's primary workers such as motor manufacturers' or warehouse staff. Most organizations however will monitor labour costs on a shorter-term basis, monthly or maybe even weekly, with many of the fast food outlets now planning labour on an hourly basis. This chapter describes the principal approaches to measuring productivity.
