SPLH (Sales per Labour Hour)

SPLH stands for Sales per Labour Hour. It measures the amount of sales generated for each labour hour worked during a defined period. Restaurants use SPLH to assess labour productivity and to help align staffing with expected demand.

SPLH formula

SPLH = Net sales ÷ Total labour hours worked

Worked example

A restaurant generates $12,000 in net sales during a day and records 300 paid labour hours for the same period.

$12,000 ÷ 300 hours = $40 SPLH.

How managers use SPLH

• Compare productivity by day, shift or daypart.
• Identify periods where staffing may be out of line with demand.
• Forecast labour requirements using expected sales.
• Compare similar locations or service periods.
• Review the effect of menu simplification, production planning or workflow changes.

Limitations

SPLH does not measure profitability or service quality by itself. It can rise because sales increase, labour hours decrease, or both. A high SPLH may still reflect understaffing, excessive workload or poor guest experience. Use the same definition of sales and labour hours every time; decide whether salaried management, training hours, paid breaks and overtime are included.

Chef’s tip: Review SPLH alongside labour cost percentage, covers, average cheque, ticket times and guest feedback. Use daypart-level data to identify specific scheduling opportunities rather than cutting hours indiscriminately.

Key distinction: SPLH measures sales generated per labour hour; labour cost percentage measures labour expense as a share of sales.