Labor vs Net Sales

The Labor vs Net Sales report helps you understand how efficiently your store is staffed by comparing labor costs against revenue. This page is designed to support daily staffing decisions, identify peak sales hours, and help control labor spend.

What This Report Shows

At a high level, this report answers one core question:

Are labor costs aligned with sales for the time period selected?

It combines employee time tracking with sales data to give you a clear view of performance.

Summary Metrics (Top of Page)

Net Sales

• Definition: Total sales after discounts, comps, and refunds.
• This reflects the actual revenue your store generated during the selected time range.

Labor Costs

• Definition: Total labor cost for all clocked-in employees.
• Labor costs are calculated using:
  • Employee compensation entered in Teams and Roles
  • Clock-in and clock-out times recorded in Joe

Only employees who are clocked in during the selected time period are included.

Important: Keeping compensation up to date in Teams and Roles is required for accurate labor reporting.

Labor Percentage

• Definition: Labor costs expressed as a percentage of net sales.
• Formula:
  Labor Costs ÷ Net Sales = Labor %

This metric provides a quick snapshot of staffing efficiency.

Hourly Labor vs Net Sales Chart

The chart breaks down performance hour by hour, showing:

• Net Sales per hour
• Labor Costs per hour

This view helps you:

• Identify peak sales windows
• Spot overstaffed or understaffed hours
• Adjust schedules to better match demand

Hover over any bar to see exact dollar values for that hour.

Detailed Breakdown Table

Below the chart, you’ll find a detailed table that provides a more granular view of labor and sales by hour.

Information Icon Description:

This table shows a detailed breakdown of labor costs and net sales by hour, allowing you to review staffing efficiency and sales performance at a deeper level.

Use this table when you want to:

• Review specific time blocks
• Validate staffing decisions
• Understand how labor spend changes throughout the day

Benchmark Guidance (Coffee Shop Industry)

While every shop is different, the ranges below are commonly used as healthy labor benchmarks for coffee shops:

• 20–25% Labor %
  Lean and efficient staffing. Often seen during strong sales periods or well-optimized schedules.
• 25–30% Labor %
  Healthy and sustainable for most coffee shops. This is a common target range.
• 30–35% Labor %
  Acceptable during slower periods, training shifts, or intentional overstaffing.
• 35%+ Labor %
  Indicates potential overstaffing or low sales volume. Review schedules and peak-hour alignment.

Use these benchmarks as guidelines, not strict rules. Context such as location, service model, and volume matters.

Common Questions

Why doesn’t labor look accurate?
Check that employee wages are correctly entered in Teams and Roles and that staff are clocking in and out properly.

Can I use this for scheduling decisions?
Yes. This report is especially useful for adjusting future schedules based on historical sales patterns.

Summary

The Labor vs Net Sales report gives you a clear, actionable view of how labor spend compares to revenue. By reviewing this page regularly, you can make smarter staffing decisions, control costs, and improve overall store efficiency.