A publican worked out after six months that his afternoon shift covered its costs and contributed nothing, because nobody had put labour spend next to till sales for that session. The week looks profitable. Two of the sessions in it are carrying the rest.
Uses true employment cost including the 15 per cent employer National Insurance, pension and holiday accrual, not the hourly rate. Nothing is uploaded.
Doing it after the fact tells you what happened. Doing it on Monday, against forecast sales, tells you what to change while you still can. We are building something that does the second one.
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Employment costs use the current National Living Wage, employer National Insurance and minimum pension contribution. Your actual cost depends on age bands, thresholds and any enhanced pension, so your payroll figure will differ a little. The contribution figure is an estimate built on the gross profit you entered.
True hourly cost adds holiday accrual at 12.07 per cent, employer National Insurance at 15 per cent above the threshold, and pension at 3 per cent. It is simplified, and does not account for apprentice rates, staff under 21, or anyone earning below the NI threshold across the year. Contribution uses your blended gross profit on every session, which will be slightly generous for drink-led sessions and slightly harsh for food-led ones.
Around 29 per cent more than the hourly rate. On top of the rate you pay holiday accrual at 12.07 per cent, employer National Insurance at fifteen per cent above the threshold, and pension at three per cent. An employee on the National Living Wage of £12.71 costs the business £16.42 an hour.
Wages typically account for around thirty one per cent of revenue across UK hospitality. Above thirty five per cent is a warning sign at site level. Individual sessions vary widely, and a session running above forty per cent will usually tip into losing money on a quiet week.
Not necessarily. Fixed costs such as rent run whether you open or not, so a session making any contribution is usually better than closing. The more common fix is trimming hours at the edges of the session rather than closing it, and checking whether the same customers also come at busier times before removing a reason for them to visit.