How do you compute labor cost percentage and what strategies reduce it without sacrificing service quality?

• A. Labor cost percentage = total labor cost / total sales; strategies: scheduling optimization, cross-training, productivity standards, leveraging technology, predicting demand, reducing overtime.
• B. Labor cost percentage = total labor cost / total meals served.
• C. Labor cost percentage equals total labor cost.
• D. There is no way to reduce labor costs.

Answer: (A)