Food Costs Down, Labor Up in 2016

An analysis by the consulting firm BDO found food costs went down for publicly traded restaurants in 2016, but labor costs jumped in the same year, Nation’s Restaurant News reports.

As commodity prices tumbled after reaching record highs, restaurants saw their cost of sales fall 0.6% to 29.1% of revenues last year, BDO found. But labor as a percentage of sales increased 0.8% to 30.5% in 2016, more than offsetting the savings on commodities and driving up restaurants’ overall prime costs by 0.2%. read more – http://www.pmq.com/April-2017/Food-Costs-for-Restaurants-Went-Down-in-2016-but-Labor-Costs-Jumped-Higher/