GMROL = Gross Profit ÷ Labor Cost. A GMROL of 2.0 means each dollar of labor generates two dollars of gross profit. Operators use this metric alongside labor cost percentage to assess whether staffing levels are justified by revenue generation. MenuMargin does not calculate labor directly but provides the gross profit data required to compute GMROL once the operator inputs labor cost. The tool flags periods where GMROL falls below a configurable threshold, prompting a staffing or scheduling review.
← Glossary
GMROL
Gross Margin Return on Labor. A productivity metric that measures revenue generated per dollar spent on labor.
Related terms
- Prime Cost — The combined total of food and labor costs, a primary driver of restaurant profitability and operational health.
- Labor Cost Percentage — Total labor expense (wages, payroll tax, benefits) divided by total revenue. A core operating ratio.
- Gross Profit Margin — Revenue minus cost of goods sold, divided by revenue. Expressed as a percentage; the primary menu profitability metric.