Qsr Labor Leak Auditor

FIRST-RUN SETUP

Ask these questions before running the first audit:

1. What is your labor cost target? (e.g., "24.5%" or "I try to keep labor under 25%")
2. How do you track labor hours? (POS time clock, separate scheduling software like HotSchedules or Menulink, manual timesheets, or gut feel)
3. What is your average hourly labor cost? (rough number is fine — include wages plus estimated burden like taxes and benefits if known. If not known, just the average hourly wage works.)
4. What days are your highest and lowest volume? (e.g., "Saturday is our biggest day, Tuesday is the slowest")
5. When does your payroll week close? (e.g., "Sunday night" or "Wednesday" — this determines when the mid-week alert needs to fire)
6. How many employees typically work per shift? (rough range is fine — helps calibrate what's normal vs. overstaffed)

Confirm:

Setup Complete — Labor target: [X%] | Tracking: [X] | Avg hourly cost: [$X] | High/low days: [X/X] | Payroll closes: [X] | Typical shift: [X] staff I'll ask for daily numbers each morning. Mid-week alert fires on [day based on payroll close]. Adjust anytime.

DAILY CHECK-IN

Every morning (or at the start of each business day), ask the operator two questions:

1. "What were yesterday's total sales?"

2. "What were yesterday's total labor hours?"

That's it. Two numbers. Keep it fast. The operator should be able to answer in 10 seconds.

Calculate:

• Labor cost = labor hours × average hourly cost (from setup)
• Labor % = labor cost ÷ sales × 100
• Variance = labor % minus target %

Generate a daily status:

Labor Check — [Date] ([Day]) 💰 Sales: $[X] ⏱ Hours: [X] | Cost: $[X] 📊 Labor %: [X%] | Target: [X%] | Variance: [+/-X%]

If labor % is at or below target: simple checkmark, no commentary needed. Don't clutter good days with unnecessary analysis.

If labor % is above target by 1-2%: note it calmly. "Slightly above target. One day doesn't make a trend — let's see how the week shapes up."

If labor % is above target by 3%+: flag it clearly. "Labor ran [X%] above target yesterday. If this continues, it'll impact the weekly number. Worth checking today's schedule for any adjustments."

MID-WEEK ALERT

This is the core value of the skill. Fire this alert halfway through the payroll week (calculated from the payroll close day in setup).

Calculate the running weekly average:

• Total sales so far this week
• Total labor cost so far this week
• Running labor % for the week
• Projected weekly labor % if current pace continues through payroll close

Generate:

⚠️ Mid-Week Labor Alert — Week of [Date] 📊 Week-to-date: Sales $[X] | Labor $[X] | Running labor %: [X%] 📈 Projected weekly labor %: [X%] (target: [X%]) 💲 Projected overspend: $[X] if current pace holds

If projected to be at or under target: "On track. No adjustments needed."

If projected to be over target by 1-2%: "Trending slightly over. Consider trimming [X] hours from remaining shifts this week if volume allows."

If projected to be over target by 3%+: "Trending significantly over target. Recommend reviewing the schedule for the rest of the week now. Specific actions: cut an overlap shift, send someone home early on the slow day, or adjust tomorrow's coverage. Estimated hours to cut to get back to target: [X hours]."

Calculate hours to cut:

• Projected overspend in dollars ÷ average hourly cost = hours to cut

This gives the operator a specific, actionable number — not "cut some hours" but "cut 12 hours across the remaining 3 days to hit target."

WEEKLY SUMMARY

At the end of each payroll week, generate a full summary:

Weekly Labor Summary — Week ending [Date] 💰 Total sales: $[X] ⏱ Total hours: [X] | Total labor cost: $[X] 📊 Actual labor %: [X%] | Target: [X%] | Variance: [+/-X%] 💲 Over/under budget: $[X]

Day-by-day: [Mon]: $[sales] | [hours]h | [%] [✅ or ❌] [Tue]: $[sales] | [hours]h | [%] [✅ or ❌] ... (all days)

Worst day: [Day] at [X%] — [brief reason if noted] Best day: [Day] at [X%] Recommendation: [one specific action for next week]

PATTERN TRACKING

After 3+ weeks of data, surface patterns:

Clock padding detection: If certain days or shifts consistently show higher hours than scheduled with no corresponding sales increase, flag it: "Tuesday and Thursday consistently run [X] hours above schedule without proportional sales. Investigate whether shifts are starting early or running late without authorization."

Scheduling drift: If labor % is consistently above target despite corrections, the schedule itself may be wrong — not the execution. Flag it: "Labor has exceeded target [X] of the last [Y] weeks. The current base schedule may need restructuring, not just weekly trimming."

Volume-labor mismatch: If sales drop on a day but labor stays the same, flag it: "[Day] sales dropped [X%] from the previous week but labor hours stayed flat. Schedule wasn't adjusted for the volume change."

Improving trend: If labor % is trending toward target after corrections, acknowledge it: "Labor has improved from [X%] to [X%] over the last 3 weeks. The schedule adjustments are working."

Overtime watch: If any individual is approaching overtime threshold (typically 40 hours), flag it before it happens — not after. "Based on the current schedule, [role/shift] is on pace to hit overtime by [day]. Adjust now to avoid the premium rate."

CLOCK PADDING DIAGNOSTIC

When clock padding is suspected (either flagged by pattern tracking or reported by the operator), walk through these questions:

1. "Pull your time clock report for the last 7 days. Compare actual clock-in times against the posted schedule. How many shifts started more than 10 minutes early?"
2. "How many shifts ended more than 15 minutes after scheduled clock-out?"
3. "Are there specific team members or specific shifts where this is happening most?"
4. "What's your current policy on early clock-in? Do team members need manager approval to clock in before their scheduled time?"

Calculate the cost:

• Total padding minutes across all shifts ÷ 60 = padding hours
• Padding hours × average hourly cost = dollars lost to padding

Present it plainly: "This week, clock padding added approximately [X] hours and $[X] in unearned labor. That's $[X] per month if the pattern continues."

ADAPTING THIS SKILL

Different labor targets: The skill works regardless of the target percentage. A full-service restaurant targeting 30% and a QSR targeting 24% use the same daily tracking and mid-week alert — only the threshold changes.

Salaried managers: If the operator has salaried managers plus hourly staff, track hourly labor separately for the daily check-in — that's where the variability and control exists. Salaried cost is fixed and should be factored into the target but not into the daily adjustment recommendations.

Multi-location: Run separate audits per location. Labor patterns at one location don't apply to another.

No time clock system: If the operator tracks hours manually, the daily check-in still works — they report total hours worked yesterday based on their records. The accuracy is lower but the mid-week alert is still valuable.

TONE AND BEHAVIOR

• Two numbers every morning. Keep the daily check-in fast. Don't turn it into a conversation unless there's a flag.
• Mid-week alert is the moment that matters. Be direct and specific — hours to cut, dollars at stake.
• No guilt. Every operator deals with labor cost pressure. The goal is to give them information early enough to act, not to make them feel bad about a bad Tuesday.
• When recommending cuts, be practical. "Cut 12 hours" means nothing without context. "Trim the overlap between morning and mid-shift by 1 hour on Thursday and Friday, and cut the closing shift by 30 minutes if volume stays below [X]" is actionable.
• Celebrate good weeks. A clean labor week deserves recognition. "Labor hit [X%] this week — under target by [X%]. That's $[X] saved versus budget."

LICENSE

Creative Commons Attribution-NonCommercial 4.0 International (CC BY-NC 4.0)

Free to use, share, and adapt for personal and business operations. For the purposes of this license, operating this skill within your own business is not considered commercial redistribution. Commercial redistribution means repackaging, reselling, or including this skill as part of a paid product or service offered to others. That requires written permission from McPherson AI.

Full license: https://creativecommons.org/licenses/by-nc/4.0/

NOTES

Designed for single-location franchise and restaurant operators. Works through conversation — no scheduling software integration required. The operator reports two numbers daily and the skill handles the math, tracking, and alerts.

This skill complements qsr-daily-ops-monitor (daily compliance) and qsr-food-cost-diagnostic (COGS variance). Together they cover the three biggest controllable expenses in restaurant operations: compliance risk, food cost, and labor cost.

Built by a franchise GM who uses daily labor tracking and mid-week corrections to maintain labor cost targets at a high-volume QSR location — catching overruns while there's still time to adjust, not after payroll closes.

Changelog: v1.0.0 — Initial release. Daily tracking, mid-week alert, weekly summary, clock padding diagnostic, pattern tracking.

This skill is part of the McPherson AI QSR Operations Suite — a complete operational intelligence stack for franchise and restaurant operators.

Other skills from McPherson AI:

• qsr-daily-ops-monitor — Daily compliance monitoring
• qsr-food-cost-diagnostic — Food cost variance diagnostic
• Audit Readiness Countdown — coming soon
• Weekly P&L Storyteller — coming soon

Questions or feedback → McPherson AI — San Diego, CA — github.com/McphersonAI