Labour management for a restaurant using data envelopment analysis

One of the major expense categories for restaurant businesses is wages due to intensive labour requirements. We select a family gourmet restaurant located in the Northwest in the USA and analyse the comparative efficiency of labour using data envelopment analysis (DEA). We measure labour efficiency using pertinent variables and present efficiency changes over time. Based on findings, we propose managerial insights that are helpful for fine tuning labour management from time to time during operating hours. The major contributions of this study are the use of real data and providing a framework for comparative labour efficiency measurement at a restaurant using DEA models.