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I think you might be making a fundamental assumption that quality of each hour of the day is the same.
Maybe for a particular business it does not matter, they just need an employee on the clock to cover time that customers may come in, but I think many businesses have tried this out, and found that they get about as much from their employees in 32 hours as they do in 40 hours.
I think it helps to give people time to rest and deal with life so that they can be more focused and thoughtful when they are with you.
In manufacturing, there is a piece rate for every SKU. At places I have worked this is a very carefully tracked number, as it will inform the production rate which will then affect inventory. A gain of 20% would be extremely major.
If this ends up working out, awesome. I just fear that cost of living has risen so much lately and this will be weaponized into yet another excuse to charge consumers more. "Of course we have to charge more, our workers are here less!"
You're assuming that labor is 100% of operational costs which, especially to a business like you're describing, is very very far from reality.