Bus rapid transit (BRT) has gained popularity as a cost-effective way of expanding public transit services, and its level of service (LOS) is receiving increasing attention. However, relatively little is known about the precise criteria that can consistently and objectively classify the LOS of BRT into different levels. This paper introduces the measure of “unit delay” to develop BRT LOS criteria, defined as the sum of delays a bus experiences at stops and intersections and on a 100m link. Based on field surveys conducted on BRT in Changzhou, China, we obtained a unit delay data set and established BRT LOS criteria using Fuzzy C-means Clustering. The LOS criteria can be applied for operational, design, and planning analyses for BRT systems. A method to examine the operational conditions in spatial and temporal dimensions and pinpoint the service bottlenecks of a BRT system is presented.