Restaurant Labor Cost Calculator
Calculate total labor cost as a percentage of revenue and compare to targets.
Optimize staff scheduling based on sales projections.
Formula
Total Labor = Hourly Wages + Salaried + Overtime Premium + Payroll Tax (7.65%) + Benefits. Labor % = Total Labor / Sales x 100. Prime Cost = Food Cost + Labor Cost.
Frequently Asked Questions
What is a good labor cost percentage for a restaurant?
Most restaurants target 25-35% labor cost. Quick service restaurants aim for 25-28%, casual dining 28-32%, and fine dining 30-35%. Combined with food cost, your prime cost (food + labor) should be under 65% of sales.
How can I reduce restaurant labor costs?
Key strategies include cross-training staff, using sales forecasting for scheduling, reducing overtime, implementing prep schedules, investing in labor-saving equipment, and tracking labor cost in real-time with POS analytics.
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