SyncBite · Free tool
Restaurant Labor Cost Percentage Calculator
Labor cost as a share of sales is the number that makes or breaks your week. Punch in your payroll and your sales for the same period to see where you land and whether you're staffing lean enough.
Your numbers
Wages, payroll taxes, and benefits for the period.
Sales for the same period as the labor cost above.
The percentage you're aiming for. Default 30%.
Your labor cost
Labor cost % of sales
30.0%
Healthy: full-service 30-35%, quick-service 25-30%.
A quick estimate, not accounting advice. Use your actual payroll register and POS sales for the real figure.
How labor cost percentage works
Add up everything you pay your team for the period: wages, payroll taxes, and benefits. Divide that by total sales for the same period and multiply by 100. Full-service kitchens usually run 30-35%; quick-service tends to sit around 25-30%. Climb past 35% and the schedule is heavier than the sales can carry, so trim a shift or grow the top line.
FAQ
What's a good labor cost percentage for a restaurant?
It depends on your format. Full-service restaurants typically run 30-35% because of the extra front-of-house and kitchen hours; quick-service and counter spots usually land around 25-30%. Past 35% your schedule is outpacing your sales, and you'll feel it in the margin.
How do I calculate labor cost percentage?
Take your total labor cost for the period (wages plus payroll taxes plus benefits) and divide it by your total sales for the same period, then multiply by 100. So $9,000 of labor on $30,000 in sales is 30%.
What counts as labor cost?
Everything you pay to staff the place: hourly and salaried wages, overtime, payroll taxes, and benefits like health coverage or paid time off. Use the same period for labor and sales so the percentage is honest.
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