Blue Ridge Technologies
Free Restaurant Labor Cost Calculator
See labor cost vs. sales by day, week, bi-week and month, then check how you stack up against a profitable restaurant in your category.
1. Your numbers
2. Your results
Enter your net sales and labor pay to see results for every period.
3. How you compare to a profitable restaurant
Your comparison appears here once you enter your numbers.
How to calculate restaurant labor cost percentage
Labor cost % = (hourly wages + salaries + payroll taxes & benefits) ÷ net sales × 100. Use the same period for both numbers. For example, $9,000 in total labor on $30,000 in sales is a 30% labor cost.
Track it daily to catch overstaffed shifts, weekly to adjust schedules, bi-weekly to match payroll, and monthly to see the trend. Labor is usually your biggest controllable expense, and together with food and beverage cost it makes up your prime cost.
Frequently asked questions
What is a good labor cost percentage for a restaurant?
Most profitable restaurants keep labor between roughly 25% and 35% of sales. Quick service and bars tend to run lower, while full-service and fine dining run higher.
How do you calculate restaurant labor cost percentage?
Add wages, salaries, payroll taxes and benefits for the period, divide by net sales for the same period, and multiply by 100.
How can a POS system help control restaurant labor costs?
A restaurant POS with timekeeping and real-time reporting lets you see sales and labor side by side during the shift, so you can adjust staffing before costs run over. Blue Ridge Technologies installs and supports Genius POS across South Florida.
Also try our free Plate Costing & Menu Price Calculator.
Benchmarks are general industry ranges for education only, not guarantees. Results vary by market, minimum wage, concept and volume. Questions? Call 954-969-4911 or email sales@blueridgepos.com.