Restaurant Labor Cost Calculator
Enter your sales and labor cost to instantly see your labor cost percentage, how it stacks up to your target, and the sales you'd need to hit your goal. No sign-up, no spreadsheet.
What is restaurant labor cost percentage?
Labor cost percentage is the share of your sales that goes to paying your team. It's the single most-watched number in restaurant operations because labor is one of your two biggest controllable costs (the other is food).
The formula: Labor Cost % = (Total Labor Cost ÷ Total Sales) × 100.
So if you spent $4,000 on labor in a week that did $16,000 in sales, your labor cost is 25%. Track it weekly and you'll catch a problem days — not a month — after it starts.
What's a good labor cost percentage?
There's no single "right" number, but most operators aim for 25%–35% of sales:
- Quick-service / counter-service: ~25–30% (less table service labor)
- Full-service / casual dining: ~30–35%
- Fine dining: often 30–35%+ (higher service ratios, skilled kitchen)
Your real target depends on your concept, menu prices, and market. Pick a number, then schedule to it every week.
Don't forget the "burden"
Base wages are only part of your cost. Your true labor cost adds employer payroll taxes (~7.65% FICA), workers' comp, and benefits — often 15–25% on top of wages. Use the optional "Labor Burden %" field above to see your fully-loaded number, which is what actually hits your P&L.
How to lower your labor cost percentage
- Schedule to a forecast. Build the week against expected sales, not last week's habit.
- Watch it live. See labor cost update as you add each shift, before you publish — not after payroll.
- Fix the peaks and valleys. Trim the slow mid-afternoon; protect your rush.
- Cross-train. One person who can host and bus beats two half-used bodies.
- Sell more per labor hour. Sometimes the fix is sales, not cuts — this calculator shows exactly how much more.
Tired of doing this in a spreadsheet?
ScheduleSizzle shows your live labor cost and labor % as you drag shifts onto the schedule — plus a declining budget that keeps you on target all week. Built by a 19-year restaurant operator.
Start free →Frequently asked questions
How do you calculate restaurant labor cost percentage?
Divide total labor cost by total sales for the same period, then multiply by 100. Example: $4,000 labor on $16,000 sales = 25%.
What is a good labor cost percentage for a restaurant?
Most restaurants target 25%–35% of sales. Quick-service runs lower (25–30%), full-service and fine dining higher (30–35%). Your target depends on concept, menu prices, and market.
Should labor cost include payroll taxes and benefits?
For a true number, yes. Add employer payroll taxes (~7.65% FICA), workers' comp, and benefits on top of wages — often 15–25% more. That fully-loaded figure is your real cost of labor.
How often should I check labor cost percentage?
Weekly at minimum, and ideally as you build each schedule. Checking after payroll is too late to change anything; checking as you schedule lets you adjust before the shifts happen.