What’s a healthy labor cost %?

Full-service restaurants: 28–32%. Quick-service: 22–26%. Fine dining: can climb to 35–40% with high service ratios.

Why include benefits and taxes?

Because gross wages alone underestimate true labor by 18–25% in most European jurisdictions. The honest number is what matters.

How often should I check it?

Weekly. Drift is gradual; spotting a 1–2% creep early avoids a 5% problem at quarter-end.

How do I bring labor % down?

Sharper scheduling against forecast covers, cross-trained staff, fewer admin hours, automated checklists — not cutting hourly rates.

Restaurant Hub

Labor Cost Percentage Calculator

Restaurant labor % vs revenue, with benefits & taxes

Restaurant manager classic: calculate labor cost as a percentage of revenue, with employer-side benefits included.

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Calculate one shift’s labor % — or get live labor vs sales tracking with shift management in Gastro POS Hub.

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Restaurant industry benchmark is 30% labor cost — anything above and your margin starts disappearing. This free Labor Cost Percentage Calculator runs the formula correctly: it adds employer-side benefits and payroll taxes on top of gross wages, then divides by revenue. You get the true labor cost percentage plus an instant rating against the 25/30/35% benchmark tiers and a clear recommendation. Use it weekly to spot creep before it eats your profit, or when planning a new shift schedule.

How to Use

1 Enter total revenue for the period 2. Enter gross wages paid in that same period 3. Enter employer-side benefits and tax % (commonly 18–25%) 4. Read total labor cost, labor %, and rating

Benefits

Adds employer-side benefits + taxes correctly

Industry-standard 25/30/35% benchmark rating

Free, no signup

Useful weekly for FOH/BOH scheduling

FAQ