Reading labour percentage
A rising labour % with flat sales often means rostering or productivity needs review. A falling % with collapsing service quality is not a win.
These calculators use standard restaurant maths for education. They are not accounting, tax or legal advice — confirm important decisions with your accountant or adviser.
Frequently asked questions
How do you calculate restaurant labour cost percentage?
Labour cost % = total labour cost ÷ revenue × 100. This tool estimates labour as (staff × average pay) + benefits for the month.
Should overtime be included?
Yes, if it is material. Put overtime and allowances into benefits/extras or raise average pay so the percentage reflects reality.