Restaurant Labor Cost Calculator: Control Your #1 Expense
Labor is likely your biggest cost. Use our calculator to determine your exact Labor Cost Percentage and see if you are overstaffed or underpriced.
Profit Advisor
Online
Answer a few quick questions...
and I’ll calculate how much third-party delivery platforms are costing your restaurant each year.
Disclaimer: The figures provided by this Profit Leak Calculator are estimates based on your inputs and industry averages. They are for informational purposes only and do not constitute financial advice. Actual results may vary.
Why Track Labor Cost Percentage?
With rising wages and staff shortages, labor cost is the profit killer for most restaurants in 2026. If your labor cost exceeds 30-35% of sales, you are likely bleeding profit.
Our Profit Leak Scan doesn’t just look at commissions; it analyzes your operational efficiency. Use this calculator to benchmark your labor spend against industry standards.
How to Lower Labor Costs
- Optimize scheduling based on sales forecasts.
- Cross-train staff to run leaner shifts.
- Implement technology (QR codes, Kiosks) to reduce front-of-house labor.
Frequently Asked Questions
What is a good labor cost percentage?
For most full-service restaurants, 30-35% is the target. Quick-service restaurants (QSR) aim closer to 25%. If you are above these numbers, you need to audit your scheduling.
How do I calculate labor cost?
Total Labor Cost (Wages + Taxes + Benefits) ÷ Total Sales = Labor Cost Percentage.