Restaurant Labor Cost Calculator

Enter labor dollars and sales to get your labor cost percentage. Add your food cost % to see prime cost — the number most operators watch.

Total sales for the period ($)

Hourly + salaried wages ($)

Payroll taxes & benefits ($)

Employer taxes, insurance, and benefits count toward labor.

Food & beverage cost % (optional)

For prime cost. Get it from the food cost calculator.

Total labor

$—

Labor cost %

—

Prime cost %

—

Labor is the lever you control shift to shift. Forecast and schedule against sales with scheduling software.

Labor cost and prime cost benchmarks

Labor cost % is total labor divided by sales. Full-service restaurants often run 30–35%; quick-service tends to run lower because the menu and workflow are simpler.

Prime cost — food and beverage cost plus total labor, as a share of sales — is the single number most operators manage to. A widely used target is at or below 60%. Above that, there's little left for rent, utilities and profit.

What to include in labor

All hourly and salaried wages, including management.
Employer payroll taxes.
Benefits, insurance, and paid time off.