Restaurant Labor Costs Calculator
This free restaurant labor costs calculator helps you monitor wages, total hours worked, and labor cost as a percentage of sales. Built for restaurant managers who want better payroll visibility and control over scheduling costs. With clear formulas and editable fields, this Excel labor costs calculator makes it easy to optimize staffing while protecting your bottom line.
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What Is a Restaurant Labor Costs Calculator?
A labor costs calculator is typically an Excel spreadsheet that helps restaurant managers calculate total their labor costs—including hourly wages, salaried staff, and overtime—relative to sales. It’s a key tool for managing restaurant budgets and ensuring labor stays within healthy margins.
Why Track Labor Costs of a Restaurant?
Labor is one of the biggest expenses in a restaurant. Using a labor costs calculator helps managers avoid overstaffing, identify high-cost periods, and improve scheduling efficiency—ultimately boosting profitability.
How to Calculate Labor Cost Percentage?
When using a labor costs calculator, it divides total labor costs (wages + benefits + taxes) by total sales, giving a labor cost percentage.
The formula in its simplest way is: Labor Cost % = (Total Labor Cost ÷ Total Sales) × 100.
For example, a restaurant with daily labor costs of $2,500 and total sales of $8,700 would have labor costs percentage of 28.73%.
A benchmark most restaurants aim to keep labor costs between 25% and 35%.
