Stay informed about your labor costs
Free restaurant labor cost calculator template
- Track labor dollars and labor % in one place
- Editable spreadsheet you can customize to your restaurant
- Spot trends fast—and take action to improve your bottom line
Track labor dollars and labor % in one place
Restaurant Labor Cost Calculator Template.xlsx
How to use this restaurant labor calculator template
This spreadsheet helps you log sales and labor, then automatically calculates your daily labor % and monthly totals.
- Best for: owners and managers who want a quick snapshot without setting up software.
- Tip: track daily for visibility, then review weekly to adjust schedules.
1. Fill in your daily sales and labor costs in the empty cells.
2. Add relevant information about each shift in the “Notes” section.
3. Daily Labor % and Month Total will calculate automatically.
4. Evaluate your labor %, spot trends, and make scheduling adjustments.
5. Improve your bottom line by cutting labor on slow sales days.
Track your labor to grow your business
Staying on top of your labor costs is the key to restaurant success. By downloading this labor cost template, you’ll be able to identify new ways to cut your labor costs and make your business more profitable.
Save time and money
If your business is growing, take your labor management to the next level and save $500/month on labor with 7shifts. Easily build staff schedules in minutes, integrate your POS to forecast your labor needs, and monitor your sales and labor performance over time with robust reports. Taking your restaurant’s labor management digital can save your business $1,000s every month and streamline your operations.
That is just one piece of the puzzle
A powerful team management platform like 7shifts has touchpoints across the entire employee experience. From hiring to training to scheduling, paying, and retention—7shifts is the right choice.
Save time and money
Take your business to the next level and save $500/month on labor costs with 7shifts. Quickly build staff schedules , integrate your POS to forecast your labor needs, and monitor your sales and labor performance over time with robust reports. Taking your restaurant’s team management to 7shifts can save your business $1,000s every month.
Find out why 1.5 million restaurant professionals love 7shifts
Frequently asked questions
Restaurant labor cost is the total you spend to staff your restaurant—wages, salaries, payroll taxes, benefits, and overtime—over a set time period.
- What it includes: Hourly wages, salaried pay, employer payroll taxes, benefits, overtime, and bonuses.
- Why it matters: It’s one of your biggest controllable expenses, so small changes can move your profit fast.
- Best practice: Track labor cost in the same window as sales (daily, weekly, or monthly) so your % is accurate.
Start by totaling your labor dollars for a set period, then compare that number to your revenue for the same period.
The labor cost formula:
- Total Labor Cost: Hourly Wages + Salaries + Benefits + Payroll Taxes + Overtime + Other Labor Expenses
- Labor Cost %: (Total Labor Cost ÷ Total Revenue) × 100
Example:
Let’s say you did $900,000 in revenue and spent $275,000 on labor (wages, taxes, and benefits). Your labor cost percentage is (275,000 ÷ 900,000) × 100 = 30.5%.
Most restaurants aim for 25–35%, depending on service style, menu complexity, and local wages.
Here are some estimated average labor cost benchmarks:
- Full-service (fine dining): 30-35%
- Full-service (casual): 25-30%
- Quick-service: 25-30%
Rule of thumb: 30% is a starting point—not a guarantee.
Reality check: A higher % can be fine if your sales, pricing, and staffing model support it.
Tracking labor costs can help:
- Protect margins: Labor is controllable, so it’s often the fastest lever to pull.
- Catch overtime early: Small overruns add up across a week.
- Schedule with confidence: Trends show you when you’re over- or under-staffed.
- Plan ahead: Historical labor % helps you forecast staffing needs.
It’s a budgeting guideline: 30% labor, 30% food cost, 30% overhead, and 10% profit—use it as a starting point, then adjust for your concept.
Start with smarter scheduling, cross-training for flexibility, and tools that flag overtime before it hits your payroll.
