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
Restaurant Labor Cost Calculator Template.xlsx
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.
Free template vs. 7shifts: Which is right for you?
A spreadsheet is a great starting point. But once your team grows, manual tracking can turn into busywork—and missed insights. Use the template if: you want a simple way to track labor % and spot trends. Use 7shifts if: you want POS-connected reporting, forecasting, and overtime alerts built in.
 | Food Cost Template | |
| Customizable to your restaurant |  |  |
| Free | | |
| POS Integration for automatic sales tracking | |
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.
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