Labor Cost Percentage Calculator
Labor cost % = (Total labor ÷ Net sales) × 100. A QSR labor budget is typically 20–25%. Full-service Indian restaurants run 25–30%. Beyond 30%, you are usually over-staffed or under-pricing.
Use this tool weekly during a wage review — it surfaces the wage-to-sales ratio you can actually act on.
What to include
Wages, bonuses, PF, ESI, staff meals, uniforms, overtime. Owner-operator salary should go in fixed cost, not labor.
How to lower labor %
Shorten the lull-time roster, cross-train so the same FTE covers two stations, push for higher table turns (smaller table count, quicker bussing).
Frequently Asked Questions
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