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Understanding restaurant labour cost
Labour cost percentage is one way to understand how staffing expense relates to sales, but it should never be the only measure of a healthy operation.
Explore ChumiThe basic formula
Labour cost percentage = labour cost ÷ revenue × 100. Use consistent periods and decide which employer costs to include.
Read the figure in context
Service quality, sales mix, seasonality and workload influence what a sustainable percentage looks like.
Use it alongside your roster
Compare expected demand and staffing coverage rather than cutting hours blindly.