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Labour Cost Percentage

Total labour cost as a share of sales, including wages, employer taxes, and benefits.

Labour cost percentage is your total staff cost divided by sales:

  • Labour cost % = (wages + employer costs + benefits) ÷ sales × 100

Most restaurants aim for 25% to 35%, varying by service model. Together with food cost it makes up your prime cost. The lever is matching rotas to demand rather than habit. Learn more in the profit margin guide.