Last reviewed: July 28, 2026
Enter wages, payroll tax, benefits, and revenue to get your labor cost percentage — and see how it compares to your restaurant type.
Use one consistent period — typically one month.
Formula
Labor Cost % = (Wages + Tax + Benefits) ÷ Revenue × 100
Target ranges — use these to see how your operation compares.
| Type | Target Labor Cost | Why |
|---|---|---|
| Quick Service | 25–30% | Lean staffing, high transaction volume |
| Fast Casual | 28–32% | Some table service, moderate staffing |
| Casual Dining | 30–35% | Full front and back of house staffing |
| Fine Dining | 35–40% | Higher service ratio, specialized kitchen roles |
| Bar / Nightlife | 22–28% | Beverage-led revenue needs less labor per dollar |
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