MenuPricer·Labor Cost CalculatorAI Pricing Tool →
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Labor Cost Calculator
Percentage of Revenue

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.

Enter Your Numbers

Use one consistent period — typically one month.

Formula

Labor Cost % = (Wages + Tax + Benefits) ÷ Revenue × 100

Labor Cost Benchmarks by Restaurant Type

Target ranges — use these to see how your operation compares.

TypeTarget Labor CostWhy
Quick Service25–30%Lean staffing, high transaction volume
Fast Casual28–32%Some table service, moderate staffing
Casual Dining30–35%Full front and back of house staffing
Fine Dining35–40%Higher service ratio, specialized kitchen roles
Bar / Nightlife22–28%Beverage-led revenue needs less labor per dollar

Frequently Asked Questions

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