## Restaurant Labour Cost Calculator

URL: https://minimalpos.com/tools/labor-cost-calculator

Labour is usually the second-largest cost in a restaurant after food, and the one most often measured too late. Add your team, their hourly rates and hours for the period, then enter your revenue to see labour as a percentage of sales — and, if you know your food cost, your prime cost.

### Features

- Unlimited staff rows with hourly rate and hours
- Optional employer on-costs applied across the team
- Labour cost as a percentage of revenue
- Prime cost when you add food cost percentage
- Benchmark bands so you can see where you sit

### How it relates to MinimalPOS

Labour percentage only means something next to the sales it produced. MinimalPOS reports net sales by shift, day and peak hour, so you can put labour against the revenue it actually generated instead of against a monthly average.

**What is a good labour cost percentage for a restaurant?** It depends heavily on service model. Quick-service and counter-led venues typically run lower than full-service restaurants, because full service carries more staff per cover. Rather than chase a single number, track your own figure over time and watch the direction — a percentage climbing while sales are flat is the signal that matters.

**How do you calculate labour cost percentage?** Divide total labour cost for a period by total revenue for the same period, then multiply by 100. The two figures must cover exactly the same days, or the percentage is meaningless.

**What is prime cost?** Prime cost is food cost plus labour cost, expressed as a percentage of revenue. It is the single most watched number in restaurant operations because together those two lines are where most of the money goes and where most of the control sits.

**Should employer on-costs be included?** Yes, if you want a true figure. Statutory contributions, insurance and other employer on-costs are a real part of what a member of staff costs you. Add them as a percentage on top of gross wages so the labour figure reflects actual outgoings.