Add your team, their rates and hours, then your revenue for the same period. Labour percentage and prime cost update as you type.
Labour cost percentage
14.4%
Lean
Typical of counter-led and quick-service venues.
Prime cost
44.4%
Food cost plus labour cost, as a share of revenue. The number most operators watch, because it is where most of the money goes.
MinimalPOS reports net sales by shift, day and peak hour — so you can measure labour against the revenue it actually produced, not against a monthly average.
How this free tool helps
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.
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.
Explore MinimalPOS Restaurant POSIt 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.
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.
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.
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.
Continue planning
Looking for operating advice? Read the MinimalPOS restaurant guides.