what is a good labor percentage for restaurant

Labor Percentage in the Restaurant Industry.The labor percentage in the restaurant industry is an important factor to consider when running a successful business.

Published on 01/01/2023Sébastien Vassaux
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Labor Percentage in the Restaurant Industry

The labor percentage in the restaurant industry is an important factor to consider when running a successful business. It is important to understand the labor percentage in order to ensure that your restaurant is running efficiently and profitably.

What is a Good Labor Percentage for a Restaurant?

A good labor percentage for a restaurant is typically between 25-35%. This percentage should be used as a guideline when budgeting for labor costs. It is important to note that this percentage may vary depending on the type of restaurant and the size of the staff.

Factors to Consider When Calculating Labor Percentage

When calculating labor percentage, there are several factors to consider:
  • Number of Employees: The number of employees you have will affect the labor percentage. The more employees you have, the higher the labor percentage will be.
  • Type of Restaurant: The type of restaurant you are running will also affect the labor percentage. For example, a fast-food restaurant will typically have a higher labor percentage than a fine-dining restaurant.
  • Location: The location of your restaurant can also affect the labor percentage. For example, restaurants in high-cost areas may have a higher labor percentage than restaurants in lower-cost areas.

Conclusion

In conclusion, a good labor percentage for a restaurant is typically between 25-35%. It is important to consider the number of employees, type of restaurant, and location when calculating the labor percentage. By understanding the labor percentage, you can ensure that your restaurant is running efficiently and profitably.

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