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The Labour Cost Calculator

It can be daunting to get labour cost under control across multiple venues. But the good news is that even 1% improvements in your labour cost can drop straight to your bottom line. Enter your numbers below and you'll immediately see your labour cost percentage, how it sits against the healthy range for your venue, and what trimming it by just 1–3 points would be worth over a year.

Surprised? Now take your team through the process (by copying the link and sending it to them) so they can see the bottom-line result of making these minor adjustments.

Note: your data is completely private, we can't see or keep the numbers you enter here.

Graphic with text 'Give your profit a bump' showing a plate with a green onion and text about net profit before tax and percentage increase with question marks and dollar signs.

Trim your labour cost & boost your profit.

Simply enter your last week, month or year's actual numbers below, hit calculate, and we'll show you your labour cost percentage — and how small reductions add up to big jumps in profit.

Swipe the table to the right to see the results.

Your data is completely private — everything is calculated in your browser, and we can't see or keep the numbers you enter here.

Include the full cost of labour: wages, overtime and penalty rates, payroll tax/on-costs, super or KiwiSaver, and leave — not just the roster total.

Frequently asked questions

How do I calculate my labour cost percentage?

Divide your total labour cost (wages plus on-costs like overtime, payroll tax, super or KiwiSaver, and leave) by your total sales excluding GST for the same period, then multiply by 100. So $75,000 of labour on $250,000 of sales is 30%.

What should I include in "labour cost"?

More than the roster total — include wages and salaries, overtime and penalty rates, payroll tax and on-costs, super (AU) or KiwiSaver (NZ), and leave. Leaving on-costs out understates your real number by a few points.

What's a good labour cost percentage?

It depends on format: cafe/quick service around 20–25%, casual dining 25–30%, pubs and bars 22–27%, and fine dining 27–32%. The more useful comparison is your own venues against each other, measured the same way.

How much can I realistically save?

A reduction in labour cost percentage drops almost straight to your bottom line — so a 1–2 point reduction on a venue doing $1.5m a year is worth $15,000–$30,000 annually, usually found through better rostering and catching hidden overtime rather than cutting shifts.

Will reducing labour cost hurt service?

It shouldn't — done well it improves it. The aim is the right people at the right times, matched to demand, not simply fewer people on the floor.

Keep reading

How to calculate labour cost %The formula, what to include, and the numbers most venues get wrong. What's a good labour cost %?Benchmarks by venue type — and why the average isn't your target. How to reduce labour costsFive ways to bring labour down without gutting service.