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Free Restaurant Labour Cost Calculator
Enter wages by role and weekly revenue. Get your labour%, RAG status vs benchmark, and annual saving if you hit target.
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What Restaurant Labour Cost Management Actually Means
Most operators know their labour is “too high.” Very few know it by how much, which roles are driving it, or what a realistic target looks like for their site. Labour cost management isn’t about paying staff less — it’s about matching hours to revenue, scheduling smarter, and tracking the number weekly so problems surface before they become profit emergencies.
The formula is simple: total wages ÷ total revenue × 100 = labour%. A restaurant turning over £18,000/week with a £5,400 wage bill is at 30% — the upper end of the UK benchmark. The same site at £4,500 wages is at 25%, which means an extra £46,800/year in gross profit without a single extra customer.
The national minimum wage for 2026 sits at £12.21/hour for front of house. A CDP costs around £16/hour, sous chef £18, head chef £28. These aren’t negotiable — the only variable is hours. Which means scheduling is where labour cost is actually won or lost.
Why Most Restaurants Overspend on Labour
The three most common causes: over-scheduling during quiet periods because “it’s always been that way,” not tracking actual vs scheduled hours weekly, and carrying dead management time that doesn’t connect to revenue. A labour dashboard that shows you this week’s number by Wednesday means you can still adjust the weekend schedule before it’s too late.
Labour Cost Deep Dives
Ten articles covering every angle of restaurant labour cost — from calculating your number to fixing it.
01How to Calculate Restaurant Labour Cost UK
Step-by-step formula, what to include, what operators get wrong.
Restaurant Labour Cost Percentage UK Benchmarks
What 28–32% actually means for different restaurant types and revenue levels.
How to Reduce Restaurant Labour Costs UK
Practical cuts that don’t affect service — scheduling, cross-training, dead hours.
Restaurant Staff Scheduling UK Guide
How to schedule against revenue forecasts, not habit.
Restaurant Labour Cost Template UK (Free)
Download a weekly labour tracking spreadsheet built for UK operators.
Restaurant Prime Cost Calculator UK
Labour + food cost combined — the number that determines restaurant survival.
Restaurant Staff Cost Calculator
Calculate total cost of employment including NI, pension, and holiday pay.
National Minimum Wage Restaurant UK 2026
Current NMW rates by role, what’s changed, and how it affects your labour%.
Restaurant Labour Cost vs Revenue UK
How to read your labour% as revenue fluctuates week to week.
Restaurant Console — Labour Module
How the labour dashboard inside the Console tracks, flags and reports weekly.
Restaurant Console — Labour Module
Your Labour% in Real Time, Every Week
The Labour Dashboard inside the Restaurant Console shows your actual labour% against your target the moment you enter the week’s wages and revenue. It breaks down by role, flags when you’re over benchmark, and projects your annual saving if you hit target. No formulas to set up — it’s built and ready on day one.
Weekly labour% tracker
Role-by-role breakdown
Benchmark RAG status
Annual saving projection
Scheduled vs actual hours
NMW compliance checker
Part of the 25-module Restaurant Console — £97 one-time, runs in Google Sheets you own permanently.
Common Labour Cost Questions
What is a good labour cost percentage for a UK restaurant?
The UK benchmark is 28–32% of revenue. Fast casual and high-volume sites can operate at 25–28%. Fine dining typically runs 35–40% due to skill requirements. Teal Farm Pub achieves 15% at £916k annual turnover through tight scheduling and cross-trained staff — though this is exceptional rather than a universal target.
How do I calculate restaurant labour cost percentage?
Total weekly wages ÷ total weekly revenue × 100. Include all employed staff — kitchen, front of house, and management. Do not include owner drawings unless you pay yourself a fixed salary. Use our free calculator above to get your number instantly.
How much does 1% reduction in labour cost save per year?
At £18,000 weekly revenue (£936k/year), each 1% reduction saves £9,360/year. At £10,000/week it saves £5,200/year. The formula: annual revenue × 0.01 = annual saving per 1% reduction.
What is the minimum wage for restaurant staff in the UK 2026?
From April 2026: £12.21/hour for workers aged 21+. Kitchen CDP roles typically pay £14–16/hour. Sous chefs £17–19/hour. Head chefs £25–30/hour depending on site size and location.
What is prime cost in a restaurant?
Prime cost is food cost + labour cost combined. UK target is below 60% of revenue. If your food cost is 32% and labour is 30%, prime cost is 62% — leaving 38% to cover rent, utilities, and profit. Most failing restaurants have prime costs above 70%.
Track Labour Weekly with the Restaurant Console
25-module Google Sheets webapp. Labour dashboard, GP tracker, weekly P&L, HACCP logs and more. £97 one-time — yours forever.
Get the Console — £97
See All 25 Modules
Built at Teal Farm Pub — £916k revenue, 15% labour cost, #1 TripAdvisor Washington.
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