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labour-cost

Labour Cost

2 articles to help your business succeed

Keep your biggest expense under control. Practical strategies for scheduling, staffing, and hitting your labour cost targets as a UK restaurant owner.

💡Quick Tips for Labour Cost

  • ✓Track labour cost as a percentage of revenue weekly — aim for 25-35% depending on your format
  • ✓Build rotas based on historical covers data by day and daypart, not the same schedule every week
  • ✓Cross-train staff across positions to increase scheduling flexibility
  • ✓Calculate the true cost of turnover — typically £3,000-5,000 per front-of-house team member
  • ✓Use scheduling software that integrates with your POS to forecast labour needs

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restaurant financerestaurant profitstaff trainingrestaurant managementrestaurant operations

Frequently Asked Questions

What is the ideal labour cost percentage?

Quick-service 20-28%, casual dining 28-33%, fine dining 33-40%. Your combined prime cost (food plus labour) should stay below 65% of revenue. Track both percentage and cost per cover.

How can I reduce labour costs without cutting hours?

Focus on productivity: streamline prep, invest in labour-saving equipment, simplify your menu, implement table management systems, and reduce turnover through better training and conditions. A 10% productivity improvement equals cutting hours without the service decline.

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