Glossary

What is Labor Cost Percentage?

Last updated: July 7, 2026

Labor cost percentage is total labor spend — wages, payroll taxes, and benefits — divided by sales. Full-service restaurants typically run 28-33%. It is managed shift by shift: scheduled hours versus forecast sales, not discovered on the P&L.

Labor Cost Percentage example with real numbers

A location with $30,000 weekly sales and $9,600 in fully loaded labor runs 32%. Trimming 15 scheduled hours at a $22 loaded rate saves $330/week, about 1.1 points.

How multi-unit restaurant groups manage labor cost percentage

Vento joins payroll and POS data daily so operators see labor percentage per location per day, catching over-scheduling while the week can still be adjusted.