Track labor cost percentage while you can still change it.
Labor cost percentage is the clearest read on whether a week was staffed right: labor spend divided by sales. The catch is timing. Most operators only see it after payroll closes, when the overstaffed Tuesday is already paid for. Here's how to calculate it, what ranges are common and how to watch it during the week.
- The formula, with a worked example
- Common ranges by restaurant format
- How to track it weekly from real hours and revenue
20–25%
Quick service
Leaner crews, faster turns
25–30%
Casual dining
The common middle band
30–35%
Full service
Heavier service staffing
Common rules of thumb for restaurant labor cost, not GetUp figures. Your target depends on your format and market.
The problem
What this fixes
Why labor cost percentage is only useful if you see it in time.
Without GetUp
You learn last month ran at 38% when the payroll report lands, too late to change the shifts that caused it.
With GetUp
Reading the number weekly means an overstaffed pattern is something you fix before next week, not after month-end.
Without GetUp
Across several sites there's no single read, just a different spreadsheet per location.
With GetUp
When hours and revenue sit in one system, you can compare locations instead of reconciling files.
Without GetUp
The figure is built from planned or rounded hours, so nobody fully trusts it.
With GetUp
Built from recorded check-in times, it reflects the hours people actually worked.
How it works
From setup to running it
How to calculate and track labor cost percentage, step by step.
- 01
Know the formula
Labor cost percentage = total labor cost ÷ total sales × 100. $6,000 of labor on $20,000 of sales is 30%. Include wages, overtime and employer costs, not just base hourly pay.
- 02
Pick a target for your format
As rough guidance, quick service often runs around 20 to 25%, casual dining 25 to 30% and full service 30 to 35%.
- 03
Use actual hours
Planned and worked hours drift apart. A percentage built from recorded check-ins reflects what really happened.
- 04
Put revenue next to labor
In GetUp, wages come from check-in hours and hourly rates, and revenue can come from connected POS and payment integrations. Ask GetUp AI for both figures for the same period.
- 05
Review weekly and adjust
Check the percentage each week. Where it's drifting high, trim or move the shifts that drive it before they're worked.
Outcomes
What changes
What tracking the number weekly changes.
A number you can trust
Built from recorded hours rather than the rota.
Seen in time to act
A weekly read turns the fix into a schedule change, not a post-mortem.
Comparable locations
Using the same method at every site makes the outlier obvious.
Tied to the rota
The shifts that drive the number are the ones you change.
FAQ
Questions people ask
What is labor cost percentage and how do I calculate it?
It's labor cost as a share of sales: total labor cost ÷ total sales × 100. For example, $6,000 of labor on $20,000 of sales is 30%. For an honest figure, include wages, overtime and employer costs over the same period as the sales.
What's a good labor cost percentage?
It depends on format. As rough guidance, quick-service restaurants often run around 20 to 25%, casual dining around 25 to 30% and full service around 30 to 35%. These are rules of thumb, not GetUp figures.
Should I use scheduled hours or actual hours?
Actual hours. Scheduled and worked hours drift apart over a week, so a percentage built from the rota flatters reality.
Does labor cost include more than wages?
It should. Include overtime and employer costs such as payroll taxes and benefits for the same period as the sales figure.
Can GetUp show my labor cost percentage?
GetUp gives you both inputs: gross wages from recorded check-in hours and hourly rates, and revenue from connected POS and payment integrations. The AI assistant can pull both for a period so you can work out the percentage.
See your labor cost while it's still yours to change.
Record real hours with check-in codes, connect your revenue and read labor against sales every week.
14-day free trial · no card required