Labor against sales, loaded properly with payroll taxes and benefits — the number your POS dashboard is quietly understating by 10–20%.
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| Fully loaded labor cost | — |
| Payroll tax burden | — |
| Labor at your target % | — |
| Sales needed to hit target at this labor | — |
Labor cost percentage is fully loaded labor ÷ total sales. "Fully loaded" means wages plus employer payroll taxes plus benefits, insurance and workers' compensation — the gross-wages-only number that most POS dashboards show understates your real cost by roughly 10–20%, and it is the reason a restaurant can hit its "labor target" every week and still have no cash at month end.
Typical full-service labor runs 30–35% of sales; quick service and counter-service models land nearer 25–30% because they carry fewer front-of-house hours. Both figures depend on tip credit rules where you operate, so compare yourself to your own history first and to industry benchmarks second.
The last row is the one worth acting on. Labor is mostly fixed inside a shift — once the line is staffed, the cost is committed — so the fastest route to a healthier percentage is usually more sales per labour hour, not fewer hours. Cutting a server on a busy Friday saves $120 and costs a lot more in turned tables and lost dessert covers.
Fully loaded labor ÷ total sales. Fully loaded means gross wages plus employer payroll taxes plus benefits, insurance and workers' compensation — not the gross wages figure most scheduling tools display.
Full service typically runs 30–35% of sales; quick service and counter service nearer 25–30%, because they carry fewer front-of-house hours. Compare against your own history first.
Usually not on busy shifts. Labor is largely fixed once the line is staffed, so more sales per labour hour improves the ratio faster than fewer hours — and understaffing a Friday costs more in turned tables than it saves in wages.