Average Labor Cost for Restaurants?

Average labor cost for restaurants vary on the different types of restaurant. For example, a fine dining restaurant will have a higher labor cost compared to a fast food restaurant. It is estimated that at least 31.9 percent of a restaurant's sales goes to labor expenses. To calculate the average labor cost for a restaurant add together the total numbers of hours worked for each employee. Multiply the hourly rate by hours worked. Divide salaried employees by number of weeks in a year. Add all the wages together to determine total labor cost.
Reference:
The Average Labor Cost for Restaurants
With so many types of restaurants from fast food to full-service bar and grills or fancy five-star fine dining, and so many restaurant services and management techniques, it's difficult to establish the average labor costs. However, numerous restaurant... More »
Difficulty: Easy
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