What is an average labor cost for restaurants?


According to Nightclub and Bar Magazine, the average labor costs of most restaurants is equal to 30 percent of the restaurant's sales. However, actual labor costs vary based on how many employees a restaurant has, how many hours they work and their rate of compensation. Labor costs include all wages or bonuses paid to employees, but they do not include tips.

In most restaurants, the biggest labor costs come from the kitchen staff. In most cases, wait staff are paid minimum wage or less depending on the state laws, and they use tips to supplement their earnings. Chefs, cooks and managers, in contrast, are paid from the restaurant's coffers, and their wages are usually above minimum wage. According to the Bureau of Labor Statistics, the average chef is paid an annual salary of $42,000.

To calculate a restaurant's labor costs, one simply needs to add together all the money that was paid to the restaurant's employees over a certain time period. Then, that number needs to be compared to the sales over the same time period. For instance, if a restaurant paid out $10,000 in wages during a week and collected $30,000 in sales, their labor costs were the equivalent of 33 percent.

Q&A Related to "What is an average labor cost for restaurants?"
I took my first loan when I was 25 and this supported my relatives very much. However, I require the car loan as well.
1. Multiply the number of hours worked by each employee during the period you are calculating by each employee's hourly rate. Do this for all of your hourly employees. In some restaurants
It all depends if you're talking lunch or dinner and also whereabouts in Belgium. Just like in any other country, meals are more expsensive in the big cities. As an average a plate
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Ask.com Answer for: average labor cost for restaurants
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 »
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Source: www.ehow.com
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