Estimate number of guests at a certain time, 2. Acceptable labor cost percentages can run anywhere from 25 to 40 percent of a restaurant's gross revenue. In 2019, nearly half of restaurant owners reported experiencing labor cost increases, forcing many to increase prices or reduce the amount of staff. Cafeteria 104,250 89.6% Executive Dining Room 12,150 10.4% Total Served 116,400 100.0% Total Cost $ Per Meal Cost $ COST OF SALES Cafeteria $248,750 $2.39 Executive Dining Room 48,450 $3.99 Total Cost of Sales 297,200 $2.55 LABOR Management 73,332 $0.63 Staff 171,108 $1.47 Employee Benefits 61,110 $0.53 401(k) Match 25,350 $0.22 Total Labor 330,900 $2.84 PRIME COST 628,100 … = 12,728 --> total # of meals served. The folks at eZCater came up with some really useful accounting equations (with an infographic!) You can’t cut the only cook. Use the restaurant scheduling template, a customizable Google Sheets template, to schedule your restaurant staff's shifts so employees can access it on the go. Our product team continues to Read more, No matter who you come across in the restaurant industry, the resounding consensus is this: restaurants are a people business. Just so you know, we’ll handle your info according to our privacy statement. $237,000 / 900,000 x 100 = .26 or 26% . For example, if your hostess can jump in when a server goes home sick, she can keep diners happy without adding extra payroll. Multiply by 100. Determine your total operating costs. Step 3: Divide labor costs by sales. 1 cook hour allotted for every 20 guests = 2 cook … Look at number of staff needed to serve guests. Download our restaurant metrics Excel template at the link below to calculate your labor cost. See Also: Absorption vs Variable Costing Agency Costs Operating Capital Replacement Costs. Read more, Decision Logic 5.11 showcases a printable Employee Roster and the ability to add substitutes when using the Manual Receive feature. 1 server hour for every 10 guests = 4 server hours Cross-train and turn your employees into jacks of all trades. $2400/130 = $18.46 per meal. As you build your business plan, you will find it’s difficult to wrap your arms around your potential revenue and daily costs. Labor cost describes the total dollar amount your restaurant spends on labor, including pay for salaried and hourly workers, as well as taxes and employee benefits. There are a few ways to calculate labor cost percentage. For example, if the restaurant paid $300,000 a year to its employees and brought in $1,000,000 a year in sales, divide $300,000 by $1,000,000 to get 0.3. The server’s average wage is $5 x 4 hours. 1. cafeteria sales / meal equivalent factor = $23,231 / 2.15. This cost includes all the money that the business had to pay to its employees throughout the year. 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