Boss Ops · UK hospitality
How to review restaurant labour cost
Understand the labour-cost-to-revenue calculation and keep scheduled estimates separate from approved attendance and actual payroll costs.
Choose a matching reporting period
Compare labour cost and revenue from the same dates and site. Labour cost percentage = labour cost ÷ revenue × 100. For example, £3,000 ÷ £10,000 × 100 = 30%.
Keep estimates and actuals separate
Scheduled hours, less planned unpaid breaks, can support an estimate using confirmed pay details. Actual payroll may include employer costs, overtime and other adjustments; reconcile it through payroll.
Review the records behind a change
Check attendance, breaks, missing rates and site assignments before interpreting a percentage. Use your own verified revenue and operating targets rather than a generic forecast.
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