Updated October 25, 2026
Labor is often the largest single cost in a restaurant, and the hardest to cut without guests noticing. Many restaurants land somewhere around 25–35% of sales depending on service style, so the right target depends on your concept. The goal is not the fewest people; it’s the right people on the floor at the right time.
Schedule to sales, by the hour
Pull sales by hour for the last several weeks and build the schedule from that, not from last week’s schedule. Most venues find hours stacked in slow periods and too few on the rush.
- Forecast sales by day and daypart
- Set staffing levels per sales range for each position
- Stagger start and cut times instead of full blocks
- Review the schedule against the forecast before posting it
Track productivity, not just percentage
Labor percentage swings with sales. Sales per labor hour and covers per server are steadier measures and show which shifts are overstaffed.
Control overtime and early clock-ins
Overtime is expensive and usually avoidable. Require approval for it, watch for early clock-ins and late clock-outs, and make managers responsible for cutting staff as soon as it’s slow.
Fix the work, not just the hours
Often labor is high because the work itself is inefficient: a menu with too many prep-heavy items, a kitchen layout that adds steps, side work done during service. Simplifying the menu and the workflow lets the same team handle more.
Reduce turnover
Every new hire costs recruiting, training and slower shifts. Clear training, fair scheduling and good shift leaders keep people longer, which is one of the most overlooked labor savings.
