Restaurant Management and Growth Blog

How to Calculate Restaurant Payroll Percentage

Learn how to calculate payroll percentage using the right payroll and sales numbers, avoid common mistakes, and track results weekly. Your restaurant payroll percentage is a simple way to see how much of your sales are being spent on payroll. It answers one question - "For every dollar I sell, how many cents go to payroll?" If your payroll percentage is 30%, it means about $0.30 of every $1.00 in sales is going toward payroll costs.Restaurant owners track payroll percentage because it's one of the fastest ways to spot whether staffing costs are in line with sales. Payroll is usually your la...

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