Efficient scheduling can reduce your labor costs by 10-20%. Many restaurants overspend because they staff too many people during slow periods. In this article, you'll learn step-by-step how to calculate the savings from a smarter schedule.
Why scheduling impacts your profit
Labor costs are often the biggest expense after ingredients. In an average restaurant, they make up 25-35% of revenue. A schedule that doesn't match your busy periods means losing money directly.
💡 Example:
Restaurant with €50,000 monthly revenue:
- Labor costs: 30% = €15,000/month
- 10% savings = €1,500/month
- Per year: €18,000 less in labor costs
Step 1: Measure your current labor costs per hour
For an accurate calculation, you need these figures:
- Hourly wage per position (including employer contributions)
- Number of hours per day/week per position
- Revenue per day/hour to measure busy periods
⚠️ Important:
Always calculate with the total hourly wage including employer contributions (approximately 130% of gross salary).
Step 2: Analyze your busy periods by time slot
Look at your revenue per hour over the past month. You'll often see clear patterns:
- Quiet mornings (10:00-12:00)
- Lunch rush (12:00-14:00)
- Quiet afternoons (14:00-17:00)
- Evening rush (18:00-22:00)
💡 Example busy period analysis:
Tuesday between 14:00-17:00:
- Average revenue: €45/hour
- Staff scheduled: 3 people
- Labor costs: €75/hour (3 × €25)
- Labor cost percentage: 167% of revenue!
Step 3: Calculate the possible savings
Now you can calculate what you save by scheduling fewer staff during slow periods:
Savings formula per week:
Number of hours less × Hourly wage × Number of days per week
💡 Calculation example:
You can send 1 person home 3 hours earlier on 5 days:
- Savings per day: 3 hours × €25 = €75
- Per week: €75 × 5 days = €375
- Per month: €375 × 4.33 = €1,624
- Per year: €1,624 × 12 = €19,488
Step 4: Check that your service level stays good
Saving on labor costs shouldn't come at the expense of your service. Monitor these points:
- Wait times remain acceptable
- Quality of dishes stays good
- Staff doesn't become overworked
- You can still handle peak periods
Tools that help with scheduling
An app like KitchenNmbrs can help you track labor costs per day and compare them with your revenue. This way you immediately see which days you over or understaffed.
How do you calculate labor cost savings? (step by step)
Gather your current labor data
Write down the hourly wage per position (including employer contributions) and add up the total number of hours per week. Look at at least 4 weeks to get a reliable average.
Analyze your busy periods by time slot
Measure your revenue per hour and compare it with your staff levels. Look for moments where your labor cost percentage exceeds 35% - that's where you can probably save.
Calculate the savings
Multiply the number of hours you can save by the hourly wage and the number of days per week. Calculate this through to monthly and yearly basis for total savings potential.
✨ Pro tip
Track your revenue per hour and staff levels for 4 weeks. Then you'll see exactly when you're overpaying for labor costs.
Calculate this yourself?
In the KitchenNmbrs app you can do this in just a few clicks. 7 days free, no credit card.
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Frequently asked questions
What is a healthy labor cost percentage?
For restaurants, a healthy labor cost is between 25-35% of revenue. At 40% or higher, you're probably losing money.
How do I prevent understaffing?
Always keep a buffer for unexpected busy periods. Start cautiously with 1 hour less per person and monitor your service level.
Should I include employer contributions in the calculation?
Yes, always. Employer contributions are approximately 30% on top of gross salary. So at €20 gross per hour, you actually pay €26 per hour.
Can I also save by using cheaper staff?
Yes, by using junior staff during slow periods you can also save. Just make sure the quality of service and food stays good.
How often should I adjust my schedule?
Check monthly whether your schedule still matches your busy periods. Seasons, events, and trends can change when your customers visit.
📚 Sources consulted
- EU Verordening 852/2004 — Levensmiddelenhygiëne (2004) — Official source
- EU Verordening 853/2004 — Hygiënevoorschriften voor levensmiddelen van dierlijke oorsprong (2004) — Official source
- EU Verordening 1169/2011 — Voedselinformatie aan consumenten (2011) — Official source
- NVWA — Hygiënecode voor de horeca (2024) — Official source
- NVWA — Allergenen in voedsel (2024) — Official source
- Codex Alimentarius — International Food Standards (2024) — Official source
- FSA — Safer food, better business (HACCP) (2024) — Official source
- BVL — Lebensmittelhygiene (HACCP) (2024) — Official source
- Warenwetbesluit Bereiding en behandeling van levensmiddelen (2024) — Official source
- WHO — Foodborne diseases estimates (2024) — Official source
Food Standards Agency (FSA) — https://www.food.gov.uk
The HACCP standards shown in this application are for informational purposes only. KitchenNmbrs does not guarantee that displayed values are current or complete. Always consult the FSA or your local authority for the latest regulations.
Written by
Jeffrey Smit
Founder & CEO of KitchenNmbrs
Jeffrey Smit built KitchenNmbrs from 8 years of hands-on experience as kitchen manager at 1NUL8 Group in Rotterdam. His mission: give every restaurant owner control over food cost.
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