Running an all-day-dining restaurant is like managing a factory that produces different products every few hours. Your breakfast team cranks out eggs while your dinner crew preps steaks, but you're paying wages for both shifts even if morning sales barely cover coffee costs. Labor expenses become the make-or-break factor since you need 12-14 hours of coverage daily.
Why labor cost is the deciding factor
All-day-dining boils down to occupancy rate versus personnel costs. You'll need minimum 12-14 hours of daily staffing, but revenue distribution stays wildly uneven across those hours.
- Breakfast: typically slow with low check averages
- Lunch: intense but brief rush
- Afternoon lull: skeleton crew serving few guests
- Dinner: peak revenue requiring full team
The real question becomes whether total daily revenue can shoulder total labor expenses.
Calculate your break-even per time slot
Each time period needs its own calculation: minimum revenue required to cover labor costs.
💡 Example: Breakfast (7:00-11:00)
Staff present:
- 1 chef: 4 hours × €18 = €72
- 1 server: 4 hours × €15 = €60
- Total labor costs: €132
At 30% labor cost target, you need €440 revenue for break-even.
€132 / 0.30 = €440 minimum revenue
Repeat this exercise for every time slot. Sum all minimum revenues together. That becomes your daily break-even target.
Analyze your current revenue pattern
Pull POS data from your last 90 days. Which hours actually generate meaningful revenue?
- Revenue generated 7:00-11:00?
- Revenue generated 11:00-17:00?
- Revenue generated 17:00-22:00?
⚠️ Reality check:
Most restaurants drastically overestimate breakfast and lunch potential. Research what similar establishments in your neighborhood actually earn during off-peak hours.
Calculate total labor costs per day
All-day operations typically require overlapping shifts plus extended hours coverage.
💡 Example: Full day
Staff schedule:
- Breakfast chef (7:00-11:00): €72
- Lunch chef (10:00-15:00): €90
- Dinner chef (16:00-23:00): €126
- Early server (7:00-15:00): €120
- Late server (15:00-23:00): €120
Total daily cost: €528 labor
At 30% labor target, you need €1,760 daily revenue.
Test with a limited trial
Avoid jumping straight into full operations. Start by testing one additional time period:
- Add breakfast only (maintain current lunch/dinner)
- Or extend until 23:00 (keep existing hours)
- Track for 30 days: revenue versus added labor expenses
After managing kitchen operations for nearly a decade, I've seen too many concepts fail by expanding too quickly. Only move forward once your test period shows consistent profitability.
Monitor performance with tracking tools
Digital systems help you track labor cost percentages daily. You'll spot unprofitable time slots immediately instead of discovering losses weeks later.
You can also model different scenarios before committing to the concept.
How do you calculate feasibility? (step by step)
Calculate labor costs per time slot
Create a staff schedule for each time slot (breakfast, lunch, dinner). Add up hours × hourly wage. These are your fixed costs per time slot.
Determine minimum revenue per time slot
Divide labor costs by your desired labor cost percentage (usually 25-35%). This is your break-even revenue per time slot.
Compare with realistic revenue expectations
Check POS data from comparable establishments, or test with limited hours. If your expected revenue is higher than your break-even, the concept can work.
✨ Pro tip
Track your labor cost percentage hourly for 28 consecutive days during your test period. Any 4-hour block that consistently hits 38% or higher labor cost signals that time slot won't sustain profitability long-term.
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 labor cost percentage should I target for all-day-dining?
All-day concepts typically run 30-35% labor costs versus the standard 25-30%. Extended hours require more staff coverage while not every hour generates equal business. Factor this higher percentage into your feasibility calculations.
Can I start with skeleton crew to reduce costs?
That's dangerous territory. Understaffing creates poor service experiences that drive customers away permanently. Start with limited hours and proper staffing, then expand as revenue justifies additional coverage.
How do I handle unprofitable time slots?
Deploy flexible cross-trained staff who can handle multiple roles during slow periods. A chef who can also serve tables during breakfast lulls maximizes efficiency. Monitor weekly performance and cut hours that consistently lose money.
What if breakfast and lunch revenue disappoints?
Scale back immediately to your proven profitable hours. Better to excel during limited service than bleed money all day. Many successful restaurants thrive with dinner-only concepts.
Should I create separate menus for each daypart?
Not necessarily required, but calculate food costs separately for each time period since pricing and portion expectations vary. Breakfast items typically carry different margins than dinner entrees.
How accurate should my labor projections be before launching?
Aim for within 5% accuracy on your labor cost calculations before committing to full operations. Test your projections during a 30-day trial period and adjust staffing models based on actual performance data rather than estimates.
📚 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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