Your P&L shows exactly how much you earn per revenue moment and tells you if an extra cook will actually pay for themselves. Too many restaurant owners schedule staff on gut instinct, either blowing their labor budget or leaving the kitchen understaffed during rush periods. Hard P&L data eliminates the guesswork.
What your P&L reveals about labor costs
Your P&L breaks down what percentage of revenue goes to labor costs. Most restaurants run 25-35% of total revenue on labor. Once you know your hourly revenue generation, you can figure out if an additional cook actually pays for themselves.
💡 Example:
Restaurant with €40,000 monthly revenue and €12,000 labor costs:
- Labor cost percentage: 30%
- Revenue per hour (average): €167
- Cook costs €18/hour
Break-even: cook needs to generate €18 extra revenue per hour
Calculate your break-even point per cook
To figure out if an extra cook makes financial sense, you need the break-even point. That's how much additional revenue you need to cover their labor costs.
Formula: Break-even revenue = Hourly wage cook / (1 - Total variable costs %)
Variable costs include food cost plus any commissions. For most restaurants, this hits 30-35%.
💡 Calculation example:
Cook earns €18/hour, your variable costs are 32%:
- Break-even: €18 / (1 - 0.32) = €18 / 0.68
- = €26.47 extra revenue per hour needed
If that cook generates €27+ revenue per hour, they pay for themselves
Check your busiest periods
Your P&L shows which days and times generate the most revenue. Look at daily sales and cover counts. An extra cook pays off fastest during peak hours because:
- You generate more revenue per hour
- Faster service means more tables per evening
- Less kitchen stress prevents mistakes and waste
- Better quality keeps guests satisfied
⚠️ Note:
Don't just count direct revenue. An extra cook can also reduce waste, improve portions, and speed up service. This creates indirect value that's harder to measure.
Identify seasonal patterns
Your 12-month P&L data reveals seasonal trends. Use these patterns to decide when temporary staff additions make sense:
- Summer: Patio service boosts revenue, extra cook often pays for themselves
- Holidays: Busy periods justify temporary team expansion
- Slow months: Cut labor costs by reducing scheduled hours
💡 Practical example:
December revenue 40% higher than average:
- Normal month: €35,000 revenue
- December: €49,000 revenue
- Extra revenue: €14,000
At 30% variable costs, €9,800 remains for extra labor costs
Apply your average check data
Your P&L shows total revenue and cover counts. Divide these to get your average check. This helps estimate how many extra guests you need to break even on a cook.
Average check = Total revenue / Number of covers
If an extra cook needs to generate €27 per hour, and your average check is €24, then that cook needs to bring in about 1.1 extra guests per hour. From analyzing actual purchasing data across different restaurant types, this metric proves surprisingly accurate for forecasting labor ROI.
Monitor and adjust
After adding an extra cook, compare these numbers:
- Has your revenue per hour increased?
- Are your labor costs still within 35%?
- Has your average check stayed the same or increased?
- Do you have less waste due to better organization?
Real-time reporting systems show these numbers immediately, so you can quickly adjust if the extra cook isn't generating enough value.
How do you decide based on your P&L? (step by step)
Calculate your current labor cost percentage
Divide your total labor costs by your revenue and multiply by 100. For restaurants, 25-35% is normal. If you're higher, be careful about adding staff.
Determine your break-even point per cook
Divide the cook's hourly wage by (1 minus your variable cost percentage). This is the extra revenue per hour you need to break even.
Check your busiest moments
Look in your P&L which days and times have the highest revenue per hour. An extra cook pays for themselves fastest during these moments through faster service and more tables.
Test and measure the result
Schedule the extra cook during busy periods and compare your revenue per hour and labor cost percentage. Adjust if the numbers don't add up.
✨ Pro tip
Compare your revenue-per-cook over 2-week periods to catch performance trends. If you're averaging €156/hour with two cooks but only €198/hour with three, that third position isn't generating enough value.
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 if my labor costs are already 35%, can I still hire an extra cook?
You can, but only if that cook generates enough extra revenue to bring your percentage down. First calculate the break-even point and test it during your busiest times.
How do I know if an extra cook really generates more revenue?
Measure your revenue per hour before and after adding the extra cook. Also count the number of tables per evening. Faster service means more revenue per table.
Should I include variable costs in my calculation?
Yes, because more revenue also means higher food costs. Calculate with your total variable costs (usually food cost plus any commissions) for a realistic picture beyond just hourly wages.
Can I use this method to reduce staff too?
Absolutely, but in reverse. If a cook consistently generates less revenue per hour than their break-even point, you should consider reducing their scheduled hours.
📚 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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