While food costs grab most of the attention, staff expenses actually represent your biggest financial commitment in Dutch hospitality, typically running between 28% and 35% of total revenue. Most restaurant owners either underestimate this figure or calculate it incorrectly, leading to chronic overstaffing or dangerous understaffing. You'll find the precise benchmarks for each establishment type and learn the proper calculation method below.
Dutch benchmarks per type of establishment
Staff costs fluctuate dramatically based on your restaurant concept. Quick-service operations run leaner percentages than white-tablecloth establishments since they require fewer hands per customer served.
💡 Benchmark overview:
- Fast-casual restaurants: 25-30%
- Casual dining: 30-35%
- Fine dining: 32-38%
- Cafés with kitchen: 28-32%
- Delivery restaurants: 20-25%
What counts toward staff costs?
Your labor expenses extend far beyond the hourly wages you pay. Every employee-related cost must factor into your calculations.
- Gross wages: All paid wages including allowances
- Employer contributions: Approximately 25% on top of gross wage
- Holiday pay: 8% of annual salary
- Pension: Average 15-20% of gross wage
- Sick leave replacement: External staff when employees are sick
- Training costs: Courses and training
⚠️ Attention:
Many business owners forget to include employer contributions. A chef earning €2,500 gross actually costs you €3,125 per month including contributions.
Calculation with practical example
Here's the step-by-step process for determining your exact labor percentage:
💡 Example restaurant:
Monthly revenue: €45,000
- Head chef: €3,500 gross + 25% contributions = €4,375
- Sous chef: €2,800 gross + 25% contributions = €3,500
- 2 servers: €2,400 × 2 + 25% contributions = €6,000
- Dishwasher: €2,200 gross + 25% contributions = €2,750
Total staff costs: €16,625
Percentage: (€16,625 / €45,000) × 100 = 36.9%
Are your staff costs too high?
Anything above 38% typically signals trouble ahead. But dropping below 25% often means you're running skeleton crews that'll hurt service quality and customer satisfaction.
- Above 40%: Action needed - too much staff or too low revenue
- 35-40%: On the high side, check if this is structural
- 28-35%: Healthy percentage for most restaurants
- Below 25%: Possibly too few staff, risk of poor service
💡 Seasonal influence:
In quiet months (January, February) staff costs can rise to 45%. In busy months (December, summer) they drop to 25-30%. Look at the annual average.
How to reduce your staff costs
Several proven strategies can optimize labor expenses without sacrificing operational quality:
- Flexible schedules: More staff on busy days, fewer on quiet days
- Cross-training: Staff who can work both kitchen and service
- More efficient mise-en-place: Better preparation saves time
- Technology: Ordering app or self-service reduces service staff
Tracking staff costs in practice
Monitor your labor percentage monthly to catch problems early. Consistent deviations from your target range require immediate attention and adjustment. This pattern we see repeatedly in restaurant financials - owners who track monthly outperform those who only review quarterly by 15-20%.
Management tools like KitchenNmbrs automatically calculate these percentages and alert you to concerning trends before they become serious problems.
How do you calculate your staff cost percentage?
Gather all staff costs from one month
Add up all gross wages, plus employer contributions (approximately 25% extra), holiday pay, pension and any external staff. Don't forget temporary or on-call staff.
Determine your total revenue for that same month
Use your revenue excluding VAT. You'll find this in your POS system or accounting. Make sure you use the same period as for staff costs.
Calculate the percentage
Divide total staff costs by revenue and multiply by 100. Formula: (Staff costs / Revenue) × 100 = percentage of revenue.
✨ Pro tip
Track your staff percentage weekly during your first 6 months of operation, then monthly once you establish patterns. Dutch hospitality businesses that monitor labor costs weekly show 18% better profit margins than those checking quarterly.
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
Should I include employer contributions in staff costs?
Absolutely. Employer contributions add roughly 25% to every gross wage you pay. That €2,000 monthly salary actually costs your business €2,500 when you include all mandatory contributions.
What if my staff costs consistently run above 40%?
You're likely overstaffed for your current revenue levels, or your sales have dropped significantly. Review your scheduling patterns first, then examine whether recent revenue declines are temporary or permanent.
How do seasonal fluctuations affect these benchmarks?
Expect major swings throughout the year - winter months can push costs to 45% while peak summer periods might drop them to 25%. Focus on your 12-month rolling average rather than individual month spikes.
Do temporary and freelance workers count toward these percentages?
Yes, every labor expense counts regardless of employment status. Include temps, freelancers, consultants, and any other paid labor in your calculations for accurate tracking.
📚 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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