We've just launched a new feature! Check out the new dashboard.

Labour costs in a restaurant

In brief: Payroll typically represents 30 to 40% of a restaurant's revenue. Between permanent contracts, weekend casual workers, dining room student workers and overtime in the kitchen, every euro counts. Managing labour costs means knowing exactly how much each service, each position and each contract type costs you, then adjusting your schedule accordingly. Shyfter gives you this visibility in real time, by department and by service.

Why restaurant labour costs deserve your full attention

In the restaurant industry, net margins rarely exceed 5 to 10%. Payroll is the first controllable expense. One Saturday evening service with two extra servers means 150 to 200 euros wasted. A month of unplanned overtime in the kitchen is a quarter's results collapsing.

The problem is not the total amount. It is the lack of visibility on the details: how much does the lunch service cost compared to dinner? Does the kitchen absorb more hours than the dining room? Are your weekend casual workers profitable relative to the revenue they generate?

Components of restaurant labour costs

Gross salary and employer contributions

In Belgium, under Joint Committee 302 (Belgian hospitality collective agreement), the total employer cost represents approximately 130 to 140% of gross salary. For a server at the minimum scale, expect a total hourly cost of approximately 18 to 22 euros including contributions. For an experienced head chef, it is 28 to 35 euros.

Premiums and supplements

Split shift work, Sundays, public holidays and night hours generate premiums that increase the total cost. A Sunday service with three servers costs significantly more than a Tuesday with the same headcount. These premiums must be integrated into your profitability calculation per service.

Casual workers and student workers

Casual workers and student workers often have a lower hourly cost (reduced contributions for student workers, no seniority). But their productivity is also lower: they know the menu less well, are slower in service and require more supervision. The right calculation is not simply "how much does a casual worker cost per hour" but "how much does the service cost with a casual worker compared to a permanent employee".

Overtime

In the kitchen, overtime is frequent: a service that overruns, a mise en place that drags on, a dish of the day that is more complex than expected. Each hour of overtime costs 50% more (100% on Sundays). A scheduling tool that alerts you before thresholds are exceeded makes all the difference.

Calculating cost per service and per department

Cost per service (lunch vs dinner)

The lunch and dinner services do not have the same cost profile. Lunch is often shorter (a 2-hour rush), with fewer staff but a lower average spend. Dinner is longer, with more servers and a higher average spend. Divide your payroll by service to identify which is most profitable.

Kitchen vs dining room cost

The kitchen and dining room have different cost structures. The kitchen has higher salaries (qualified chefs), longer hours (mise en place before service) and less flexibility. The dining room has lower salaries but a greater reliance on casual workers and student workers. Shyfter lets you track the cost by section.

The key ratio: labour cost / revenue

The target ratio varies by restaurant type: 25 to 30% for fast casual, 30 to 35% for a traditional restaurant, 35 to 40% for fine dining. Track this ratio weekly, not monthly. A 2-point drift in week 3 is recoverable. Discovered at month end, it is too late.

How Shyfter helps you control costs

Real-time visibility

Shyfter calculates the labour cost of each shift at the moment you schedule it. You immediately see the impact of an extra server on Saturday evening or a casual worker in the kitchen on Sunday. No need to wait for payroll to notice a drift.

Overtime alerts

When a team member approaches the overtime threshold, Shyfter alerts you. You can reassign shifts before premiums apply. Integrated time tracking provides reliable data, not estimates.

Contract mix optimisation

By cross-referencing your scheduling data with your revenue per service, you identify the optimal mix: how many permanent staff, how many casual workers, how many student workers for each type of service. Shyfter retains history to refine your decisions over time.

Automatic export to payroll

Time tracking data, overtime and premiums export to SD Worx, Securex, Acerta and over 50 connectors via the integrations page. No more manual calculation, fewer payroll errors.

Request a demo

Concrete optimisation levers

Schedule based on projected revenue

A Tuesday in January does not need the same staffing as a Saturday in December. Use your sales history to calibrate your schedules. Shyfter lets you duplicate template weeks and adjust based on the activity forecast.

Limit unproductive split breaks

Long breaks (3 hours or more) between lunch and dinner are costly in terms of disruption, even if the hours are not paid. A team member demotivated by excessively long breaks makes errors or resigns. Sometimes a continuous shift with a backup casual worker costs less than a 4-hour split.

Train for versatility

A server who can also manage the bar, or a commis who can help with the wash-up, reduces the need to recruit an additional profile. Versatility is not free (training, adaptation time), but it reduces the marginal cost of each shift.

FAQ

What percentage of revenue does payroll represent in a restaurant?

Between 30 and 40% depending on the type of restaurant. Fast casual targets 25 to 30%, a traditional restaurant 30 to 35%, fine dining can reach 40%. Track this ratio weekly to detect drifts quickly.

How to reduce overtime in the kitchen?

Three levers: schedule mise en place within normal hours (not as overtime), anticipate busy services with a planned backup, and use Shyfter alerts to reassign before the threshold is exceeded. Real-time time tracking is essential for reliable visibility.

Are casual workers really cheaper than permanent employees?

In gross hourly cost, often yes (no seniority, reduced contributions for student workers). But in real service cost, not always: a less experienced casual worker serves fewer tables, makes more errors and requires more supervision. The right calculation integrates productivity, not just hourly cost.

Other guides on restaurants and bars

Ready to transform your workforce management?

Shyfter is more than a scheduling tool. It's a complete workforce management solution designed to save you time.

Request a demo