---
title: How To Reduce Your Restaurant's Labor Cost
description: In this article, we will help you better understand restaurant labor costs and how you can control and optimize them for your restaurant.
image: https://restaurant.eatapp.co/hubfs/restaurant-employee-jpeg.jpeg
---

[![Eat App Logo](https://restaurant.eatapp.co/hubfs/Eatapp-2023/Landing-page/eat-app-logo.svg)](https://restaurant.eatapp.co)

[Log in](https://admin.eatapp.co/sign_in)

- Product
  
  Product
  
  Features
  
    - [![Online reservations](https://restaurant.eatapp.co/hubfs/EAtapp-2022/images/2023-updated-home/menu-icons/bx_globe.svg) Online Reservations](https://restaurant.eatapp.co/restaurant-reservation-software)
    - [![Powered by AI](https://restaurant.eatapp.co/hubfs/Powered%20by%20AI.svg) AI Powered](https://restaurant.eatapp.co/ai-restaurant-software)
    - [![Booking channels](https://restaurant.eatapp.co/hubfs/EAtapp-2022/images/2023-updated-home/menu-icons/Vector.svg) Booking Channels](https://restaurant.eatapp.co/booking-channels)
    - [![WhatsApp Brand icon (1)](https://restaurant.eatapp.co/hubfs/WhatsApp%20Brand%20icon%20(1).svg) WhatsApp Messaging](https://restaurant.eatapp.co/whatsapp-messaging-for-restaurants)
    - [![Table management](https://restaurant.eatapp.co/hubfs/EAtapp-2022/images/2023-updated-home/menu-icons/Vector%20(1).svg) Table management](https://restaurant.eatapp.co/table-management)
    - [![loyality-icon](https://restaurant.eatapp.co/hubfs/eatapp-2024/loyality-icon.svg) Loyalty Suite](https://restaurant.eatapp.co/loyalty-suite)
    - [![Guest database and crm](https://restaurant.eatapp.co/hubfs/EAtapp-2022/images/2023-updated-home/menu-icons/Group%20289293.svg) Guest database & CRM](https://restaurant.eatapp.co/crm-restaurants)
    - [![shift-management-icon](https://restaurant.eatapp.co/hubfs/shift-management-icon.svg) Shift management](https://restaurant.eatapp.co/shift-management)
    - [![reports and trends](https://restaurant.eatapp.co/hubfs/EAtapp-2022/images/2023-updated-home/menu-icons/Group%20289294.svg) Reports & Trends](https://restaurant.eatapp.co/analytics)
    - [![pay-at-table](https://restaurant.eatapp.co/hubfs/Eatapp-2025/images/pay-at-table/pay-at-table.svg) Pay At Table](https://restaurant.eatapp.co/pay-at-table)
    - [![Waitlist](https://restaurant.eatapp.co/hubfs/EAtapp-2022/images/2023-updated-home/menu-icons/Group%20289295.svg) Waitlist](https://restaurant.eatapp.co/waitlist)
    - [![event-management](https://restaurant.eatapp.co/hubfs/Eatapp-2025/global/icons/event-management.svg) Event Management](https://restaurant.eatapp.co/event-management-software)
    - [![review-management](https://restaurant.eatapp.co/hubfs/Eatapp-2025/images/review-management.svg) Review Management](https://restaurant.eatapp.co/review-management)
    - [![venue-management](https://restaurant.eatapp.co/hubfs/Eatapp-2025/venue-management.svg) Venue Management](https://restaurant.eatapp.co/venue-management)

  Eat App for
  
    - [![Host Stand Image](https://restaurant.eatapp.co/hs-fs/hubfs/Eatapp-2025/home/Host%20Stand%20Image.webp?width=400&height=202&name=Host%20Stand%20Image.webp) ![Host stand](https://restaurant.eatapp.co/hubfs/eva_person-outline.svg) Host Stand](https://restaurant.eatapp.co/host-stand)
    - [![Dine In Image](https://restaurant.eatapp.co/hs-fs/hubfs/Eatapp-2025/home/Dine%20In%20Image.webp?width=400&height=202&name=Dine%20In%20Image.webp) ![dine in experience](https://restaurant.eatapp.co/hubfs/fluent_food-24-regular-1.svg) Dine-in Experience](https://restaurant.eatapp.co/dine-in-experience)
    - [![Marketing Image](https://restaurant.eatapp.co/hs-fs/hubfs/Eatapp-2025/home/Marketing%20Image.webp?width=400&height=202&name=Marketing%20Image.webp) ![marketing](https://restaurant.eatapp.co/hubfs/nimbus_marketing.svg) Marketing](https://restaurant.eatapp.co/restaurant-marketing)
    - [![Integrations Image](https://restaurant.eatapp.co/hs-fs/hubfs/Eatapp-2025/home/Integrations%20Image.webp?width=400&height=202&name=Integrations%20Image.webp) ![Integrations](https://restaurant.eatapp.co/hubfs/icon-park-outline_connect.svg) Integrations](https://eatapp.co/integrations)

  [Enterprise sales ![green-arrow](https://restaurant.eatapp.co/hubfs/Eatapp-2025/images/green-arrow.svg)](https://restaurant.eatapp.co/for-hospitality-groups)
  
  [Request demo ![green-arrow](https://restaurant.eatapp.co/hubfs/Eatapp-2025/images/green-arrow.svg)](https://restaurant.eatapp.co/cs/c/?cta_guid=68ca4857-91b1-4db2-824c-4376712a3271&signature=AAH58kEI6d6HW7QesiG7NRf_zGKfpw00dg&utm_referrer=https%3A%2F%2Fapp.hubspot.com%2F&portal_id=3390327&pageId=134702448477&placement_guid=4061114a-c5d0-48e7-a157-a53b2b49732c&click=bdaa4274-956d-45f7-84e0-ee74382ad6de&redirect_url=APefjpHhhS1kTetesBqywNwoHrwbNq-GZOVIXw67IxzkRCvnoRl3bd7B1Qxpua2engDEnPHo4PggEFIL2UlBJ6aT2TsHwO-9Bxk6n8HujPjU2UG2YkaB0CdQOYISHC_ZDgMcLJafABw-_vEAhqZpFX8Wk11SlL41AEuAfrzIWNvuhdY0KgiYtzy2QHcwOaWsm5ArVWyEoChVD2FYdWQgq990hg_BIk9HYRMCzEzbSl-ko4AH7xwIw2JWN_ZMFCyn0WRUqxq4-p6XDZ4Ie-c73i1rfUEEqtIU7g&hsutk=f119a48eaaca834954aba37a26f03d71&canon=https%3A%2F%2Frestaurant.eatapp.co%2F&ts=1758189673927&__hstc=45788219.f119a48eaaca834954aba37a26f03d71.1758094528211.1758094528211.1758094528211.1)
- Customers
  
  Customers
  
  Eat App for
  
    - [![Restaurants Image](https://restaurant.eatapp.co/hs-fs/hubfs/Eatapp-2025/home/Restaurants%20Image.webp?width=400&height=202&name=Restaurants%20Image.webp) ![For restaurants](https://restaurant.eatapp.co/hubfs/fluent_food-24-regular-1.svg) Restaurants](https://restaurant.eatapp.co/software-for-restaurants)
    - [![Enterprise Image](https://restaurant.eatapp.co/hs-fs/hubfs/Eatapp-2025/home/Enterprise%20Image.webp?width=400&height=202&name=Enterprise%20Image.webp) ![Enterprise](https://restaurant.eatapp.co/hubfs/ri_hotel-line.svg) Enterprise](https://restaurant.eatapp.co/for-hospitality-groups)
    - [![Hospitality Image](https://restaurant.eatapp.co/hs-fs/hubfs/Eatapp-2025/home/Hospitality%20Image.webp?width=400&height=202&name=Hospitality%20Image.webp) ![Hospitality groups](https://restaurant.eatapp.co/hubfs/ri_community-line.svg) Hospitality Groups](https://restaurant.eatapp.co/for-hospitality-groups)
    - [![Cafes](https://restaurant.eatapp.co/hubfs/Coffee-1.svg) Cafes](https://restaurant.eatapp.co/software-for-cafes)
    - [![Hotels Image](https://restaurant.eatapp.co/hs-fs/hubfs/Eatapp-2025/home/Hotels%20Image.webp?width=400&height=202&name=Hotels%20Image.webp) ![Hotels](https://restaurant.eatapp.co/hubfs/lucide_concierge-bell.svg) Hotels](https://restaurant.eatapp.co/for-hotels)
    - [![Bars & Brewery Image](https://restaurant.eatapp.co/hs-fs/hubfs/Eatapp-2025/home/Bars%20%26%20Brewery%20Image.webp?width=400&height=202&name=Bars%20%26%20Brewery%20Image.webp) ![Bars & Breweries](https://restaurant.eatapp.co/hubfs/Vector-4.svg) Bars & Breweries](https://restaurant.eatapp.co/software-for-bars)
    - [![Nightlife Image](https://restaurant.eatapp.co/hs-fs/hubfs/Eatapp-2025/home/Nightlife%20Image.webp?width=400&height=202&name=Nightlife%20Image.webp) ![Nightlife](https://restaurant.eatapp.co/hubfs/Clip%20path%20group.svg) Nightlife](https://restaurant.eatapp.co/software-for-nightclubs)

   Case studies

  [View all](https://restaurant.eatapp.co/blog/topic/case-studies)

  ![case-studies-icon](https://restaurant.eatapp.co/hubfs/Eatapp-2025/home/case-studies-icon.svg)
  
  ### [Moving from Pen and Paper to Reservation Software](https://restaurant.eatapp.co/blog/moving-pen-paper-to-reservation-software)
  
  Our latest case study takes a look at Bombay Bungalow - a..

  ![case-studies-icon](https://restaurant.eatapp.co/hubfs/Eatapp-2025/home/case-studies-icon.svg)
  
  ### [Providing guests with seamless online booking options](https://restaurant.eatapp.co/blog/providing-guests-with-a-seamless-online-booking-option-and-improving-guest-loyalty)
  
  Our latest case study takes a look at not one but two exquisite...

  [Enterprise sales ![green-arrow](https://restaurant.eatapp.co/hubfs/Eatapp-2025/images/green-arrow.svg)](https://restaurant.eatapp.co/for-hospitality-groups)
  
  [Request demo ![green-arrow](https://restaurant.eatapp.co/hubfs/Eatapp-2025/images/green-arrow.svg)](https://restaurant.eatapp.co/cs/c/?cta_guid=68ca4857-91b1-4db2-824c-4376712a3271&signature=AAH58kEI6d6HW7QesiG7NRf_zGKfpw00dg&utm_referrer=https%3A%2F%2Fapp.hubspot.com%2F&portal_id=3390327&pageId=134702448477&placement_guid=4061114a-c5d0-48e7-a157-a53b2b49732c&click=bdaa4274-956d-45f7-84e0-ee74382ad6de&redirect_url=APefjpHhhS1kTetesBqywNwoHrwbNq-GZOVIXw67IxzkRCvnoRl3bd7B1Qxpua2engDEnPHo4PggEFIL2UlBJ6aT2TsHwO-9Bxk6n8HujPjU2UG2YkaB0CdQOYISHC_ZDgMcLJafABw-_vEAhqZpFX8Wk11SlL41AEuAfrzIWNvuhdY0KgiYtzy2QHcwOaWsm5ArVWyEoChVD2FYdWQgq990hg_BIk9HYRMCzEzbSl-ko4AH7xwIw2JWN_ZMFCyn0WRUqxq4-p6XDZ4Ie-c73i1rfUEEqtIU7g&hsutk=f119a48eaaca834954aba37a26f03d71&canon=https%3A%2F%2Frestaurant.eatapp.co%2F&ts=1758189673927&__hstc=45788219.f119a48eaaca834954aba37a26f03d71.1758094528211.1758094528211.1758094528211.1)
- [Pricing](https://restaurant.eatapp.co/pricing)
  
  Pricing
- [How it works?](https://restaurant.eatapp.co/demo)
  
  How it works?
- Resources
  
  Resources
  
  Learn
  
    - [![Eat App Blog](https://restaurant.eatapp.co/hubfs/EAtapp-2022/images/2023-updated-home/menu-icons/Vector%20(2).svg) Blogs](https://restaurant.eatapp.co/blog)
    - [![How to guides](https://restaurant.eatapp.co/hubfs/EAtapp-2022/images/2023-updated-home/menu-icons/Group.svg) Guides & Tools](https://restaurant.eatapp.co/resources-and-guides)
    - [![Help center](https://restaurant.eatapp.co/hubfs/EAtapp-2022/images/2023-updated-home/menu-icons/Vector%20(3).svg) Help Center](https://restaurant.eatapp.co/knowledge)
    - [![case-studies](https://restaurant.eatapp.co/hubfs/Eatapp-2025/images/case-studies.svg) Case Studies](https://restaurant.eatapp.co/blog/topic/case-studies)
    - [![Ai Prompt guide Brand icon](https://restaurant.eatapp.co/hubfs/Ai%20Prompt%20guide%20Brand%20icon.svg) AI Prompt Guides](https://restaurant.eatapp.co/ai-restaurant-guides)
    - [![become a partner](https://restaurant.eatapp.co/hubfs/Eatapp-2025/icons/become%20a%20partner.svg) Become a partner](https://restaurant.eatapp.co/become-a-partner-eat-app)

   Featured blogs

  [View all](https://restaurant.eatapp.co/blog)

  [![](https://restaurant.eatapp.co/hs-fs/hubfs/image%20(16).png?width=200&name=image%20(16).png)](https://restaurant.eatapp.co/blog/eat-app-supy-integration-smarter-restaurant-decisions-with-ai)
  
  ### [Introducing the Eat App × Supy Integration:...](https://restaurant.eatapp.co/blog/eat-app-supy-integration-smarter-restaurant-decisions-with-ai)
  
   Restaurants collect valuable data every day from reservations and...

  [![](https://restaurant.eatapp.co/hs-fs/hubfs/image%20(15).png?width=200&name=image%20(15).png)](https://restaurant.eatapp.co/blog/eat-app-myautobot-voice-ai-integration)
  
  ### [Introducing the Eat App × MyAutobot Voice AI...](https://restaurant.eatapp.co/blog/eat-app-myautobot-voice-ai-integration)
  
   Your restaurant phone handles much more than reservations. Guests...

   AI prompt guides

  [View all](https://restaurant.eatapp.co/resources-and-guides)

  ![TripAdvisor & More Bookings (1)-1](https://restaurant.eatapp.co/hs-fs/hubfs/TripAdvisor%20%26%20More%20Bookings%20(1)-1.png?width=1812&height=1072&name=TripAdvisor%20%26%20More%20Bookings%20(1)-1.png)
  
  ### [Customer Acquisition Strategy eBook](https://restaurant.eatapp.co/free-customer-acquisition-guide-for-restaurants)
  
  How to get more guests online and triple your restaurant revenue.

  ![Google Bookings (1)-2](https://restaurant.eatapp.co/hs-fs/hubfs/Google%20Bookings%20(1)-2.png?width=1812&height=1072&name=Google%20Bookings%20(1)-2.png)
  
  ### [Set Up Google Reservations](https://restaurant.eatapp.co/restaurant-google-my-business-optimization-ebook)
  
  Receive bookings from millions of potential diners searching your restaurant on Google.

   Featured blogs

  [View all](https://restaurant.eatapp.co/blog)

  [![](https://restaurant.eatapp.co/hs-fs/hubfs/image%20(16).png?width=200&name=image%20(16).png)](https://restaurant.eatapp.co/blog/eat-app-supy-integration-smarter-restaurant-decisions-with-ai)
  
  ### [Introducing the Eat App × Supy Integration:...](https://restaurant.eatapp.co/blog/eat-app-supy-integration-smarter-restaurant-decisions-with-ai)
  
   Restaurants collect valuable data every day from reservations and...

  [![](https://restaurant.eatapp.co/hs-fs/hubfs/image%20(15).png?width=200&name=image%20(15).png)](https://restaurant.eatapp.co/blog/eat-app-myautobot-voice-ai-integration)
  
  ### [Introducing the Eat App × MyAutobot Voice AI...](https://restaurant.eatapp.co/blog/eat-app-myautobot-voice-ai-integration)
  
   Your restaurant phone handles much more than reservations. Guests...

  [![service charge](https://restaurant.eatapp.co/hs-fs/hubfs/Eat%20(57)%20(1)-1.webp?width=200&name=Eat%20(57)%20(1)-1.webp)](https://restaurant.eatapp.co/blog/what-is-service-charge)
  
  ### [What Is Service Charge? The 2026 Guide for...](https://restaurant.eatapp.co/blog/what-is-service-charge)
  
   Six people, one long table, a $180 tab. The check lands and the...

  [![](https://restaurant.eatapp.co/hs-fs/hubfs/image%20(14).png?width=200&name=image%20(14).png)](https://restaurant.eatapp.co/blog/eat-app-mews-integration)
  
  ### [Introducing the Eat App × Mews Integration](https://restaurant.eatapp.co/blog/eat-app-mews-integration)
  
   Hotels are increasingly looking for technology that connects the...

   Featured guides & tools

  [View all](https://restaurant.eatapp.co/resources-and-guides)

  ![TripAdvisor & More Bookings (1)-1](https://restaurant.eatapp.co/hs-fs/hubfs/TripAdvisor%20%26%20More%20Bookings%20(1)-1.png?width=200&name=TripAdvisor%20%26%20More%20Bookings%20(1)-1.png)
  
  ### [Customer Acquisition Strategy eBook](https://restaurant.eatapp.co/free-customer-acquisition-guide-for-restaurants)
  
  How to get more guests online and triple your restaurant revenue.

  ![Google Bookings (1)-2](https://restaurant.eatapp.co/hs-fs/hubfs/Google%20Bookings%20(1)-2.png?width=200&name=Google%20Bookings%20(1)-2.png)
  
  ### [Set Up Google Reservations](https://restaurant.eatapp.co/restaurant-google-my-business-optimization-ebook)
  
  Receive bookings from millions of potential diners searching your restaurant on Google.

  ![Instagram Bookings (1)-1](https://restaurant.eatapp.co/hs-fs/hubfs/Instagram%20Bookings%20(1)-1.png?width=200&name=Instagram%20Bookings%20(1)-1.png)
  
  ### Instagram Booking Widget Checklist
  
  Activate your “Book now” button and allows diners to book from your IG profile.

  ![Facebook Integration Rectangle (1)-1-png](https://restaurant.eatapp.co/hs-fs/hubfs/Facebook%20Integration%20Rectangle%20(1)-1-png.webp?width=200&name=Facebook%20Integration%20Rectangle%20(1)-1-png.webp)
  
  ### [Turn Your Social Media Followers Into Guests](https://restaurant.eatapp.co/turn-social-media-followers-into-customers)
  
  This eBook guides you through social media integrations and how you can convert...

   Featured help articles

  [View all](https://restaurant.eatapp.co/knowledge)

  ![Eat App Overview](https://restaurant.eatapp.co/hs-fs/hubfs/Eatapp-2025/home/Eat%20App%20Overview.webp?width=200&name=Eat%20App%20Overview.webp)
  
  ### [Eat App Overview](https://restaurant.eatapp.co/knowledge/eat-app-overview)
  
  Overview of Eat App and our products

  ![Get Started](https://restaurant.eatapp.co/hs-fs/hubfs/Eatapp-2025/home/Get%20Started.webp?width=200&name=Get%20Started.webp)
  
  ### [Getting Started](https://restaurant.eatapp.co/knowledge/getting-started)
  
  How to set up your restaurant

  ![Featured Guides](https://restaurant.eatapp.co/hs-fs/hubfs/Eatapp-2025/home/Featured%20Guides.webp?width=200&name=Featured%20Guides.webp)
  
  ### [Feature Guides](https://restaurant.eatapp.co/knowledge/feature-guides)
  
  Detailed run-down of all our features

  ![FAQs](https://restaurant.eatapp.co/hs-fs/hubfs/Eatapp-2025/home/FAQs.webp?width=200&name=FAQs.webp)
  
  ### [FAQs](https://restaurant.eatapp.co/knowledge/faqs)
  
  We answer your burning questions

   Featured case studies

  [View all](https://restaurant.eatapp.co/blog/topic/case-studies)

  ![Image uploaded from iOS-8-1](https://restaurant.eatapp.co/hs-fs/hubfs/Image%20uploaded%20from%20iOS-8-1.webp?width=200&name=Image%20uploaded%20from%20iOS-8-1.webp)
  
  ### [Case Study: Moving from Pen and Paper..](https://restaurant.eatapp.co/blog/moving-pen-paper-to-reservation-software)
  
  Our latest case study takes a look at Bombay Bungalow - a newly re-branded...

  ![la-perle--jpeg](https://restaurant.eatapp.co/hs-fs/hubfs/la-perle--jpeg.jpeg?width=200&name=la-perle--jpeg.jpeg)
  
  ### [Case Study: Providing guests with..](https://restaurant.eatapp.co/blog/providing-guests-with-a-seamless-online-booking-option-and-improving-guest-loyalty)
  
  Our latest case study takes a look at not one but two exquisite restaurants..

  ![Ula\_hero\_small-scaled](https://restaurant.eatapp.co/hs-fs/hubfs/Ula_hero_small-scaled.webp?width=200&name=Ula_hero_small-scaled.webp)
  
  ### [Case Study: Putting Your Staff First](https://restaurant.eatapp.co/blog/case-study-putting-your-staff-first)
  
  Our latest case study takes a look at Dubai's most awarded F&B group, Solutions..

  ![download (1)](https://restaurant.eatapp.co/hs-fs/hubfs/download%20(1).webp?width=200&name=download%20(1).webp)
  
  ### [Case Study: Managing Large Restaurant Venues](https://restaurant.eatapp.co/blog/case-study-managing-a-large-restaurant-venue)
  
  Our latest case study takes a look at La Cuadra de Salvador, an exclusive..
  
   

   Featured AI prompt guides

  [View all](https://restaurant.eatapp.co/ai-restaurant-guides)

  ![Eat (34) (1)-2](https://restaurant.eatapp.co/hs-fs/hubfs/Eat%20(34)%20(1)-2.webp?width=200&name=Eat%20(34)%20(1)-2.webp)
  
  ### [Simplify your Restaurant Operations with AI](https://restaurant.eatapp.co/free-ai-operations-guide)
  
  Say hello to time spent driving revenue, improving operations..

  ![Eat (18) (1)-2](https://restaurant.eatapp.co/hs-fs/hubfs/Eat%20(18)%20(1)-2.webp?width=200&name=Eat%20(18)%20(1)-2.webp)
  
  ### [Create Responses to Guest Feedback](https://restaurant.eatapp.co/ai-guestfeedback-guide)
  
  Respond thoughtfully to reviews to show appreciation, address concerns..

  ![Fine-Dining-Restaurant-Menu-Design-1](https://restaurant.eatapp.co/hs-fs/hubfs/Fine-Dining-Restaurant-Menu-Design-1.png?width=200&name=Fine-Dining-Restaurant-Menu-Design-1.png)
  
  ### [Create the Ultimate Restaurant Menu with AI](https://restaurant.eatapp.co/ai-menu-guide)
  
  Design a menu that’s not only visually appealing but also tailored to your..

   Become A Partner

  [View all](https://restaurant.eatapp.co/become-a-partner-eat-app)

  ![become-a-partner](https://restaurant.eatapp.co/hs-fs/hubfs/Eatapp-2025/home/become-a-partner.png?width=200&name=become-a-partner.png)
  
  ### [Become a Partner](https://restaurant.eatapp.co/become-a-partner-eat-app)
  
  Boost Revenue with Eat App partner

  ![integration](https://restaurant.eatapp.co/hs-fs/hubfs/integration.png?width=200&name=integration.png)
  
  ### [Integrations](https://eatapp.co/integrations)
  
  Boost Revenue with Eat App integrations

  [Enterprise sales ![green-arrow](https://restaurant.eatapp.co/hubfs/Eatapp-2025/images/green-arrow.svg)](https://restaurant.eatapp.co/for-hospitality-groups)
  
  [Request demo ![green-arrow](https://restaurant.eatapp.co/hubfs/Eatapp-2025/images/green-arrow.svg)](https://restaurant.eatapp.co/cs/c/?cta_guid=68ca4857-91b1-4db2-824c-4376712a3271&signature=AAH58kEI6d6HW7QesiG7NRf_zGKfpw00dg&utm_referrer=https%3A%2F%2Fapp.hubspot.com%2F&portal_id=3390327&pageId=134702448477&placement_guid=4061114a-c5d0-48e7-a157-a53b2b49732c&click=bdaa4274-956d-45f7-84e0-ee74382ad6de&redirect_url=APefjpHhhS1kTetesBqywNwoHrwbNq-GZOVIXw67IxzkRCvnoRl3bd7B1Qxpua2engDEnPHo4PggEFIL2UlBJ6aT2TsHwO-9Bxk6n8HujPjU2UG2YkaB0CdQOYISHC_ZDgMcLJafABw-_vEAhqZpFX8Wk11SlL41AEuAfrzIWNvuhdY0KgiYtzy2QHcwOaWsm5ArVWyEoChVD2FYdWQgq990hg_BIk9HYRMCzEzbSl-ko4AH7xwIw2JWN_ZMFCyn0WRUqxq4-p6XDZ4Ie-c73i1rfUEEqtIU7g&hsutk=f119a48eaaca834954aba37a26f03d71&canon=https%3A%2F%2Frestaurant.eatapp.co%2F&ts=1758189673927&__hstc=45788219.f119a48eaaca834954aba37a26f03d71.1758094528211.1758094528211.1758094528211.1)

[Log in](https://admin.eatapp.co/sign_in)

[![Request Demo](https://no-cache.hubspot.com/cta/default/3390327/4061114a-c5d0-48e7-a157-a53b2b49732c.png)](https://cta-redirect.hubspot.com/cta/redirect/3390327/4061114a-c5d0-48e7-a157-a53b2b49732c) [![Try for free](https://no-cache.hubspot.com/cta/default/3390327/58270d17-5d39-4474-8a2e-f9d7891343cc.png)](https://cta-redirect.hubspot.com/cta/redirect/3390327/58270d17-5d39-4474-8a2e-f9d7891343cc)

,h3

[All blogs](https://restaurant.eatapp.co/blog)![arrow](https://restaurant.eatapp.co/hs-fs/hubfs/eatapp-2024/images/social-icon/arrow.png?width=8&height=12&name=arrow.png) [Operations](https://restaurant.eatapp.co/blog/topic/operations)

# How To Reduce Your Restaurant's Labor Cost

 Published:  March 28, 2022 5 min

 Author

[![Elana Kroon](https://restaurant.eatapp.co/hs-fs/hubfs/Elana%20Kroon%20Eat%20App.webp?width=46&height=46&name=Elana%20Kroon%20Eat%20App.webp)](https://restaurant.eatapp.co/blog/author/elana-kroon)

[Elana Kroon](https://restaurant.eatapp.co/blog/author/elana-kroon)

 Senior Restaurant Specialist at Eat App

 Reviewed by

[![Nezar Kadhem](https://restaurant.eatapp.co/hs-fs/hubfs/Nezar%20Kadhem.webp?width=512&height=512&name=Nezar%20Kadhem.webp)](https://restaurant.eatapp.co/blog/author/nezar-kadhem)

[Nezar Kadhem](https://restaurant.eatapp.co/blog/author/nezar-kadhem)

 Co-founder and CEO of Eat App

[![facebook](https://restaurant.eatapp.co/hubfs/eatapp-2024/images/social-icon/facebook.svg)](https://www.facebook.com/sharer/sharer.php?u=https://restaurant.eatapp.co/blog/how-to-reduce-restaurant-labor-cost)

[![linkedIn](https://restaurant.eatapp.co/hubfs/eatapp-2024/images/social-icon/linkdin.svg)](http://www.linkedin.com/shareArticle?mini=true&url=https://restaurant.eatapp.co/blog/how-to-reduce-restaurant-labor-cost&title=How%20To%20Reduce%20Your%20Restaurant's%20Labor%20Cost)

[![whatsapp](https://restaurant.eatapp.co/hubfs/eatapp-2024/images/social-icon/watsapp.svg)](https://api.whatsapp.com/send?text=How%20To%20Reduce%20Your%20Restaurant)

[![twiter](https://restaurant.eatapp.co/hubfs/eatapp-2024/images/social-icon/twitter.svg)](https://twitter.com/intent/tweet?url=https://restaurant.eatapp.co/blog/how-to-reduce-restaurant-labor-cost&text=How%20To%20Reduce%20Your%20Restaurant's%20Labor%20Cost)

 Author

[![Elana Kroon](https://restaurant.eatapp.co/hs-fs/hubfs/Elana%20Kroon%20Eat%20App.webp?width=46&height=46&name=Elana%20Kroon%20Eat%20App.webp)](https://restaurant.eatapp.co/blog/author/elana-kroon)

[Elana Kroon](https://restaurant.eatapp.co/blog/author/elana-kroon)

 Senior Restaurant Specialist at Eat App

 Reviewed by

[![Nezar Kadhem](https://restaurant.eatapp.co/hs-fs/hubfs/Nezar%20Kadhem.webp?width=512&height=512&name=Nezar%20Kadhem.webp)](https://restaurant.eatapp.co/blog/author/nezar-kadhem)

[Nezar Kadhem](https://restaurant.eatapp.co/blog/author/nezar-kadhem)

 Co-founder and CEO of Eat App

Most new restaurants don’t make it across the 5-year mark. While there are many contributing factors, high costs play a huge role in the failure of restaurants.

Running a restaurant is a costly affair. Labor costs, especially, hold a big chunk of a restaurant’s total cost and can easily pile up and reduce profit margins significantly, which is why it’s important to keep track of your labor spend and understand how you can control and optimize it without affecting your restaurant’s performance.

Because labor is one of the most important aspects of running a business, learning how to control these costs can be difficult. How do you ensure you are not cutting down important employees or taking decisions that might affect your operations negatively?

In this article, we will help you better understand restaurant labor costs and how you can control and optimize them for your restaurant.

Let’s begin by taking an in-depth look into what restaurant labor cost includes.

![restaurant-employee-jpeg](https://restaurant.eatapp.co/hs-fs/hubfs/restaurant-employee-jpeg.webp?width=580&height=360&name=restaurant-employee-jpeg.webp)

## What is restaurant labor cost?

Restaurant Labor Cost refers to all the money that a restaurant spends on its employees. This includes but is not limited to:

- Employee wages
- Employee health care
- Overtime
- Paid time off and sick days
- Bonuses
- Employee uniforms
- Hiring
- Training
- Other benefits like housing, travel, etc.

A restaurant’s labor cost is part of its main [costing metric](https://restaurant.eatapp.co/blog/important-restaurant-metrics), Prime Cost, which is the sum of Cost of Goods Sold (CoGS) and Labor Cost. Restaurants often use prime cost to determine their restaurant’s efficiency. High labor cost leads to high prime cost, which indicates that the restaurant has low efficiency and is lacking in profits.

## Average restaurant labor cost

Generally, a restaurant’s labor cost should not exceed [30% of its gross revenue](https://smallbusiness.chron.com/common-food-labor-cost-percentages-14700.html). However, this number significantly varies from restaurant to restaurant based on different factors like the type of restaurant, size of the restaurant, etc. 

There is no “one-size-fits-all” number for labor costs. A casual restaurant is likely to have lower labor costs compared to a full-service or fine-dining restaurant as there is more emphasis on service at such restaurants.

Here’s a quick look at the average labor cost percentage of different types of restaurants

- **Casual restaurants:** Quick and casual restaurants tend to have a lower labor cost percentage, usually around 25% of gross revenue, as there isn’t much emphasis on service, and the restaurants are mostly self-serve
- **Table service:** Restaurants with table service have higher labor costs as more staff is required for service. The labor cost at table service restaurants ranges between 30-40%.
- **Fine-dining restaurants:** Fine-dining restaurants have higher labor costs as more staff is required to provide the high level of service that customers are paying extra money for. Labor costs at a fine-dining restaurant can go up 40%, or even higher.

These averages can act as a benchmark for restaurant labor cost, however, they do not take into account various factors that may contribute to the costs of restaurants. Your restaurant’s ideal labor cost will depend on your operations and only you can understand what works best for your business.

## How to calculate restaurant labor cost and labor cost percentage

A restaurant’s labor cost is calculated by adding all the labor expenses that took place within a given period of time.

**Labor cost = Salaried employee wages + Hourly employee wages + Compensation + Overtime + Healthcare + Benefits + Hiring + Any other labor-related costs**

The more important metric to better understand your restaurant’s spending is the labor cost percentage, which tells you the percentage of labor cost from your total revenue i.e. how much of your total revenue is being used for labor costs in a given period of time.

Labor cost percentage is calculated by dividing the total labor cost by total revenue. For instance, if you want to calculate the labor cost percentage for one month, you will first derive your restaurant’s total revenue for that month before tax and other deductions, then divide it by the total labor cost for that month, and multiply it by 100 to turn it into a percentage.

**Labor cost percentage = Total Labor Cost / Total Revenue x 100**

For example: Total labor cost for the month = $1,500. 

Total revenue (before deductions) = $600 

**Labor Cost Percentage =** 1500/6000 x 100 = 25%

This means that 25% of your gross revenue has been spent on labor costs.

Labor costs can also be calculated as a percentage of your restaurant’s total operation costs by following the same steps but replacing the total revenue with total operating costs.

**Labor Cost Percentage = Total Labor Cost / Total Operating Costs x 100**

The higher the labor cost, the lower your net profit, which is why it’s important to keep track of and control your restaurant’s labor cost to increase the overall profitability.

[*Learn more about important restaurant metrics like prime costs and operating costs here *](https://smallbusiness.chron.com/common-food-labor-cost-percentages-14700.html)

## How to reduce restaurant labor cost

### Keep track of your labor cost

Given the fact that labor costs can come up to 40% of your revenue, its crucial to keep track to be able to keep them within control. Regularly tracking labor costs helps restaurants identify when the costs are getting too high. This allows restaurant owners to find the problem areas that are leading to the increase in labor cost and immediately take informed decisions to optimize and reduce them.

### Break down your staff into categories

If your employees are all grouped under one category, it can be difficult to assess and understand why your labor costs are increasing. Breaking your workforce into categories based on different factors like the type of employee - bussers, servers, chefs or front of house and back of house, pay type - salaried or hourly wages, or working hours - full time or part-time, can provide a better picture of what’s causing the increase in labor costs. This way, you will be able to identify exactly which category needs to be optimized and cut down instead of unnecessarily optimizing other ones that might be working perfectly.

### Have a highly trained workforce

It’s simple - the more trained your employees are, the better they are likely to perform. Well-trained employees do their job more effectively and efficiently, reducing the number of work hours and getting things done in lesser time. This in turn improves your restaurant’s operational efficiency and saves labor hours, which eventually leads to a lower labor cost.

Cross-training your employees is also a good way for increasing their productivity. Train every employee to perform multiple tasks so that they can help out wherever needed.

[*Create an employee training manual for your restaurant with our free template *](https://restaurant.eatapp.co/blog/restaurant-training-manual-with-examples)

### Reduce employee turnover

High employee turnover is one of the biggest contributors to increase labor costs. Hiring is expensive, and the restaurant industry has one of the highest employee turnover rates, which makes it very difficult for restaurants to control labor costs. The cost of recruiting new employees and training them significantly affects a restaurant’s revenue.

Restaurants should focus on employee retention by providing them with fair wages, competitive benefits, and a good working environment.

The pandemic has also caused a global restaurant employee shortage, which has made employee retention more important than ever. Make sure that your staff is happy, provide them with motivation, and appreciate them for their hard work. A happy employee is less likely to leave and is also likely to perform better and have higher productivity than an unhappy, demotivated, and underappreciated employee.

### Optimize your restaurant operations with technology

One of the best ways to reduce labor costs is to optimize your restaurant’s overall efficiency. The more efficient and productive your restaurant is, the lesser work labor work hours will be required from your employees.

Make use of advanced restaurant technologies like [reservation](https://restaurant.eatapp.co/blog/online-restaurant-reservation-systems) and table management systems to save your employees’ hours and efforts that go into mundane and repetitive tasks like taking reservations, recording guest data, creating restaurant reports, etc. These simple tasks can easily be optimized and automated through systems like [Eat App.](https://restaurant.eatapp.co/) 

Instead, use your employees’ hours on more productive tasks like providing guests with a good customer experience. 

If used correctly, the right technology can become your restaurant’s best and most efficient employee, saving your restaurant tons of hours and money in labor costs. Make sure you’re making use of the advanced systems now available for restaurants to improve your restaurant’s productivity.

*Not sure where to begin?* [*Here are some of the best and most useful technologies for restaurants*](https://restaurant.eatapp.co/blog/technology-in-hospitality-top-trends)

[![Get Started Now Begin a free 14-day trial of Eat App for your restaurant now Sign Up For Your Free Trial](https://no-cache.hubspot.com/cta/default/3390327/fe402565-2bfa-4500-af3f-a1c62440fb2c.png)](https://cta-redirect.hubspot.com/cta/redirect/3390327/fe402565-2bfa-4500-af3f-a1c62440fb2c)

 

Contents

[Try Eat App](https://admin.eatapp.co/sign_up?utm_source=Blog&utm_medium=Sidebar&utm_campaign=restaurant.eatapp.co&utm_content=how-to-reduce-restaurant-labor-cost)

![](https://restaurant.eatapp.co/hs-fs/hubfs/restaurant-employee-jpeg.jpeg?width=670&height=440&name=restaurant-employee-jpeg.jpeg)

Author

[![Elana Kroon](https://restaurant.eatapp.co/hs-fs/hubfs/Elana%20Kroon%20Eat%20App.webp?width=46&height=46&name=Elana%20Kroon%20Eat%20App.webp)](https://restaurant.eatapp.co/blog/author/elana-kroon)

[Elana Kroon](https://restaurant.eatapp.co/blog/author/elana-kroon)

Restaurant Industry Expert at Eat App

Elana Kroon used to work in restaurants before becoming a journalist and expert restaurant industry content creator at Eat App.

[![author-linkedIn](https://restaurant.eatapp.co/hs-fs/hubfs/EAtapp-2022/images/Blog/mdi_linkedin.png?width=24&height=24&name=mdi_linkedin.png)](https://www.linkedin.com/in/elana-kroon-b5ab4771/)

Reviewed by

[![Nezar Kadhem](https://restaurant.eatapp.co/hs-fs/hubfs/Nezar%20Kadhem.webp?width=512&height=512&name=Nezar%20Kadhem.webp) Nezar Kadhem Co-founder and CEO of Eat App](https://restaurant.eatapp.co/blog/author/nezar-kadhem)

He is a regular speaker and panelist at industry events, contributing on topics such as digital transformation in the hospitality industry, revenue channel optimization and dine-in experience.

[![author-linkedIn](https://restaurant.eatapp.co/hs-fs/hubfs/EAtapp-2022/images/Blog/mdi_linkedin.png?width=24&height=24&name=mdi_linkedin.png)](https://www.linkedin.com/in/nezarkadhem/)

**Share this article!**

[![facebook](https://restaurant.eatapp.co/hubfs/EAtapp-2022/December/images/facebook.svg)](https://www.facebook.com/sharer/sharer.php?u=https://restaurant.eatapp.co/blog/how-to-reduce-restaurant-labor-cost)

[![linkedIn](https://restaurant.eatapp.co/hubfs/EAtapp-2022/December/images/linkedin.svg)](http://www.linkedin.com/shareArticle?mini=true&url=https://restaurant.eatapp.co/blog/how-to-reduce-restaurant-labor-cost&title=How%20To%20Reduce%20Your%20Restaurant's%20Labor%20Cost)

[![whatsapp](https://restaurant.eatapp.co/hubfs/EAtapp-2022/images/watsapp-new.svg)](https://api.whatsapp.com/send?text=How%20To%20Reduce%20Your%20Restaurant)

[![twiter](https://restaurant.eatapp.co/hubfs/EAtapp-2022/December/images/twitter.svg)](https://twitter.com/intent/tweet?url=https://restaurant.eatapp.co/blog/how-to-reduce-restaurant-labor-cost&text=How%20To%20Reduce%20Your%20Restaurant's%20Labor%20Cost)

### Related articles

[![tip jar ideas](https://restaurant.eatapp.co/hs-fs/hubfs/Eat%20(62)%20(1)-1.webp?width=314&height=175&name=Eat%20(62)%20(1)-1.webp) 130+ Tip Jar Ideas & Sayings:... In recent years, the way we tip has undergone a...](https://restaurant.eatapp.co/blog/tip-jar-ideas)

[![Free Food Cost Calculator](https://restaurant.eatapp.co/hs-fs/hubfs/Free%20Food%20Cost%20Calculator.png?width=314&height=175&name=Free%20Food%20Cost%20Calculator.png) How to Calculate Food Cost:... A friend of ours once ran a popular Italian spot...](https://restaurant.eatapp.co/blog/how-to-calculate-restaurant-food-cost)

[![Restaurant Business Plan template](https://restaurant.eatapp.co/hs-fs/hubfs/eatapp-2024/images/blog/comrpess-images/Business-Meeting-in-Restaurant.webp?width=314&height=175&name=Business-Meeting-in-Restaurant.webp) How to Write a Restaurant:... A restaurant business planis a framework that...](https://restaurant.eatapp.co/blog/restaurant-business-plan)

[![restaurant swot analysis](https://restaurant.eatapp.co/hs-fs/hubfs/swot2-1.webp?width=314&height=175&name=swot2-1.webp) SWOT Analysis for:... Look, your restaurant may have the best ambiance...](https://restaurant.eatapp.co/blog/restaurant-swot-analysis)

## Join restaurants in 90+ countries using Eat App

[![Get Started](https://no-cache.hubspot.com/cta/default/3390327/e369d415-cd5b-44f6-b759-1024674024e8.png)](https://cta-redirect.hubspot.com/cta/redirect/3390327/e369d415-cd5b-44f6-b759-1024674024e8)

[![Request demo](https://no-cache.hubspot.com/cta/default/3390327/b28b6559-2917-47af-8483-58a791979b58.png)](https://cta-redirect.hubspot.com/cta/redirect/3390327/b28b6559-2917-47af-8483-58a791979b58)

[![Eat App](https://restaurant.eatapp.co/hs-fs/hubfs/Eat%20App%20Logo%20(3).webp?width=144&height=72&name=Eat%20App%20Logo%20(3).webp "Eat App")](https://restaurant.eatapp.co/)

Empowering restaurants, one table at a time Discover seamless dining with Eat App

[![Instagram Logo](https://restaurant.eatapp.co/hubfs/Eatapp-2023/Landing-page/vector-images/social-icons/Instagram-Icon.svg)](https://www.instagram.com/eatapp/) [![Facebook Logo](https://restaurant.eatapp.co/hubfs/Eatapp-2023/Landing-page/vector-images/social-icons/Facebook-Icon.svg)](https://www.facebook.com/eat.app.restaurant.reservations/) [![Twitter](https://restaurant.eatapp.co/hubfs/Eatapp-2023/Landing-page/vector-images/social-icons/Twitter-Icon.svg)](https://twitter.com/eatappco) [![youtube](https://restaurant.eatapp.co/hubfs/Eatapp-2023/Landing-page/vector-images/social-icons/Youtube-Icon.svg)](https://www.youtube.com/channel/UCh6BqA1lGljj3cixt3PQwJA) [![linkedin](https://restaurant.eatapp.co/hubfs/Eatapp-2023/Landing-page/vector-images/social-icons/Linkedin-Icon.svg)](https://ae.linkedin.com/company/eat-app)

[![google play](https://restaurant.eatapp.co/hubfs/Eatapp-2021/google-pay.svg)](https://play.google.com/store/apps/details?id=com.eatapp.clementine&hl=en&gl=US)

[![apple-play-store](https://restaurant.eatapp.co/hubfs/Eatapp-2021/app-store.svg)](https://apps.apple.com/us/app/eat-app-manager-for-iphone/id1481318419)

 Ask AI for a summary of Eat App

[![ChatGPT](https://restaurant.eatapp.co/hs-fs/hubfs/Eatapp-2025/icons/chat-gpt-logo.jpeg?width=52&height=52&name=chat-gpt-logo.jpeg)](https://chatgpt.com/?q=I%27m+a+restaurant+owner+evaluating+Eat+App.+Based+on+their+website%2C+can+you+summarize+what+Eat+App+does%2C+the+restaurant+operations+problems+it+solves%2C+its+reservation+and+table+management+features%2C+CRM+and+marketing+capabilities%2C+AI+features%2C+who+it%27s+built+for%2C+and+the+business+benefits%3F+Website%3A+https%3A%2F%2Frestaurant.eatapp.co%2Fblog%2Fhow-to-reduce-restaurant-labor-cost) [![Claude](https://restaurant.eatapp.co/hs-fs/hubfs/Eatapp-2025/icons/Claude-logo.webp?width=52&height=52&name=Claude-logo.webp)](https://claude.ai/new?q=I%27m+a+restaurant+owner+evaluating+Eat+App.+Based+on+their+website%2C+can+you+summarize+what+Eat+App+does%2C+the+restaurant+operations+problems+it+solves%2C+its+reservation+and+table+management+features%2C+CRM+and+marketing+capabilities%2C+AI+features%2C+who+it%27s+built+for%2C+and+the+business+benefits%3F+Website%3A+https%3A%2F%2Frestaurant.eatapp.co%2Fblog%2Fhow-to-reduce-restaurant-labor-cost) [![Perplexity](https://restaurant.eatapp.co/hs-fs/hubfs/Eatapp-2025/icons/Perplexity-logo.webp?width=52&height=52&name=Perplexity-logo.webp)](https://www.perplexity.ai/?q=I%27m+a+restaurant+owner+evaluating+Eat+App.+Based+on+their+website%2C+can+you+summarize+what+Eat+App+does%2C+the+restaurant+operations+problems+it+solves%2C+its+reservation+and+table+management+features%2C+CRM+and+marketing+capabilities%2C+AI+features%2C+who+it%27s+built+for%2C+and+the+business+benefits%3F+Website%3A+https%3A%2F%2Frestaurant.eatapp.co%2Fblog%2Fhow-to-reduce-restaurant-labor-cost) [![Gemini](https://restaurant.eatapp.co/hs-fs/hubfs/Eatapp-2025/icons/gemini-logo.png?width=52&height=52&name=gemini-logo.png)](https://www.google.com/search?udm=50&aep=11&q=I%27m+a+restaurant+owner+evaluating+Eat+App.+Based+on+their+website%2C+can+you+summarize+what+Eat+App+does%2C+the+restaurant+operations+problems+it+solves%2C+its+reservation+and+table+management+features%2C+CRM+and+marketing+capabilities%2C+AI+features%2C+who+it%27s+built+for%2C+and+the+business+benefits%3F+Website%3A+https%3A%2F%2Frestaurant.eatapp.co%2Fblog%2Fhow-to-reduce-restaurant-labor-cost) [![Grok](https://restaurant.eatapp.co/hs-fs/hubfs/Eatapp-2025/icons/Grok-logo.webp?width=52&height=52&name=Grok-logo.webp)](https://x.com/i/grok?text=I%27m+a+restaurant+owner+evaluating+Eat+App.+Based+on+their+website%2C+can+you+summarize+what+Eat+App+does%2C+the+restaurant+operations+problems+it+solves%2C+its+reservation+and+table+management+features%2C+CRM+and+marketing+capabilities%2C+AI+features%2C+who+it%27s+built+for%2C+and+the+business+benefits%3F+Website%3A+https%3A%2F%2Frestaurant.eatapp.co%2Fblog%2Fhow-to-reduce-restaurant-labor-cost)

Features

- [Reservation system](https://restaurant.eatapp.co/restaurant-reservation-software)
- [Table management](https://restaurant.eatapp.co/table-management)
- [CRM and guest profiles](https://restaurant.eatapp.co/crm-restaurants)
- [Marketing](https://restaurant.eatapp.co/restaurant-marketing)
- [Reports & trends](https://restaurant.eatapp.co/analytics)
- [Waitlist](https://restaurant.eatapp.co/waitlist)
- [WhatsApp messaging](https://restaurant.eatapp.co/whatsapp-messaging-for-restaurants)
- [Integrations](https://eatapp.co/integrations)

Company

- [About us](https://restaurant.eatapp.co/about)
- [Contact us](https://restaurant.eatapp.co/contact-us)
- [Privacy policy](https://restaurant.eatapp.co/privacy)
- [Terms of service](https://restaurant.eatapp.co/terms)
- [Careers](https://careers.eatapp.co/)
- [Demo](https://restaurant.eatapp.co/demo)
- [Pricing](https://restaurant.eatapp.co/pricing)
- [Trust portal](https://trust.eatapp.co/)
- [Become a partner](https://restaurant.eatapp.co/become-a-partner-eat-app)

Resources

- [The 13 Best Reservation Systems](https://restaurant.eatapp.co/blog/online-restaurant-reservation-systems)
- [Guide to Restaurant Marketing](https://restaurant.eatapp.co/restaurant-marketing-guide)
- [Guide to Customer Service](https://restaurant.eatapp.co/blog/restaurant-customer-service)
- [Guide to Making a Restaurant Website](https://restaurant.eatapp.co/blog/how-to-make-a-restaurant-website-a-complete-guide)
- [All articles](https://restaurant.eatapp.co/blog)

Compare us

- [OpenTable](https://restaurant.eatapp.co/compare/opentable-alternative)
- [Resy](https://restaurant.eatapp.co/compare/resy-alternative)
- [Yelp](https://restaurant.eatapp.co/compare/yelp-alternative)
- [SevenRooms](https://restaurant.eatapp.co/compare/sevenrooms-alternative)
- [ResOs](https://restaurant.eatapp.co/compare/resos-alternative)
- [Compare All](https://restaurant.eatapp.co/compare)

© Eat App. All rights reserved.

[Eat App is trusted & secure](https://trust.eatapp.co/)

```json
{
  "@context" : "https://schema.org",
  "@type" : "HowTo",
  "description" : "A step-by-step guide to understanding, calculating, and reducing restaurant labor costs by tracking spend, optimizing staffing, improving training, reducing turnover, and using technology to increase efficiency.",
  "mainEntityOfPage" : {
    "@id" : "https://restaurant.eatapp.co/blog/how-to-reduce-restaurant-labor-cost",
    "@type" : "WebPage"
  },
  "name" : "How to reduce your restaurant's labor cost",
  "publisher" : {
    "@type" : "Organization",
    "name" : "Eat App"
  },
  "step" : [ {
    "@type" : "HowToStep",
    "name" : "Understand what restaurant labor cost includes",
    "text" : "Define labor cost as the total spend on employees, including wages, overtime, paid time off, benefits, training, hiring, uniforms, and other labor-related expenses.",
    "url" : "https://restaurant.eatapp.co/blog/how-to-reduce-restaurant-labor-cost#what-is-restaurant-labor-cost"
  }, {
    "@type" : "HowToStep",
    "name" : "Benchmark your labor cost percentage",
    "text" : "Compare your labor cost percentage to benchmarks by restaurant type to understand whether your labor spend is in a healthy range for your concept.",
    "url" : "https://restaurant.eatapp.co/blog/how-to-reduce-restaurant-labor-cost#average-restaurant-labor-cost"
  }, {
    "@type" : "HowToStep",
    "name" : "Calculate your labor cost and labor cost percentage",
    "text" : "Add all labor expenses for a defined period, then divide total labor cost by total revenue and multiply by 100 to get your labor cost percentage.",
    "url" : "https://restaurant.eatapp.co/blog/how-to-reduce-restaurant-labor-cost#how-to-calculate-restaurant-labor-cost-and-labor-cost-percentage"
  }, {
    "@type" : "HowToStep",
    "name" : "Track labor cost consistently",
    "text" : "Track labor costs regularly to spot spikes early, identify what’s driving the increase, and make faster, data-backed decisions to optimize scheduling and spend.",
    "url" : "https://restaurant.eatapp.co/blog/how-to-reduce-restaurant-labor-cost#keep-track-of-your-labor-cost"
  }, {
    "@type" : "HowToStep",
    "name" : "Break down staffing into categories to find cost drivers",
    "text" : "Segment your team by role, front-of-house vs back-of-house, full-time vs part-time, and hourly vs salaried to pinpoint which categories need optimization.",
    "url" : "https://restaurant.eatapp.co/blog/how-to-reduce-restaurant-labor-cost#break-down-your-staff-into-categories"
  }, {
    "@type" : "HowToStep",
    "name" : "Train and cross-train your team to improve productivity",
    "text" : "Invest in training and cross-training so staff can perform tasks efficiently and cover multiple roles, reducing total labor hours without reducing service quality.",
    "url" : "https://restaurant.eatapp.co/blog/how-to-reduce-restaurant-labor-cost#have-a-highly-trained-workforce"
  }, {
    "@type" : "HowToStep",
    "name" : "Reduce employee turnover",
    "text" : "Improve retention with fair wages, benefits, and a positive work environment to reduce the high costs of recruiting and training replacements.",
    "url" : "https://restaurant.eatapp.co/blog/how-to-reduce-restaurant-labor-cost#reduce-employee-turnover"
  }, {
    "@type" : "HowToStep",
    "name" : "Optimize operations with technology",
    "text" : "Use restaurant technology (like reservation and table management systems) to automate repetitive tasks, reduce manual workload, and reallocate staff time to higher-value guest experience work.",
    "url" : "https://restaurant.eatapp.co/blog/how-to-reduce-restaurant-labor-cost#optimize-your-restaurant-operations-with-technology"
  } ],
  "url" : "https://restaurant.eatapp.co/blog/how-to-reduce-restaurant-labor-cost"
}
```

```json
{
  "@context" : "https://schema.org",
  "@type" : "Article",
  "articleSection" : "Operations",
  "author" : {
    "@type" : "Person",
    "description" : "Elana Kroon used to work in restaurants before becoming a journalist and expert restaurant industry content creator at Eat App.",
    "jobTitle" : "Senior Content Manager at Eat App",
    "name" : "Elana Kroon",
    "sameAs" : [ "https://www.linkedin.com/in/elana-kroon-b5ab4771/" ],
    "url" : "https://restaurant.eatapp.co/blog/author/elana-kroon"
  },
  "dateModified" : "2026-01-28T06:01:22-07:00",
  "datePublished" : "2022-03-28T08:03:44-07:00",
  "headline" : "How To Reduce Your Restaurant's Labor Cost",
  "image" : {
    "@type" : "ImageObject",
    "url" : "https://f.hubspotusercontent20.net/hubfs/3390327/restaurant-employee-jpeg.jpeg"
  },
  "inLanguage" : "en-us",
  "mainEntityOfPage" : {
    "@type" : "WebPage",
    "lastReviewed" : "2026-01-28T06:01:22-07:00",
    "reviewedBy" : {
      "@type" : "Person",
      "description" : "He is a regular speaker and panelist at industry events, contributing on topics such as digital transformation in the hospitality industry, revenue channel optimization and dine-in experience.",
      "jobTitle" : "Co-founder and CEO of Eat App",
      "name" : "Nezar Kadhem",
      "sameAs" : [ "https://www.linkedin.com/in/nezarkadhem/" ]
    }
  },
  "publisher" : {
    "@type" : "Organization",
    "name" : "Eat App"
  }
}
```

```json
{
  "@context" : "https://schema.org",
  "@type" : "BreadcrumbList",
  "itemListElement" : [ {
    "@type" : "ListItem",
    "item" : "https://restaurant.eatapp.co/blog",
    "name" : "All blogs",
    "position" : 1
  }, {
    "@type" : "ListItem",
    "item" : "https://restaurant.eatapp.co/blog/how-to-reduce-restaurant-labor-cost",
    "name" : "How To Reduce Your Restaurant's Labor Cost",
    "position" : 2
  } ]
}
```

```json
{
  "@context" : "https://schema.org",
  "@type" : "ImageObject",
  "contentUrl" : "https://f.hubspotusercontent20.net/hubfs/3390327/restaurant-employee-jpeg.jpeg",
  "license" : "https://restaurant.eatapp.co/blog",
  "url" : "https://f.hubspotusercontent20.net/hubfs/3390327/restaurant-employee-jpeg.jpeg"
}
```

```json
{
  "@context" : "https://schema.org",
  "@type" : "WebSite",
  "description" : "Insights and resources to help restaurants succeed",
  "inLanguage" : "en-us",
  "name" : "Blog",
  "potentialAction" : {
    "@type" : "SearchAction",
    "query-input" : "required name=search_term_string",
    "target" : "https://restaurant.eatapp.co/blog/search/{search_term_string}"
  },
  "sameAs" : [ "https://www.facebook.com/eat.app.restaurant.reservations/", "https://ae.linkedin.com/company/eat-app", "https://twitter.com/eatappco", "https://www.youtube.com/channel/UCh6BqA1lGljj3cixt3PQwJA" ],
  "url" : "https://restaurant.eatapp.co/blog"
}
```