Restaurant Labor Savings Calculator

Estimate restaurant labor savings by reducing overtime and optimizing regular work hours through better scheduling.

Enter a few numbers about your hours and wages to estimate what better scheduling and less overtime could save you each month and year.

ESTIMATE ANNUAL LABOR SAVINGS

REDUCE OVERTIME COSTS

OPTIMIZE REGULAR WORK HOURS

SEE YOUR LABOR COST %

PLAN ACROSS MULTIPLE LOCATIONS

Step 1: Enter Your Numbers

Use figures for one typical location.

Example values shown. The pre-filled numbers are illustrations only, not industry benchmarks. Replace them with your own figures.

Your Restaurant

Number of locations

Monthly revenue per location

Weekly Labor, Per Location

Average hourly wage

/ hr

Average regular (straight-time) pay across hourly staff.

Regular hours per week

hrs

All straight-time hours. Don't include overtime.

Overtime hours per week

hrs

Only hours paid at the overtime rate (1.5×).

Your Improvement Goals

Reduce regular hours by

Treated as eliminated hours: removed from the schedule and no longer paid.

Reduce overtime hours by

Assumed to be reassigned to regular-pay hours. The work still gets done, so only the overtime premium (the extra 0.5× wage) is saved.

These percentages are your own assumptions about what better scheduling could achieve, not industry benchmarks.

Step 2: Your Estimated Savings

1 location

Estimated Annual Labor Savings$28,288$544 per week

Monthly Savings$2,357

Labor Cost % of Revenue30.9% → 29.4%1.57 pt improvement

Regular Hours Eliminated / Yr1,560

OT Hours Shifted / Yr208Still worked, at regular pay

Eliminated regular hours

Monthly$2,210

Annually$26,520

Overtime premium avoided

Monthly$147

Annually$1,768

Total savings

Monthly$2,357

Annually$28,288

Based on your inputs, your restaurant could potentially save about $28,288 a year, mostly from eliminating regular hours. Labor would fall from 30.9% to 29.4% of revenue.

The 208 overtime hours a year you plan to reduce are assumed to be worked at regular pay instead, so only the overtime premium is counted as savings.

Estimates only, based on your assumptions. Savings are not guaranteed.

How We Calculate Your Savings

Reduced regular hours are eliminated. Savings = regular hours × wage × your regular-hour reduction. These hours are removed from the schedule and count as regular labor hours eliminated.
Reduced overtime hours are reassigned to regular pay. The work still gets done, so these hours are not counted as eliminated. Only the overtime premium is saved: overtime hours × wage × 0.5 × your overtime reduction (overtime is assumed to be paid at 1.5×).
Hours: regular hours eliminated per year = weekly regular hours × reduction × 52. Overtime hours shifted to regular pay per year = weekly overtime hours × reduction × 52. The two are shown separately and never added together.
Monthly = weekly × 4.333. Annual = weekly × 52. Group totals = one location × number of locations.
Labor cost % = monthly labor cost (regular pay + overtime pay) ÷ monthly revenue × 100. Payroll taxes and benefits aren't included.
Results are estimates based on the figures you enter. Actual costs depend on wage and overtime rules, staffing needs, taxes, benefits and how your restaurant runs. This is for planning only, not legal, tax, payroll or financial advice.

Frequently Asked Questions

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