26 Jul How to calculate your staff costs in your restaurant
Staff costs is together with the costs of sales (your food and beverage costs) the main costs you will have in your restaurant or food business.
We are going to show how to work out your staff costs with a general formula. Then we will deep dive into how to work out your costs on a weekly basis so you can adjust your staff based on your sales and make sure that your business model works. In other words, that your staff costs is a certain percentage of your sales. If it was higher your business model would not work and you wouldn’t be able to make a profit.
We will leave you the formulas on how to calculate staff costs below. This is how we do it with our template, but you can create your own, or use software. The idea of this video is that you understand the basics on how to do it. We hope this helps 🙂
You can get the staff cost template here:
Template in GBP pounds £
Template in dollars $
Template in euros €
*Terms and Conditions. No refunds.Please note the spreadsheet is our intellectual property and the sheets are protected to ensure integrity of the system. This spreadsheet is part of our consultancy services and is usually priced higher as it includes individual training and maintenance. Due to high demand, we have managed to make videos so users can “train themselves” to use it. If you find any error in the 24 hours after purchase, we will check it immediately and at no cost. However, any other support will be charged as consultancy.
Staff Costs include:
Gross Salaries: Including hourly wages, salaries, overtime, bonuses, and commissions.
Add Payroll Taxes and Benefits: Including employer contributions such as National Insurance, pension contributions, and any other benefits provided to employees( health insurance, etc).
Incentives and bonuses
Additional Costs: Including costs such as training, uniforms, and meals provided to staff.
Gross Salaries
+ Add Payroll Taxes and Benefits
+ Incentives and bonuses
+ Additional Costs
________________________
Staff Costs
To get staff costs in percentage: Staff costs/Net sales
RECOMMENDED READ: How to improve staff retention and reduce staff costs at your restaurant
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