I am a partner in a full service restaurant. When going over the numbers with my partner, do I include my 70 plus hour work week into the average payroll percentage? I explained to him before we started that it would hover around the 25-27% mark.
When I do my payroll I do not include my salary. My payroll percentage is based solely on hourly employees. I goal myself for 18% Labor each week and it works out nicely. -J_r0kk
Only that I goal for 21% which includes a manadatory superannuation payment of 9% of gross wage for anyone over the age of 18.
The industry average where I am is around 27% so we are happy with 21%, plus it will drop as our sales increase.
What all do you include in wages to come up with a wage percentage? Do you include delivery charges that turn into run money for the drivers?
If your hours are for operational work I would include them because if you don’t work them, you would have to hire someone else. That has to be part of the picture in evaluating your labor cost. This is especially true if thhe “partner” is not working in the place. Your “wages” should come BEFORE profit is calculated.
For what it is worth, labor is more like 31% where we are located.