Labor is typically the highest operating expense. The Labor Cost Percentage formula `(Total Labor Cost / Total Sales) x 100` helps you gauge efficiency. For most restaurants, 25-35% is the target. Anything over 35% eats directly into profit.
Do this weekly to spot trends before they become losses.
Add up Gross Wages + Payroll Taxes + Benefits + Workers Comp. Do NOT just use hourly wages.
Take your total revenue for the same period (before tax).
Divide Labor by Sales and multiply by 100 to get your percentage.
Prime Cost = Labor Cost + Cost of Goods Sold (COGS). This is the ultimate metric for hospitality.
"Total Prime Cost should essentially never exceed 60% of sales. If Labor is 30%, Food Cost should be 30% or less."
Cutting labor too low (e.g., under 20%) can ruin customer service, leading to lower sales in the long run. Efficiency > Understaffing.
Enter your payroll and sales data to see your percentage.
Yes. If they contribute to the operation, their salary and benefits must be included in the total cost.
Increase sales (marketing), optimize scheduling (cut slack hours), or reduce overtime (better time tracking).
Awards & Recognition
Recognized by industry leaders for value, ease of use, and performance.

Capterra
2026
Software Advice
2026
Software Advice
2026
Capterra
2026
Software Advice
2026
Software Advice
2025
Capterra
2025
Get App
2025
Capterra
2025
Capterra
2025
Capterra
2024
Software World
2023
Software World
2023
Capterra
2019
Get App
2018“The mobile app time clock has revolutionized how we manage our remote team. It's intuitive, accurate, and has saved us countless hours in payroll processing. The GPS feature ensures accountability without being intrusive. It's a game-changer for businesses with a mobile workforce.”
“As a small business owner, I was skeptical about implementing a new time tracking system. But this mobile app has exceeded all my expectations. It's user-friendly, reliable, and the reporting features have given me invaluable insights into our productivity.”
“The integration capabilities of this mobile time clock app are outstanding. It seamlessly connects with our existing HR and payroll systems, creating a streamlined workflow that has significantly reduced errors and improved our overall efficiency.”
“What we love most is the real-time data and reports, which provide clear insights into employee attendance and payroll expenses. Plus, the ease of use means less administrative burden, allowing our HR team to focus on more strategic initiatives. If you’re looking for a reliable payroll solution that enhances efficiency and accuracy, clockit.io is the perfect choice! Highly recommended!”
“ClockIt.io cut our timesheet corrections by more than half. Exports line up perfectly with payroll and the GPS clock-ins keep our field crews honest without creating friction.”
“Geofencing and kiosk mode at each site solved our late punches. Managers love the late alerts and I love closing payroll on Friday in minutes.”
“ClockIt’s overtime rules and approvals gave us immediate savings. Clear audit trails and clean timesheets mean finance isn’t chasing people anymore.”
“We schedule across multiple locations and roles. ClockIt.io handles PTO, availability, and publishes updates to everyone’s phones instantly—no more group chats.”
“Our trainers swap shifts right in the app and confirm attendance. Attendance and payroll line up perfectly—ClockIt just works.”
“Setup was fast and the support team was outstanding. We rolled out ClockIt to 120 staff in a week and adoption was near 100% on day one.”
“The reports in ClockIt.io make our monthly reviews painless. We finally have visibility into attendance trends and actual hours by department.”
“Time‑off requests, approvals, and balances are all in one place. Doctors see who’s off at a glance and we avoid coverage gaps.”
“For crews on the move, ClockIt’s GPS punch-ins and site-based rules keep things accurate. It’s the reliability we were missing before.”
“We tried three tools before ClockIt.io. This is the first one our team actually likes using—and it saves my admin two hours every payroll run.”
“Implementing ClockIt's biometric kiosks eliminated buddy punching overnight. The facial recognition is instant and works perfectly even in our warehouse environment. It's the most secure time tracking decision we've made.”