Labour cost as a share of sales, counting what wages leave out, and prime cost: food and labour together, the two biggest costs a restaurant controls.
Labour cost % = (wages + everything else you spend on staff) ÷ sales × 100. Everything else means employer contributions such as PF and ESI in India, benefits, overtime, staff meals and accommodation if you provide them.
Prime cost % = food cost % + labour cost %.
Wages of 2,40,000 a month plus 12% for contributions, meals and overtime come to 2,68,800. On sales of 10,00,000 that is a labour cost of 26.9%. With a food cost of 31%, prime cost is 57.9% of sales.
Labour cost varies widely by format: full table service needs far more people per bill than a counter or a cloud kitchen. Prime cost is often quoted as a rule of thumb to keep somewhere around 60 to 65% of sales; your own trend month to month is the better guide.
EasyBills costs every dish from its recipe, tracks stock as plates are sold, and keeps real books, so food cost, margin and profit are always up to date.
Add up wages and everything else you spend on staff (employer contributions, benefits, overtime, staff meals), divide by sales for the same period and multiply by 100.
Food cost plus labour cost, usually as a percentage of sales. It is the part of the costs the restaurant controls day to day, which is why many owners watch it more closely than either number alone.
Either works as long as you are consistent. Many restaurants count them as a staff cost, so the food cost reflects what was sold to guests.