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In reply to the discussion: What are your platform ideas for the Democratic Party? [View all]Abolishinist
(2,657 posts)not out of line. Labor costs typically run from 25% for a fast-food operation to 35% for casual/upscale dining. In my state of CA, the minimum wage for fast food workers is $20/hour, so we are probably on the higher end.
This from Restaurant 365...
"Labor costs are a significant expense for any restaurant, and they can significantly impact a restaurants profitability. An old rule of restaurant expenses used to be the 30/30/30/10 breakup, with 30% for labor costs, 30% for food costs, 30% for overhead, and 10% in net operation profit (NOP).
In todays environment, with rising labor costs, this model has changed. For most restaurants, labor costs typically run closer to 35% of total expenses, making them the new highest expense over food costs. With overhead costs usually being more fixed, many have looked to reduce food costs to compensate for the rising labor costs. That said, labor costs can vary depending on the type of restaurant, location, and other factors."
https://www.restaurant365.com/resources/metric-monday-labor-costs/
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