How to calculate labor cost 👇🏼 Labor Cost per Dish = (Minutes to Make the Dish / 60) x Hourly Wage Here’s an example: 🥗 A basic salad takes ~15 minutes from prep to assembly. 👩‍🍳 Your cook earns $15/hour. That means you’re paying $3.75 in labor before food cost is even added. This is why judging dishes by food cost alone is a trap. A “cheap” menu item with heavy prep can actually be one of your least profitable. Smart operators track prime cost: Prime Cost = Food Cost Labor Cost If you want
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Why In-N-Out DOUBLED Their Labor Costs and Won BIG! While most fast food chains cut wages, In-N-Out took the opposite path. Starting pay begins at $20 per hour. Managers make over $200K a year with bonuses. That’s nearly triple the federal minimum wage and double what most competitors pay. But here’s what restaurant owners need to see: it’s not just generous, it’s smart. The fast food industry averages 150% turnover per year. In-N-Out? Just 20%. Lower turnover means less training, fewer mistakes
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