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U.S. Restaurant Labor Costs Are Well Above Historical Averages

by TheDailyHotelier
August 28, 2025
in News & Trends
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U.S. Restaurant Labor Costs Are Well Above Historical Averages
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Labor prices represented an outsized share of restaurant outlays final yr. That’s one of many observations from the 2025 version of the Nationwide Restaurant Affiliation’s Restaurant Operations Data Abstract, which was launched final week. 

The Summary relies on monetary and working knowledge offered by greater than 900 restaurant operators nationwide. 

Amongst fullservice respondents to the survey, salaries and wages (together with advantages) represented a median of 36.5% of gross sales in 2024. Salaries and wages (together with advantages) represented a median of 31.7% of gross sales amongst limited-service survey respondents.

These readings have been elevated when in comparison with earlier editions of this report. On common within the 2010, 2013 and 2016 experiences, salaries and wages (together with advantages) represented roughly 33% of gross sales amongst fullservice respondents and roughly 28% of gross sales amongst limited-service survey respondents.

Along with labor prices, the Summary comprises knowledge for a number of different value classes, akin to meals, occupancy, utilities, advertising and marketing and extra. Moreover, the information is offered by varied attributes, together with common test measurement, annual gross sales quantity, measurement of group and restaurant location.  

This data may help restaurant operators sharpen monetary efficiency and determine value classes the place knowledge may considerably fluctuate by sort of operation. By analyzing working prices, restaurant operators might detect potential issues, decide learn how to handle prices, and turn into extra environment friendly. 

The 2025 version of the Restaurant Operations Information Summary is out there for buy on the Affiliation’s store.

Word: The info within the 2025 Restaurant Operations Information Summary shouldn’t be meant to signify requirements or objectives for particular person eating places, neither is the report an try by the Nationwide Restaurant Affiliation to set or alter business costs or working ratios. Reasonably, the information and associated ‘Analyze Your Operation’ worksheet are meant for use as administration instruments to assist restaurant operators gauge their restaurant’s efficiency.



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