Research
August 27, 2025

Restaurant labor costs are well above historical averages

Elevated labor costs continue to pressure the bottom line.

Labor costs represented an outsized share of restaurant outlays last year. That’s one of the observations from the 2025 edition of the National Restaurant Association’s Restaurant Operations Data Abstract, which was released last week. 

The Abstract is based on financial and operating data provided by more than 900 restaurant operators nationwide. 

Among fullservice respondents to the survey, salaries and wages (including benefits) represented a median of 36.5% of sales in 2024. Salaries and wages (including benefits) represented a median of 31.7% of sales among limited-service survey respondents.

These readings were elevated when compared to previous editions of this report. On average in the 2010, 2013 and 2016 reports, salaries and wages (including benefits) represented approximately 33% of sales among fullservice respondents and approximately 28% of sales among limited-service survey respondents.


In addition to labor costs, the Abstract contains data for several other cost categories, such as food, occupancy, utilities, marketing and more. Additionally, the data is presented by various attributes, including average check size, annual sales volume, size of community and restaurant location.  

This information can help restaurant operators sharpen financial performance and identify cost categories where data could substantially vary by type of operation. By analyzing operating costs, restaurant operators may detect potential problems, determine how to manage costs, and become more efficient. 

The 2025 edition of the Restaurant Operations Data Abstract is available for purchase on the Association’s store.

Note: The data in the 2025 Restaurant Operations Data Abstract is not intended to represent standards or goals for individual restaurants, nor is the report an attempt by the National Restaurant Association to set or adjust industry prices or operating ratios. Rather, the data and related ‘Analyze Your Operation’ worksheet are intended to be used as management tools to help restaurant operators gauge their restaurant’s performance.