What is the UK National Living Wage in 2026?

From April 2026, the UK National Living Wage for workers aged 21 and over is £12.71 per hour. The rate for 18-20 year olds is £10.85/hr, and for 16-17 year olds and apprentices it is £8.00/hr.

How can I reduce labour costs in my restaurant?

Schedule based on demand rather than running the same rota every week, track actual hours vs scheduled hours using GPS clock-in, cross-train your team to cover multiple roles, and reduce no-shows by enabling staff to arrange their own shift swaps.

Free Tool

Restaurant Labour Cost Calculator

Find out what percentage of your revenue goes to staff wages. Compare against UK hospitality benchmarks and spot where you can save.

This free labour cost calculator is built for UK hospitality operators — pub landlords, cafe owners, restaurant managers, bar managers, and anyone running a venue where wages are the biggest controllable cost on the P&L. Enter your weekly revenue, headcount, average hourly rate and average hours per staff member, and the calculator tells you what percentage of takings is going on wages, your weekly, monthly and annual wage bill, and an estimated cost per cover.

It uses the 2026 UK National Living Wage (£12.71/hr for 21+) and benchmarks your result against the 25–35% range that most UK pubs, cafes and restaurants sit inside. If you're running hot — above 40% — it flags that too, so you can see at a glance whether overstaffing, unplanned overtime or a soft sales week is eating your margin. No sign-up, no email required. Just a quick gut-check you can run before you publish next week's rota.

Enter your numbers

Weekly revenue (gross)

£

Number of staff

Average hourly rate

£

UK National Living Wage (21+) is £12.71/hr from April 2026

Average hours per staff member per week

What is labour cost percentage?

Labour cost percentage is the proportion of your revenue that goes to paying staff wages. It's one of the most important metrics for any hospitality business. In the UK, the typical range for restaurants, pubs, and cafes is 25–35% of gross revenue. Quick-service venues tend to be lower (20–25%), while fine dining often runs higher (30–40%).

How to reduce your labour costs

check Schedule based on demand. Match staffing levels to your busy and quiet periods rather than running the same rota every week.
check Track actual hours vs. scheduled hours. Late clock-ins and unapproved overtime add up fast. GPS clock-in removes guesswork.
check Cross-train your team. Staff who can cover multiple roles give you more flexibility without hiring extra heads.
check Reduce no-shows with shift swaps. Let staff arrange their own cover instead of leaving you short-handed.

UK minimum wage rates (April 2026)

Age Group	Hourly Rate
21 and over (National Living Wage)	£12.71
18 to 20	£10.85
16 to 17	£8.00
Apprentice	£8.00

beach_access

Also useful: Holiday Entitlement Calculator

Calculate statutory holiday for full-time, part-time, and zero-hours staff. Covers pro-rata and the 12.07% accrual method.

Try it free