Can I Afford to Hire? for Restaurant

The decision to hire another employee is one of the most consequential financial calls a restaurant owner makes. Get it right and you unlock more covers, better service, and breathing room for your existing crew. Get it wrong and you're bleeding $3,500–$5,000 a month on a position that eats your margin. The standard hiring threshold in restaurants is the revenue-per-labor-hour ratio: if your team is generating $35–$45 per labor hour and your target is $30–$40, you still have capacity. When that number climbs above $50, your staff is stretched thin, ticket times are slipping, and you're losing customers to slow service. That's when it's time to hire. But the math doesn't stop at wages. A $15/hour line cook costs you closer to $18–$20/hour after payroll taxes, workers' comp, and training. Factor in 2–4 weeks of reduced productivity during onboarding, plus the overtime you're currently paying existing staff that a new hire would eliminate. This calculator walks through section-by-section analysis so you can see whether your FOH needs a server, your BOH needs a prep cook, or your management layer needs a closer before you post that job listing.