What is the 30/30/30/10 rule for restaurants?
The 30/30/30/10 rule is a guideline for allocating restaurant revenue: 30% for food costs, 30% for labor, 30% for overhead, and 10% for profit. It helps operators maintain balanced expenses while targeting sustainable profitability. The Importance of Managing Restaurant Labor Costs An old rule of restaurant expenses used to be the 30/30/30/10 breakup, with 30% for labor costs, 30% for food costs, 30% for overhead, and 10% in net operation profit (NOP).