Overview
Labor is typically 28-35% of restaurant revenue — and the most controllable major expense. But most restaurant owners only see their labor cost when they review financials at month-end. By then, weeks of overstaffing have already hit the P&L. This automation delivers weekly labor data before you schedule the next week, giving you the information when it's actually actionable.
Before you start
- Toast POS with Labor Management module
- Time clock in use for all staff (Toast time clock or third-party integrated)
- Scheduling completed in Toast or integrated scheduling tool
Step-by-step guide (4 steps)
Set up Toast's automated labor reports
In Toast Web > Reports > Scheduled Reports, click 'Create Schedule.' Select 'Labor Summary Report.' Configure: period = previous week (Mon-Sun), delivery = Monday 7am, recipients = owner and all managers who build schedules.
Add the sales + labor comparison
Include both 'Labor Summary' and 'Sales Summary' in the same scheduled report. The critical metric is labor cost as a percentage of sales — you need both numbers together. Toast can combine these in a single report or send them separately.
Set up a labor percentage alert in Zapier
For real-time alerts: connect Toast data to a Google Sheet via Zapier. Create a formula that calculates labor % daily. If the rolling 7-day average exceeds your target (e.g., 32%), trigger a Slack alert to the GM: 'Labor trending high this week — review current schedule.'
Breaking labor down by daypart (morning vs. evening) reveals where the inefficiency is. High lunch labor but low dinner labor means your lunch staffing is wrong, not your overall headcount.
Build a schedule review ritual
Establish a Monday ritual: review the labor report before building next week's schedule. Compare labor % this week vs. last week vs. target. If over target, identify which days and shifts drove it. Adjust next week's schedule accordingly before posting.
What you'll get
Labor cost visibility one week in advance — not one month too late
Data-driven scheduling decisions instead of guesswork
Catches overtime trends before they become expensive
Clear benchmark for comparing week-over-week performance
Common mistakes to avoid
Only looking at total labor cost without comparing to sales (the ratio is what matters)
Not sharing the report with managers who build schedules
Reviewing the report on Friday instead of Monday (too late to affect the current week's schedule)
Frequently asked questions
Do I need coding experience to set up this Toast automation?
No coding is required. This guide walks you through everything using Toast's built-in features and Zapier's visual interface. If you can follow a recipe, you can follow this guide.
How long does this automation take to set up?
Most users complete this setup in 30–60 minutes on their first try. Once set up, it runs completely automatically with zero ongoing effort.
What happens if the automation fails?
Zapier and Make both have error notifications and task history, so you'll know immediately if something goes wrong. We cover troubleshooting steps in the guide above.
Can I customize this automation for my specific business?
Absolutely. The guide includes notes on common customizations. Most automations have multiple variation points — timing, conditions, notification recipients, and more.