Personnel Costs in the Restaurant Industry: Why Now Is the Right Time to Prepare for 2027

The next minimum wage increase has been approved: As of January 1, 2027, it will rise to €14.60—just three months from now. Anyone who doesn’t know their own labor cost ratio right now will be flying blind again next year.

DEHOGA President Guido Zöllick summed up the current situation at the DEHOGA press conference in September 2025: “Personnel costs today account for over 40 percent of revenue” (1)—in many traditional restaurants. According to Zöllick, the cost of goods sold is also well over 30 percent. Together, these two cost categories often account for well over two-thirds of revenue—even before rent, energy costs, or taxes are covered.

The question is no longer whether labor costs are rising. The question is whether your business is prepared for it.

The Numbers at a Glance

• Current personnel costs: over 40 percent of revenue in many businesses
• Minimum wage: €13.90 per hour since January 2026 (+8.4%)— then €14.60 as of January 1, 2027 (+5.0%)
• Cost of goods sold: well over 30 percent of revenue

The comparison highlights the difference: While it is often difficult to reduce the cost of goods sold without compromising on quality or portion size—which guests notice immediately—labor costs are the area where good planning can actually make a difference. And that’s precisely what will become even more important with the next minimum wage increase.

Why now is the right time to take countermeasures

It’s not just a matter of how many staff members are on duty, but also when they’re scheduled and how well that aligns with actual demand. This is precisely where many businesses are still leaving potential untapped: shift schedules based on data from three years ago; staffing “just to be safe” because of a lack of reliable demand forecasting; and overtime that arises because no one takes timely corrective action.

With the minimum wage jump to €13.90 starting in January 2026—according to DEHOGA, the highest percentage increase the Minimum Wage Commission has ever approved, with the exception of the politically mandated increase in 2022 —every inaccurately scheduled shift has already become noticeably more expensive. The next step, at €14.60, takes effect on January 1, 2027. Businesses that clarify their cost structure this fall will enter the new year with a head start rather than facing a surprise in their January payroll.

What businesses can do specifically between now and the end of the year

1. Determine your personnel cost ratio now—not just in January. If you know your current ratio, you can calculate the impact of the 2027 minimum wage increase in advance.
2. Check shift schedules from the last 12 months for over- and understaffing. Fall and winter are ideal times to learn from the experience of the current year before the new rates take effect.
3. Calculate the 2027 budget based on the new minimum wage, not the old one. A business that adjusts its calculations to €14.60 now will avoid a nasty surprise regarding its margin in January.
4. Prepare access to key metrics for the turn of the year. Anyone who wants to see immediately, starting in January 2027, how the increase will affect individual locations should establish the necessary transparency now.

Visibility Instead of Gut Feelings: How Smarta Makes Personnel Costs Transparent

Most management teams know there’s room for improvement in the labor cost ratio. What’s often missing isn’t the will to plan better. What’s missing is quick access to their own numbers: How much are personnel costs this week relative to revenue? Is a store going off track while there’s still time to correct it—or will we only find out at month-end?

This is exactly where Smarta comes in. Instead of manually compiling key figures from the POS system, workforce planning, and accounting, Smarta provides the labor cost ratio and other KPIs directly and clearly—in real time rather than retrospectively, for individual locations as well as for the entire chain. Right now, as the year comes to a close, is the perfect time to establish this transparency.

Do you know your personnel cost ratio off the top of your head—or would you have to do the math first? With sell & pick and Smarta, you’ll have the answer at a glance, even after the next minimum wage increase.

(1) Source: Guido Zöllick, DEHOGA President, statement at the DEHOGA press conference, September 2, 2025, documented by Tageskarte: tageskarte.io
Additional figures on cost and employment trends: DEHOGA Statistical Overview I/2026, DEHOGA Federal Association: PDF download

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