Prime cost calculator
Prime cost is your two biggest costs added together: what you spend on food and drinks, and what you spend on people. Keep it near 60% of sales and the rest of the P&L usually works.
Frequently asked questions
What is prime cost in a restaurant?
Prime cost = cost of goods sold (food, beverage, packaging) + total labor cost (wages, salaries, payroll taxes and benefits). It is usually shown as a % of total sales.
What is a good prime cost percentage?
60% of sales or less is the common target. Quick-service restaurants often reach 55–60%, full-service ones 60–65%. Above 65% leaves little for rent, utilities and profit.
How often should I calculate prime cost?
Weekly. Monthly numbers arrive too late to fix anything. A weekly inventory count and payroll report are enough to do it in a few minutes.