Prime Cost Calculator
Calculate your restaurant's prime cost (food + labor costs) and analyze profitability
Revenue
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Food & Beverage Costs
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Labor Costs
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Results
Enter values and click Calculate to see results
Understanding Prime Cost
What is Prime Cost?
Prime cost is the sum of your food costs and labor costs, representing the two largest controllable expenses in restaurant operations. It's a critical metric for measuring operational efficiency and profitability.
Prime Cost Formula:
Prime Cost = Food Costs + Labor Costs
Prime Cost % = (Prime Cost ÷ Total Revenue) × 100
Industry Benchmarks
Excellent: 50-55%
Outstanding cost control and efficiency
Good: 55-60%
Good operational performance
Fair: 60-65%
Room for improvement
Poor: 65%+
Immediate action required
Optimization Strategies
Food Cost Control
- • Negotiate better supplier contracts
- • Implement portion control
- • Reduce food waste
- • Optimize menu mix
- • Regular inventory management
Labor Cost Management
- • Optimize staff scheduling
- • Cross-train employees
- • Improve productivity
- • Monitor overtime costs
- • Use technology for efficiency
Revenue Enhancement
- • Strategic menu pricing
- • Upselling and cross-selling
- • Improve table turnover
- • Enhance customer experience
- • Implement loyalty programs