Prime cost
Prime cost is food cost plus labour cost, as a percentage of sales. It is considered the most important operating number in a restaurant because it combines the two largest variable expenses.
Prime cost is food cost plus labour cost, as a percentage of sales. It is considered the most important operating number in a restaurant because it combines the two largest variable expenses.
Common rule: keep prime cost under 60–65% of sales. Above that it is hard to make a profit after rent and fixed costs. Use the free prime-cost calculator.
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How often should I calculate it?
Weekly ideally, monthly at minimum, so you see the trend early.