SyncBite · Free tool
Restaurant Prime Cost Calculator
Prime cost is your cost of goods plus all labor — usually 55% to 65% of every dollar that comes in. Punch in three numbers and see where you land, and whether there's any room left for rent and profit.
Your numbers
What you spent on food and drink for the period.
Wages, taxes, and benefits for the same period.
Total revenue over the same period.
Your prime cost
Prime cost % of sales
60.0%
Aim for under 60%; over 65% and profit gets thin.
Estimate only, based on the figures you enter. Pull exact numbers from your P&L for accounting.
How to read your prime cost
Add your food and beverage cost to your total labor for the same stretch, then divide by sales. Under 60% is the target for full-service spots; 60% to 65% is workable but tight; above 65% and there's barely anything left after rent. If you're over, the fix is usually one of two levers: food cost (waste, portioning, supplier prices) or labor (scheduling against actual covers). Check it weekly, not monthly — a few bad weeks add up fast.
FAQ
What is prime cost in a restaurant?
Prime cost is your cost of goods sold (all food and beverage) plus your total labor cost, including taxes and benefits. It's the biggest chunk of restaurant spending and the number most operators watch first, because it's the one you can actually move week to week.
What's a good prime cost percentage?
Full-service restaurants usually target under 60% of sales. Quick-service can run a bit higher on labor and lower on food, with the total landing around 60% to 65%. Above 65%, there's little left to cover rent, utilities, and profit, so that's the line to watch.
How do I lower my prime cost?
Two levers move it. On food cost: cut waste, tighten portioning, and renegotiate or switch suppliers on your priciest items. On labor: schedule against your actual covers by daypart instead of habit, and cross-train so you can run leaner on slow shifts. Track both weekly so you catch a bad trend before it eats the month.
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