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Restaurant prime cost calculator: are you under 60%?
Food plus labour, as a share of sales, for one period. The one number that says whether there is room for rent and profit.
Skip the reading. The tool does this maths for you, free, as you type.
Check your prime costPrime cost is cost of goods plus all labour, including payroll taxes and benefits, divided by sales. It is the biggest number you can move this week, which is why it is the one to watch weekly.
The formula
Prime cost % = (food and drink cost + total labour) ÷ sales × 100. Same period for all three. A week is best; a month is fine.
What a good number looks like
Healthy. Room for occupancy costs and profit.
Survivable, thin. Find two points in scheduling or pricing.
Usually a loss after rent. Act this week.
What to do about it
- Include every labour cost: owner wages, payroll tax, WSIB, benefits.
- Look at food and labour separately; the fix is different.
- The full explainer is in the prime cost guide.
Now do it with your numbers.
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Check your prime cost