Glossary
What is prime cost?
Prime cost is food and beverage cost plus labor cost, usually shown as a percentage of sales.
Prime cost is food and beverage cost plus labor cost, usually shown as a percentage of sales.
It is the two biggest controllable costs in a restaurant, so many owners watch it weekly. Add the cost of goods sold to total labor including payroll taxes and benefits, then divide by sales for the period.
See it on your own menu.
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