Restaurant Prime Cost
Prime cost (COGS plus all-in labor) and the prime-cost, labor, and COGS percents of sales.
Example
You enter
- Food COGS ($) 32000
- Beverage COGS ($) 8000
- Total labor ($, all-in) 42000
- Total sales ($) 140000
You get
- Prime cost 82000
- Prime cost (%) 58.57
- Labor 30.00%
Checked against published worked examples from: Johnson & Wales University Online.
Details, formula, and sources
ScopeThe single most-watched number on a restaurant P&L because it is the cost the operator controls.
Formula or tableCOGS = food + beverage; prime cost = COGS + total labor; prime/labor/COGS percents are of total sales.
Source and editionStandard restaurant P&L prime-cost definition (NRA / restaurant-accounting practice, by name).
Free accessNRA Restaurant Industry Forecast free at restaurant.org.
What governsEstimate. AHJ and licensed professional govern.
API field namesfood_cost, beverage_cost, labor_cost, total_sales, prime_cost, prime_cost_pct, labor_pct
- Prime-cost benchmark <=~60% of sales full-service, ~55% limited-service (advisory)NRA industry medians