The combined cost of food, beverage, and labor. For most restaurants, prime costs should stay between 55-65% of total revenue.
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Prime Cost
The combined cost of food, beverage, and labor. For most restaurants, prime costs should stay between 55-65% of total revenue.
Related terms
- Food Cost Percentage — The ratio of food costs to food sales, expressed as a percentage. Most independent operators target 28-35% for profitability.
- Menu Profitability — Measuring the profit contribution of each menu item by comparing sales revenue against ingredient costs and required preparation labor.