Restaurants
Restaurant prime cost
See the combined food and beverage cost plus loaded labor cost for the same operating period.
Your inputs
Complete the fields for your selected method. Zero means intentionally zero, not unknown. Currency selection labels amounts; it does not convert exchange rates.
How this calculation works
prime cost = food/beverage cost of sales + loaded labor; prime-cost share = prime cost / net sales
Use net sales before sales tax and after refunds/discounts. Food cost is inventory USED, not simply purchases. Loaded labor is the actual chosen employer-cost total. Prime cost excludes rent, utilities and other overhead; the remaining amount is not profit.
What information do I need?
Use records for the same job, equipment or accounting period. Only the fields for your selected entry method are required. An unknown amount is not zero.
Input definitions and where to find them
- Food and beverage cost of sales in period (selected currency): Same-period inventory, labor and POS net-sales totals. Owner records or explicit assumption; no account connection or maintained rate tables required.
- Loaded labor cost in same period (selected currency): Same-period inventory, labor and POS net-sales totals. Owner records or explicit assumption; no account connection or maintained rate tables required.
- Net sales in same period (selected currency): Same-period inventory, labor and POS net-sales totals. Owner records or explicit assumption; no account connection or maintained rate tables required.
Use the Where to find this value controls beside the inputs for available work-it-out helpers. Estimates remain your assumptions; a helper does not verify the source figures.
Worked example
Example amounts use US dollars (USD).
Example answer: Period prime cost is $22,000.00 for the illustrative inputs below.
Example inputs
- Food and beverage cost of sales in period: $12,000.00
- Loaded labor cost in same period: $10,000.00
- Net sales in same period: $40,000.00
- Period prime cost
- $22,000.00
- Prime-cost share of net sales
- 55.00 %
- Sales left for other expenses and profit
- $18,000.00
These illustrative values are not recommended rates or industry averages. Replace every example input with your own figures.
Use the result well
Track two major cost pools.
Keep inputs on the same scope and time basis. Calculations retain precision internally; displayed values generally round to two decimal places, with extra precision for very small values and whole-unit rounding where required. Economic comparisons describe your supplied assumptions and do not guarantee future results.
This tool provides business arithmetic. It does not approve engineering designs, establish legal or tax treatment, select equipment or certify safe operating conditions.