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Prime Cost Calculator
Prime cost is the only number that catches the trade between food and labour. Measure it weekly.
Common questions
Weekly or monthly?
Weekly. A month gives you twelve chances a year to notice a problem; a week gives you fifty-two. Use the same period boundaries for sales, inventory and payroll or you'll chase phantom swings.
Does prime cost include rent?
No. Rent, utilities, insurance and marketing sit below prime on the P&L. Prime cost is deliberately restricted to the two lines you can actually change this week.
My prime cost is under 60% — is that good?
Usually, though check it isn't the result of understaffing or deferred quality. Consistently very low prime cost with flat sales sometimes means you're under-investing in the thing guests came for.