Type in four numbers and see the percent that decides whether your month makes money.
After 20 years running food and beverage operations, we can tell you the number that separates a profitable month from a bad one is prime cost: your food, beverage and labor cost added together, as a percent of sales. Most managers only see it when the P&L shows up, weeks after the money is already gone.
The Prime Cost Check puts that number in front of you every week. Enter your email below and you get it right away: an Excel sheet that works out your prime cost percent from last week's numbers, plus a one page guide.
Pull last week's total sales, food cost, beverage cost and labor cost from your POS, invoices and payroll. For labor, include payroll taxes and benefits, not just wages.
Type the four numbers into the sheet. It shows your prime cost percent right away.
Do it again every Monday. A number you check weekly is a number you can still fix before the month closes.
One Excel tab, three steps, about ten minutes. It opens in Excel or Google Sheets, and every calculation is already built in. You only type in the yellow cells.
This is the example loaded in the sheet when you open it: a full service restaurant with $42,000 in net sales for the week and a 62 percent target.
| Line | Dollars | % of sales |
|---|---|---|
| Net sales | $42,000 | 100.0% |
| Food cost | $11,800 | 28.1% |
| Beverage cost | $3,900 | 9.3% |
| Labor cost (wages, salaries, payroll tax, benefits) | $10,500 | 25.0% |
| Prime cost | $26,200 | 62.4% |
At 62.4 percent this week is 0.4 points over the 62 percent target, which is $160. The sheet calls that Watch it: not a problem yet, but worth knowing which line moved before next Monday. Run the same week at 66 percent and the gap is $1,680, or more than $87,000 over a year if it holds.
General managers, kitchen managers, bar managers and owners who want one honest number every Monday without buying software. If you already run a full P&L every week, it is a quick cross check. If you only see the P&L once a month, it is the earliest warning you will get.
Free download. Enter your email in the form above and the sheet arrives in your inbox, with the one page guide.
Get the free sheet Read the full prime cost guideWhat is prime cost?
Prime cost is your cost of goods sold (food and beverage) plus your total labor cost, including payroll taxes and benefits. Divide it by total sales and multiply by 100 to get your prime cost percent.
What is a good prime cost percentage?
Most full service restaurants aim for roughly 60 to 65 percent of sales. Under 60 is strong. Over 65 usually means one of the three costs is running away from you, and the sooner you see it the cheaper it is to fix.
How often should I check it?
Weekly. The monthly P&L arrives too late to change the month you are in. A weekly check gives you time to adjust ordering and the schedule while it still matters.
Is it really free?
Yes. Enter your email and the sheet arrives in your inbox. You will also get a few short emails on what to do with the number, and you can unsubscribe any time.
Does it work in Google Sheets?
Yes. It is a standard Excel file with simple formulas, so it opens in Excel, Google Sheets or Numbers. Upload it to Google Drive and open it with Google Sheets to use it on a phone or tablet.
What should I include in labor cost?
Hourly wages, the weekly share of salaried managers, employer payroll taxes, workers' comp and benefits. Wages alone usually understate labor by 15 to 25 percent, which makes prime cost look better than it is.
What is the difference between this and the prime cost calculator?
The calculator on our site gives you a quick answer in the browser. The Prime Cost Check is a sheet you keep, so you can save each week, compare it to your target and work the five point checklist when the number is high.
If your prime cost came in high, the Finance and Cost Control Bundle tracks food cost, variance, break even, cash flow and labor week by week. If you would rather have a second set of eyes on your numbers, we work with operators directly.
