Prime Cost Calculator
Prime cost = food cost + labor cost. The classic rule is that prime cost should stay under 60% of net sales. Above 65% and the restaurant cannot service rent + utilities + EMIs without dipping into reserves.
Use this free tool to compute prime cost from your last month's P&L.
Why prime cost matters
Both food and labor are partly controllable on a daily/weekly basis. Rent is not. So prime cost is the lever an operator can actually move. Tracking it weekly catches drift before it shows up in the monthly P&L.
The 60% rule, qualified
For QSR and cloud kitchens that pay aggregator commissions, the achievable prime cost is more like 55%. For casual dining with dine-in pricing power, 60% is fine. For franchise units paying royalty + marketing fees on top, target sub-58%.
Frequently Asked Questions
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