Restaurant Prime Cost Calculator
Calculate your restaurant prime cost percentage from COGS and labor expenses, and compare against 2026 industry benchmarks of 55-65% of sales.
Total revenue for the period (weekly or monthly)
Cost of Goods Sold (COGS)
Labor Costs
Enter your sales and cost figures, then click calculate.
What This Calculator Does
This restaurant prime cost calculator computes your prime cost percentage by combining cost of goods sold (COGS) and total labor costs, then comparing the result against 2026 industry benchmarks. Prime cost is the single most important profitability metric for restaurants because it represents the two largest controllable expenses.
The Formula
COGS includes all food and beverage costs. Total labor includes salaried employees, hourly wages, benefits, and payroll taxes. The prime cost percentage tells you what share of every revenue dollar goes to these two categories. The remainder covers rent, utilities, marketing, equipment, and profit.
Step-by-Step Example
Enter total sales
Weekly total sales: $50,000.
Calculate COGS
Food cost: $12,000. Beverage cost: $3,000. Total COGS: $15,000 (30% of sales).
Calculate total labor
Salaried: $8,000. Hourly: $7,000. Benefits: $1,500. Payroll tax: $1,200. Total labor: $17,700 (35.4%).
Review prime cost
Prime cost: $32,700 (65.4%). This is above the 60% target. Remaining for overhead and profit: $17,300 (34.6%).
Real-World Use Cases
Weekly P&L Monitoring
Track prime cost weekly to catch cost overruns before they erode monthly profits. A 1% increase on $50,000 weekly sales is $500 per week or $26,000 per year.
Labor Scheduling
If labor is running above 30%, use the calculator to set a dollar target for weekly labor spending.
Concept Comparison
Compare prime cost across multiple restaurant locations or concepts to identify which operations are most efficient.
Common Mistakes to Avoid
Not including all labor costs. Benefits, payroll taxes, workers comp insurance, and training costs are part of total labor.
Calculating prime cost monthly instead of weekly. Weekly tracking catches problems 3 to 4 times faster.
Comparing your prime cost to the wrong benchmark. Full-service restaurants target 55-65%. QSR targets 50-55%. Fine dining may run higher due to elevated labor costs.
Ignoring the COGS and labor split. A 60% prime cost with 35% COGS and 25% labor signals different problems than 25% COGS and 35% labor.
Frequently Asked Questions
Accuracy and Disclaimer
Prime cost benchmarks vary by restaurant type, location, and concept. This calculator provides general industry guidelines for 2026. Consult a restaurant accountant for benchmarks specific to your operation.
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