TenorOpsRestaurant & Kitchen Operations · Prime Cost KPI
Free Restaurant Prime Cost Calculator | COGS + Total Labor Benchmark
Calculate your restaurant's Prime Cost (Total COGS + Total Labor including payroll taxes and benefits) as a percentage of gross sales.
Sales, COGS & Labor
Prime Cost Inputs
Prime Cost Summary
Prime Cost % of Sales
Step-by-step guide
How to Use the Restaurant Prime Cost Calculator
- 1Enter total food & beverage sales
Input gross F&B sales for the week or month.
- 2Enter total COGS (Food, Beverage & Packaging)
Include all kitchen, bar, and paper/to-go packaging COGS.
- 3Enter total labor (Hourly, Salaried, Taxes & Benefits)
Review your Prime Cost $, Prime Cost %, and benchmark health.
Formula & methodology
Why Prime Cost Is the #1 Weekly Restaurant KPI
Prime Cost ($) = Total Cost of Goods Sold (COGS) + Total Labor (Wages + Taxes + Benefits) Prime Cost (%) = (Prime Cost ÷ Total Gross Sales) × 100
Unlike fixed rent or insurance, Prime Cost is controllable every single shift. Keeping Prime Cost at or below 55%–60% of sales leaves 40%–45% to cover occupancy, overhead, and a 10%–18% net profit margin.
Common questions
Frequently Asked Questions
Should salaried managers and payroll taxes be included in Prime Cost?
Yes. True Prime Cost includes all kitchen and FOH hourly wages, management salaries, employer FICA/FUTA/SUTA taxes, workers' compensation, and employee benefits.
What happens when Prime Cost exceeds 65%?
When Prime Cost passes 65%, even a busy dining room struggles to break even after rent (8%–10%), utilities, and operating supplies (12%–15%).
How often should Prime Cost be calculated?
Best-in-class operators calculate Prime Cost every week rather than waiting for monthly financial statements.
Keep optimizing
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See exact hourly and percentage labor burden beyond base wages with a component-by-component breakdown of taxes, insurance, and benefits.
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