Restaurant Prime Cost & Profitability Calculator for 2026
Calculate your restaurant's prime cost, food cost %, and labor cost % and benchmark them against full-service and quick-service industry targets.
How Restaurant Prime Cost Is Calculated
Prime cost combines your cost of goods sold (food and beverage) with total labor cost, then expresses that total as a percentage of sales — the single biggest lever restaurant operators control over profitability.
Most full-service restaurants target a prime cost of 60-65% of total sales, while quick-service concepts run leaner at 55-60%. Industry sources generally consider prime cost above roughly 70% of sales a profitability danger zone, since too little margin remains to cover rent, utilities, marketing, and other overhead.
How to Use the Restaurant Prime Cost Calculator
Enter monthly food and beverage sales
Split total revenue by food vs. beverage/alcohol category, since each typically carries a different cost percentage.
Enter food and beverage cost percentages
Use your cost of goods sold (COGS) as a percentage of sales for each category, pulled from your POS cost reports or P&L.
Enter labor costs
Include total hourly wage payroll, salaried management pay, and a payroll tax/benefits loading percentage to capture the full labor burden.
Review your prime cost %
Compare your result against industry benchmark bands to see whether you're healthy, at risk, or in the danger zone, and see the food cost vs. labor cost split.
Real-World Scenario Example
"A full-service restaurant with $80,000 monthly food sales and $20,000 beverage sales, 30% food cost, 22% beverage cost, $22,000 in hourly wages, $8,000 in management salaries, and a 12% payroll tax/benefits loading."
Inputs
Result
Prime cost of $62,000, or 62% of sales — within the healthy 60-65% full-service benchmark range, with food/beverage cost at 28.4% and labor cost at 33.6% of total sales.
Important Disclaimer
These calculations are estimates for planning purposes only and do not replace a full P&L review or accounting analysis. Actual prime cost benchmarks vary by restaurant concept, region, and service model — consult a restaurant accountant or operations consultant for guidance specific to your business.
Related Calculators
Retail & Restaurant Break-Even Calculator
Calculate the break-even point for your retail store or restaurant in units sold, daily revenue, and months to profitability. Enter fixed costs, variable costs, and average price.
Business Break-Even Calculator
Calculate your break-even point in units and revenue. Find out exactly how many sales cover your fixed and variable costs.
Business Startup Cost Estimator
Estimate total startup costs by industry with state LLC filing fees included. Get an itemized breakdown of entity formation, equipment, marketing, and working capital needs.