Restaurant management guide
Prime cost is only useful when food and labour belong to the same operating period.
Prime cost combines the recorded cost of products sold with direct labour cost. It helps management see the largest controllable cost base together.
RestoVector should never label an incomplete estimate as a complete prime-cost result. Missing sales, recipe or labour coverage must stay visible.
Reviewed: 5 September 2026
Basic formula
Recorded food and beverage cost plus direct labour cost. Prime-cost ratio divides that total by corresponding net revenue and multiplies by 100.
Align the evidence
Use the same dates, locations and revenue scope. Include employer labour cost when available and separate tips or pass-through amounts according to local accounting treatment.
Use drivers, not only the total
Review supplier price, menu mix, recipe usage, waste, scheduled hours, actual attendance and sales per labour hour.
- ✓ Food-cost drivers
- ✓ Labour deployment
- ✓ Waste and discounts
- ✓ Revenue and cover context
Avoid false precision
A mathematically precise percentage can still be operationally wrong when records are incomplete. Show coverage and reconcile it before acting.
Related product
Connect labour and food cost to restaurant profitability
Review the operating-profit picture alongside the restaurant records and coverage behind it.
Next step
Review the workflow with your restaurant's data and roles.
A demonstration should show the real product, its limits and how it fits your operation.