Act on the result
Reconcile sales, COGS and labour to the same period before acting on the gap.
Educational only: Business decision support, not accounting, tax or legal advice.
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Update policy: Reviewed when formulas or official dependencies change.
Scope: Market-neutral small-business planning using your own assumptions.
What this planner helps you decide
Best for
Restaurant operators reconciling food, beverage and loaded labour cost against sales.
Outputs
Prime cost, prime-cost rate, target cost and the signed gap from target.
Start here
Use sales and direct operating costs from the same period and tax basis.
Use a different tool when: Do not use this to choose menu items and pricing from item-level contribution, popularity and operational burden; use Restaurant Menu Profitability Planner for that decision. Use this tool to reconcile food, beverage and labour cost against restaurant sales.
Profit & break-even
Restaurant Prime Cost: prime cost
Prime cost, prime-cost rate, target cost and the signed gap from target.
Amounts use the same currency as your inputs. No currency conversion is performed.
Your industry scenario
Connect food and beverage cost with kitchen and front-of-house labour, sales and a restaurant-specific prime-cost target.
Your numbers stay in this browser
Use food, beverage and other restaurant sales for the review period. Keep every amount on the same ex-tax currency basis.
Ingredients actually consumed for food sales in the period. Keep every amount on the same ex-tax currency basis.
Beverage stock consumed for sales in the same period. Keep every amount on the same ex-tax currency basis.
Kitchen and front-of-house wages for the period. Keep every amount on the same ex-tax currency basis.
Employer costs added to restaurant wages for the same period. Keep every amount on the same ex-tax currency basis.
Occupancy and other operating costs used to show remaining headroom. Keep every amount on the same ex-tax currency basis.
Your restaurant decision target, not an industry benchmark.
Industry decision result
See how much operating headroom remains after the two cost pools a restaurant controls most directly. Review every output on the same entered business basis.
- Food and beverage cost
- 36,000.00
- Restaurant labour cost
- 43,000.00
- Restaurant prime cost
- 79,000.00
- Restaurant prime-cost rate
- 63.2%
- Prime cost at target
- 77,500.00
- Gap above or below target
- 1,500.00
- Operating headroom after entered other costs
- 18,000.00
- Operating headroom rate
- 14.4%
Scenario comparison
Each row names the assumption axis changed from the baseline.
ScenarioResultDifference
Current industry scenario1,500.00Baseline
Lower Target prime-cost rate9,250.007,750.00
Higher Target prime-cost rate-6,250.00-7,750.00
Save these results, change an input, then compare the updated figures with this baseline.
The baseline is temporary in this tab and is not added to shared scenario links or generated reports.
Calculation details
View calculation detailsView the formulas and inputs used for these results.
Food and beverage cost
Food and beverage cost
food cost + beverage cost36,000 , ex taxResult36,000.00
Uses the named industry records and reports this output, ex tax. The shared engine retains full precision; display rounding never feeds the calculation.
Restaurant Prime Cost Planner formulas →Inputs used by these formula steps
- Food and beverage costNet Restaurant Sales Ex Tax
- 125,000
- Food and beverage costFood Cost Of Sales Ex Tax
- 27,000
- Food and beverage costBeverage Cost Of Sales Ex Tax
- 9,000
- Food and beverage costRestaurant Wages Ex Tax
- 39,000
- Food and beverage costPayroll On Costs Ex Tax
- 4,000
- Food and beverage costOther Operating Costs Ex Tax
- 28,000
- Food and beverage costTarget Prime Cost Rate
- 0.62
Restaurant labour cost
Restaurant labour cost
wages + payroll on-costs43,000 , ex taxResult43,000.00
Uses the named industry records and reports this output, ex tax. The shared engine retains full precision; display rounding never feeds the calculation.
Restaurant Prime Cost Planner formulas →Inputs used by these formula steps
- Restaurant labour costNet Restaurant Sales Ex Tax
- 125,000
- Restaurant labour costFood Cost Of Sales Ex Tax
- 27,000
- Restaurant labour costBeverage Cost Of Sales Ex Tax
- 9,000
- Restaurant labour costRestaurant Wages Ex Tax
- 39,000
- Restaurant labour costPayroll On Costs Ex Tax
- 4,000
- Restaurant labour costOther Operating Costs Ex Tax
- 28,000
- Restaurant labour costTarget Prime Cost Rate
- 0.62
Restaurant prime cost
Restaurant prime cost
food and beverage cost + labour cost79,000 , ex taxResult79,000.00
Uses the named industry records and reports this output, ex tax. The shared engine retains full precision; display rounding never feeds the calculation.
Restaurant Prime Cost Planner formulas →Inputs used by these formula steps
- Restaurant prime costNet Restaurant Sales Ex Tax
- 125,000
- Restaurant prime costFood Cost Of Sales Ex Tax
- 27,000
- Restaurant prime costBeverage Cost Of Sales Ex Tax
- 9,000
- Restaurant prime costRestaurant Wages Ex Tax
- 39,000
- Restaurant prime costPayroll On Costs Ex Tax
- 4,000
- Restaurant prime costOther Operating Costs Ex Tax
- 28,000
- Restaurant prime costTarget Prime Cost Rate
- 0.62
Restaurant prime-cost rate
Restaurant prime-cost rate
restaurant prime cost / net restaurant sales0.63 decimal rateResult63.2%
Uses the named industry records and reports this output in decimal rate. The shared engine retains full precision; display rounding never feeds the calculation.
Restaurant Prime Cost Planner formulas →Inputs used by these formula steps
- Restaurant prime-cost rateNet Restaurant Sales Ex Tax
- 125,000
- Restaurant prime-cost rateFood Cost Of Sales Ex Tax
- 27,000
- Restaurant prime-cost rateBeverage Cost Of Sales Ex Tax
- 9,000
- Restaurant prime-cost rateRestaurant Wages Ex Tax
- 39,000
- Restaurant prime-cost ratePayroll On Costs Ex Tax
- 4,000
- Restaurant prime-cost rateOther Operating Costs Ex Tax
- 28,000
- Restaurant prime-cost rateTarget Prime Cost Rate
- 0.62
Prime cost at target
Prime cost at target
net restaurant sales * target prime-cost rate77,500 , ex taxResult77,500.00
Uses the named industry records and reports this output, ex tax. The shared engine retains full precision; display rounding never feeds the calculation.
Restaurant Prime Cost Planner formulas →Inputs used by these formula steps
- Prime cost at targetNet Restaurant Sales Ex Tax
- 125,000
- Prime cost at targetFood Cost Of Sales Ex Tax
- 27,000
- Prime cost at targetBeverage Cost Of Sales Ex Tax
- 9,000
- Prime cost at targetRestaurant Wages Ex Tax
- 39,000
- Prime cost at targetPayroll On Costs Ex Tax
- 4,000
- Prime cost at targetOther Operating Costs Ex Tax
- 28,000
- Prime cost at targetTarget Prime Cost Rate
- 0.62
Gap above or below target
Gap above or below target
actual prime cost - prime cost at target1,500 , ex taxResult1,500.00
Uses the named industry records and reports this output, ex tax. The shared engine retains full precision; display rounding never feeds the calculation.
Restaurant Prime Cost Planner formulas →Inputs used by these formula steps
- Gap above or below targetNet Restaurant Sales Ex Tax
- 125,000
- Gap above or below targetFood Cost Of Sales Ex Tax
- 27,000
- Gap above or below targetBeverage Cost Of Sales Ex Tax
- 9,000
- Gap above or below targetRestaurant Wages Ex Tax
- 39,000
- Gap above or below targetPayroll On Costs Ex Tax
- 4,000
- Gap above or below targetOther Operating Costs Ex Tax
- 28,000
- Gap above or below targetTarget Prime Cost Rate
- 0.62
Operating headroom after entered other costs
Operating headroom after entered other costs
net restaurant sales - prime cost - other operating costs18,000 , ex taxResult18,000.00
Uses the named industry records and reports this output, ex tax. The shared engine retains full precision; display rounding never feeds the calculation.
Restaurant Prime Cost Planner formulas →Inputs used by these formula steps
- Operating headroom after entered other costsNet Restaurant Sales Ex Tax
- 125,000
- Operating headroom after entered other costsFood Cost Of Sales Ex Tax
- 27,000
- Operating headroom after entered other costsBeverage Cost Of Sales Ex Tax
- 9,000
- Operating headroom after entered other costsRestaurant Wages Ex Tax
- 39,000
- Operating headroom after entered other costsPayroll On Costs Ex Tax
- 4,000
- Operating headroom after entered other costsOther Operating Costs Ex Tax
- 28,000
- Operating headroom after entered other costsTarget Prime Cost Rate
- 0.62
Operating headroom rate
Operating headroom rate
operating headroom / net restaurant sales0.14 decimal rateResult14.4%
Uses the named industry records and reports this output in decimal rate. The shared engine retains full precision; display rounding never feeds the calculation.
Restaurant Prime Cost Planner formulas →Inputs used by these formula steps
- Operating headroom rateNet Restaurant Sales Ex Tax
- 125,000
- Operating headroom rateFood Cost Of Sales Ex Tax
- 27,000
- Operating headroom rateBeverage Cost Of Sales Ex Tax
- 9,000
- Operating headroom rateRestaurant Wages Ex Tax
- 39,000
- Operating headroom ratePayroll On Costs Ex Tax
- 4,000
- Operating headroom rateOther Operating Costs Ex Tax
- 28,000
- Operating headroom rateTarget Prime Cost Rate
- 0.62
Inputs used
- Net restaurant sales (/review period, ex tax)
- 125,000
- Food cost of sales (/review period, ex tax)
- 27,000
- Beverage cost of sales (/review period, ex tax)
- 9,000
- Restaurant wages (/review period, ex tax)
- 39,000
- Payroll on-costs (/review period, ex tax)
- 4,000
- Other restaurant operating costs (/review period, ex tax)
- 28,000
- Target prime-cost rate (decimal fraction of net restaurant sales)
- 0.62
Open this calculator with preset values
This calculator supports documented, shareable scenario URLs. Compatible assistants and applications can construct links using the parameters below.
Scenario links contain only allowlisted numeric and closed-choice inputs shown in the URL; Margin101 excludes free text and identifying fields. Anyone you share the URL with can read those numbers, so do not include private or identifying data.
| Parameter | Meaning | Unit | Allowed values | Presence | Default |
|---|---|---|---|---|---|
| beverageCostOfSalesExTax | Beverage stock consumed for sales in the same period. Keep every amount on the same ex-tax currency basis. | currency units/review period, ex tax | 0 to 10000000 | Required | 9000 |
| foodCostOfSalesExTax | Ingredients actually consumed for food sales in the period. Keep every amount on the same ex-tax currency basis. | currency units/review period, ex tax | 0 to 10000000 | Required | 27000 |
| netRestaurantSalesExTax | Use food, beverage and other restaurant sales for the review period. Keep every amount on the same ex-tax currency basis. | currency units/review period, ex tax | 0 to 10000000 | Required | 125000 |
| otherOperatingCostsExTax | Occupancy and other operating costs used to show remaining headroom. Keep every amount on the same ex-tax currency basis. | currency units/review period, ex tax | 0 to 10000000 | Required | 28000 |
| payrollOnCostsExTax | Employer costs added to restaurant wages for the same period. Keep every amount on the same ex-tax currency basis. | currency units/review period, ex tax | 0 to 10000000 | Required | 4000 |
| restaurantWagesExTax | Kitchen and front-of-house wages for the period. Keep every amount on the same ex-tax currency basis. | currency units/review period, ex tax | 0 to 10000000 | Required | 39000 |
| targetPrimeCostRate | Your restaurant decision target, not an industry benchmark. | decimal fraction of net restaurant sales | 0 to 1 | Required | 0.62 |
Restaurant Prime Cost: prime cost
The prime-cost gap compares your entered direct-cost definition with your own target.
Formula summary
- Primary formula
- actual prime cost - prime cost at target
Data used here
- The estimate uses your inputs and the general business formula documented in the methodology.
Decision checks
Stress-test the decision
Retest higher food cost and labour hours separately.
When this estimate can be misleading
- Industry costs, tax, contract terms, capacity and targets are entered by the user; no market benchmark is embedded.
- Use records from one consistent period and one ex-tax currency basis where money applies.
- This is educational business decision support, not accounting, tax, legal or financial advice.
- The prime-cost gap compares your entered direct-cost definition with your own target.
Educational estimate, not advice. See all assumptions & limitations →
Related reading
Guides to interpret the decision and its assumptions.
- Restaurant Economics: From Menu Price to Operating Profit
Trace menu price through contribution, operating capacity and period costs without confusing a dish margin with operating profit.
Read guide
Frequently asked questions
How do I reconcile food, beverage and labour cost against restaurant sales?
Reconcile sales, COGS and labour to the same period before acting on the gap.
Which planning assumptions should I stress-test?
Compare a plausible alternative scenario and verify the decision-critical assumption that changes the plan most.