Restaurant Prime Cost Calculator

How the restaurant prime cost calculator works

Food and beverage usage cost = beginning inventory + purchases − ending inventory. All amounts are at cost for the same period. This reduced model rejects ending inventory above available beginning stock plus purchases rather than reporting negative usage.

Prime cost adds the entered period labor amount to usage cost. Food, labor and prime-cost percentages divide those costs by the entered period net sales. Zero sales makes the percentages undefined while currency costs remain visible.

Incorporate credits, transfers, stock adjustments and payroll components consistently before entry. The calculator does not implement inventory valuation, payroll tax or accounting rules and excludes other operating costs. It imposes no universal prime-cost target for restaurants with different concepts or labor models.

Worked example

Beginning inventory of 10,000 plus 30,000 purchases less 8,000 ending inventory gives 32,000 usage cost. Adding 25,000 labor gives 57,000 prime cost. Against 100,000 sales, usage is 32%, labor 25% and prime cost 57%. At 30,000 labor, prime cost becomes 62,000 or 62%.

Sources and assumptions

The source material explains the underlying calculation or pricing structure. Entered prices, costs, schedules and scenario choices are your assumptions; this tool does not obtain supplier quotes or predict actual results.

• Toast: Restaurant food-cost control