Money & tax

What is Prime cost?

Prime cost is food cost plus labour cost, expressed as a percentage of revenue. It is the most watched number in restaurant operations, because together those two lines are where most of the money goes.

Both components are largely controllable, unlike rent. That is why operators track prime cost weekly rather than waiting for a monthly P&L.

Targets vary by service model, so the trend in your own figure matters more than any benchmark. A prime cost climbing while revenue is flat is the signal to act on.

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Knowing the term is one thing. Running it is another.

MinimalPOS handles orders, kitchen, billing and reporting in one flow.