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RANGE

Free tool

A prime cost calculator for multi-unit groups. It puts every unit side by side and shows the spread the average hides. No signup, no email.

Prime cost calculator

Service model
Figures cover

Example numbers: a group that looks healthy on paper. , or paste your P&L by location into the first field.

Food 29.0% · Labor 32.0% Prime 61.0% · In range
Food 30.0% · Labor 34.0% Prime 64.0% · In range
Food 36.0% · Labor 40.0% Prime 76.0% · Over
Blended 65.0% Spread 15.0 1 over

The example, across three units

61.0%–76.0%

The range across the example’s units: a spread of 15.0 points.

65.0%

Blended prime cost, the number most operators quote. Food 30.7%, labor 34.3%.

$4,510

Each week: what Unit 3 spends beyond 65%. Not a forecast.

Unit 3 is at 76.0%, 11.0 points over the band. The blend of 65.0% sits inside it.

That is a conversation with Unit 3’s manager this week, and an investigation if next week reads the same: recipe costing first, then the schedule, then the invoices.

Measured against the band we hold full-service groups to: 60 to 65% of sales.

A number is not a diagnosis.

Behind the number sits a schedule, a vendor, the recipe discipline or a manager who left four months ago, and usually more than one of them. The call works out which to fix first.

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Prime cost is decided this week.

Prime cost moves with a schedule and an order guide, and both are set one unit at a time.

The tool adds each unit’s food and beverage cost to its fully loaded labor, divides by its sales and reads every unit against the band for your service model. Fully loaded means wages, salaries, payroll taxes, benefits and workers’ compensation.

The full math, worked line by line, sits in our piece on prime cost at scale, including what happens when an owner works fifty unpaid hours a week and the labor line understates itself by three points.

Why one number across five units is the wrong number.

One restaurant has one prime cost. With five, you already know your blended number, and it is sales-weighted, so your busiest units carry the most weight in it. The average describes a restaurant that does not exist.

That is why this tool leads with the spread. Fifteen points between your best and worst unit is an execution gap, and it sits in one restaurant. The spread tells you which restaurant to start with.

One caution on inputs: use the same period boundaries for sales, food and labor. A month of sales against four weeks of payroll will understate labor by about eight percent of itself: a true 32% reads as roughly 29.5%, in the flattering direction.

If food is the half running hot (full-service food cost typically sits between 28 and 35% of sales), the Food-Cost Install fixes it on a fixed scope: recipe costing, par, ordering and the variance tracking that holds the gain.

If it is labor, where full-service groups aim for 30 to 35% and limited-service (quick-service) groups run closer to 25 to 30%, the answer is usually the schedule rather than the wage, which our piece on cutting labor cost without cutting service works through.

Common questions

What is a good prime cost for a restaurant?

For a full-service restaurant, 60 to 65% of sales; limited-service models, with leaner labor, run closer to 55 to 60%. Read it weekly. A unit that holds 64% every week is in better shape than one that swings between 58% and 70%.

If my blended prime cost is on target, why check each unit?

A unit doing a fifth of the group’s sales can run eleven points over the band and move the blend by about two. Read each unit against the band every week and the one the blend is carrying shows up the first week it slips.

Is a 70% prime cost bad?

For a full-service restaurant, yes. It means five points of margin have gone somewhere before rent, utilities and everything else. On a unit doing $1.5 million a year, that is $75,000. For a limited-service model it is ten points over the band: $150,000 on the same unit.

You found the unit. Now find the reason.

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