Prime cost
Example: A 65% prime-cost ratio (food + labor combined) is the watershed — above 65% almost no independent restaurant survives a 12-month dip in covers.
food cost + labor cost, as a % of sales
Your food cost plus your labor cost, expressed as a percentage of sales. Healthy independents land between 55–65%; above 70% is operationally unsustainable without a hard change.
Why it matters
Prime cost is the single best one-number pulse of a restaurant's operating health. Everything else (rent, insurance, SaaS, loan payments) is more or less fixed — prime is the biggest lever you can actually move week to week. The Prime Cost Check in Margin Math plots your two inputs against the healthy band.
Frequently asked
What is prime cost?
Prime cost is your food cost plus your labor cost, expressed as a percentage of sales. Healthy independents land between 55–65%; above 70% is operationally unsustainable without a hard change.
Why does prime cost matter for a restaurant?
Prime cost is the single best one-number pulse of a restaurant's operating health. Everything else (rent, insurance, SaaS, loan payments) is more or less fixed — prime is the biggest lever you can actually move week to week. The Prime Cost Check in Margin Math plots your two inputs against the healthy band.
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