Calculate your restaurant's most important profitability metric
Value of inventory at start of period
Total purchases during the period
Value of inventory at end of period
Wages + payroll taxes + benefits
Total revenue for the same period
Prime cost is your two largest controllable expenses: Cost of Goods Sold (food and beverage) plus Total Labor Cost. These typically represent 55-65% of your sales.
Prime cost tells you if your fundamental business model works. If it's too high, you won't have enough money left to cover rent, utilities, and profit.
Focus on menu engineering, portion control, waste reduction, efficient scheduling, and vendor negotiations. Small improvements in either area compound quickly.
OwnerClone calculates your prime cost automatically from your POS data. No more manual calculations or spreadsheets.