Worked Example: Restaurant Prime & Food Cost Worked Example
Compute restaurant Prime Cost %, Food Cost %, Labor %, and ideal menu item price.
- Enter your operational, financial, or physical measurement inputs.
- Apply the standard domain equation: PrimeCost% = (FoodBevCOGS + TotalLaborWithPayrollTax) / TotalSales × 100; IdealMenuPrice = PlateRecipeCost / (TargetFoodCost% / 100).
- Review the primary result, sensitivity metrics, and 3 interactive SVG graphs.
Result: Calculates Restaurant Prime & Food Cost via PrimeCost% = (FoodBevCOGS + TotalLaborWithPayrollTax) / TotalSales × 100; IdealMenuPrice = PlateRecipeCost / (TargetFoodCost% / 100).
Business & Marketing · Hospitality & Food Service
Restaurant Prime Cost (CoGS + Labor %) & Menu Item Target Food Cost Pricing Calculator: inputs, method, and how to read the result
Compute restaurant Prime Cost %, Food Cost %, Labor %, and ideal menu item price.
Choose inputs for the case you are checking
The defaults are illustrative. Replace them with values for your case and keep the units shown beside each field.
- Display Currency: Amounts are treated in the selected currency; no foreign-exchange conversion is applied.
- Monthly Restaurant Sales: Total monthly food and beverage sales.
- Monthly Food Bev Cogs: Monthly food and beverage Cost of Goods Sold (Beginning + Purchases − Ending).
- Monthly Total Labor Cost: Monthly BOH/FOH wages, salaries, payroll taxes & benefits.
What the calculation includes
With the default values shown, Restaurant Prime Cost (% of Sales) is 59 %. The calculation follows Restaurant Prime & Food Cost Formula; the formula and variable definitions above show how the inputs combine.
One-input check: With the other defaults held constant, changing Monthly Restaurant Sales from 125,000 $ to 137,500 $ changes Restaurant Prime Cost (% of Sales) from 59 % to 53.64 %. This is a comparison inside the calculator's stated model, not a prediction.
Where to use caution
- Uses industry-standard APICS/ASCM supply chain, lean manufacturing, and consumer physics formulas.
- Actual commercial freight tariffs, marketplace commissions, and utility rates vary by carrier and contract.
Scope: Global Supply Chain, Business & Consumer Standard Check the assumptions and limitations against your situation before relying on the estimate.
More in Business & Marketing: ROI Calculator (Return on Investment), Percentage Calculator.