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PrimeCostHQ

Prime Cost — what your number means

Compute prime cost %, see which of food / beverage / labor is closest to its band, and walk through the most likely causes when prime cost is off-band.

Last reviewed: Last reviewed 2026-05-04

Calculator

Your context (used for regional benchmark)

Remembered on this device for next visit. Defaults are sensible if you don't change them.

Wages + payroll taxes + benefits + PTO.

Methodology & sources

Formula: (food + beverage + labor) ÷ revenue.

Worked example: ($30,000 + $5,000 + $25,000) ÷ $100,000 = 60.0% prime cost.

Universal bands:

  • ≤ 60% — target
  • 60–70% — watch
  • > 70% — critical

Regional segment band on the result is composed from NRA segment guidance × BEA Regional Price Parities. See methodology — regional bands.

Source: National Restaurant Association. See full methodology.

Not sure which number to focus on? Try the integrated review — one form, all four metrics.

Sub-component decomposition

Prime cost is three things added together. The lever isn't all three at once — it's whichever sub-component is closest to (or above) the high end of its segment band.

Component Yours Segment band Status
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First lever: —

What this likely means

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    First step: —

    Diagnostic content is judgment based on common operator experience. Always verify against your books before acting. Methodology.