#prime cost

Labor cost percentage is the second biggest lever in restaurant profitability after food cost. Learn how to calculate it, what benchmark to target, and the strategies that work.

Prime cost — the combination of food cost and labor cost — is the single most important financial metric in restaurant management. Here is how to calculate it, benchmark it, and bring it under control.

Understand the benchmarks for restaurant profit margins, why most restaurants fall short, and the proven levers to improve yours without sacrificing quality.