Restaurant Prime Cost Spreadsheet
Do you know your restaurant numbers? Do you know what the numbers represent? Unfortunately, many restaurant owners and managers fall in between not knowing and barely knowing.
What do the numbers mean?
- Food and Labor Cost and Percentages
- Prime Cost and Percentages
In order to maintain a healthy bottom line, you need to control food and labor, why?
Food and Labor are the two largest chunks of the restaurant financial pie. Prime cost generally should be between 60- 65%. In most cases, chain operators are able to keep their prime cost 60% or less because they have the ability to purchase and produce in bulk and also to have shared advertising. However, it is very possible for most independent restaurants to achieve a prime cost of 60% to 65%. This means your restaurant will have a better profit and loss ratio and therefore have a better chance of success. Consistent and standard systems improve your ability to keep your prime costs in line.
Use the gross profit margin to determine the financial health of your company. Of course, the higher the gross profit margin percentage, the more funds to reinvest, save and pay expenses.
To calculate the gross profit margin you first need the revenue and cost of goods sold amounts. The revenue minus the cost of goods sold equals the gross profit margin. Then divide that amount by the revenue. Finally, multiply by 100 to come up with a final percentage.
This spreadsheet is a weekly prime cost spreadsheet. As an added feature, there is a month to date M.T.D at a Glance Sheet. This particular spreadsheet is fully protected and contains formulas. The numbers on this sheet populate from other various pages.
For best results, consistently and correctly use the restaurant prime cost spreadsheet.
In conclusion, knowing and reacting to your numbers dramatically increases your bottom line as long as you consistently monitor food and labor percentages.