Prime Costs Evaluation

Lowering Costs

Prime Costs Evaluation

Lowering Costs
If you’re serious about controlling your costs and maximizing your profitability, take the time to calculate and track your prime cost each week. Weekly prime cost reporting will go a long way toward helping you better manage these costs and result in a measurable and material boost to your bottom line.
Prime cost is one of the most telling numbers on any restaurant’s profit and-loss statement. Prime cost is arrived at by adding cost of sales and payroll costs. Prime cost reflects those costs that are generally the most volatile and deserve the most attention from a control standpoint. It’s very easy to lose money due to lax or nonexistent controls in the areas of food, beverage and payroll.
Many successful restaurants calculate and evaluate their prime cost at the end of each week. When looking at a restaurant’s overall cost structure, prime cost can be very meaningful, particularly in cost of sales and payroll cost. Some restaurants, such as steak and seafood restaurants, may carry very high food cost and yet be extremely profitable.

Prime Cost Weekly is MUCH Better Than Monthly

Prime Cost Weekly is MUCH Better Than Monthly

Customized in order to prove you with Accurate and Actionable Data that Gives You Insights You Can Use to Increase Revenue, Increase Profits, Decrease Expense and Never Miss your Target Food or Beverage Cost Again!

True Food Costs

A restaurant’s prime cost is the sum of all of its labor costs (salaried, hourly, benefits, etc.) and its COGS. Prime cost is an important metric because it represents the bulk of a restaurant’s controllable expenses.
While you can’t control fixed rent costs on a weekly or monthly basis, for instance, you can find ways to decrease prime costs by managing labor carefully. Thus, a restaurant’s prime costs represent the primary area a restaurant owner can optimize in order to decrease costs and increase profit.
Calculating prime cost weekly, 52 times a year, versus monthly gives restaurants a good way to correct any problems.
If you do not know your True Food Costs, then you do not have the data to make good decisions. The life or death of your restaurant depends on profits primarily derived from food revenue. The KEY to knowing your food revenue is knowing your PRIME COSTS! ERC can help you.

True Food Costs

A restaurant’s prime cost is the sum of all of its labor costs (salaried, hourly, benefits, etc.) and its COGS. Prime cost is an important metric because it represents the bulk of a restaurant’s controllable expenses.
While you can’t control fixed rent costs on a weekly or monthly basis, for instance, you can find ways to decrease prime costs by managing labor carefully. Thus, a restaurant’s prime costs represent the primary area a restaurant owner can optimize in order to decrease costs and increase profit.
Calculating prime cost weekly, 52 times a year, versus monthly gives restaurants a good way to correct any problems.
If you do not know your True Food Costs, then you do not have the data to make good decisions. The life or death of your restaurant depends on profits primarily derived from food revenue. The KEY to knowing your food revenue is knowing your PRIME COSTS! ERC can help you.

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    A good point of sale system will minimize bad communication between the kitchen and the front of the house, deter employee theft, keep employees from punching in early or late, identify which menu items are selling & who is selling them, allow for daily price changes, accumulate valuable tip reporting information, help establish employee incentive programs, be an important factor in menu engineering, and much more. A good point of sale system used to its fullest can add 1-2% to the bottom line.
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