Prime Cost Seminar – Togather Restaurant Consulting & Curtis Restaurant Equipment
Join Togather Restaurant Consulting in partnership with Curtis Restaurant Equipment for the first seminar in a series of seminars for restaurant owners and operators. Check out their Facebook Event link HERE for more information and to reserve a spot.
When: Monday, September 30th at 3:00pm
Location: Curtis Restaurant Equipment Showroom – 555 Shelley St., Springfield, OR 97477
Presented By: Seth Gruschow, Lead Consultant/Owner, Togather Consulting
PRIME COST
What is Prime Cost?
- Prime cost is composed of the two biggest and most volatile cost areas in any restaurant, food & beverage and labor cost.
What are the Benefits of the Weekly Prime Cost Reporting System?
- Proven system for controlling your most volatile cost areas – food, beverage, labor
- Helps to establish a culture of cost-consciousness throughout your organization
- Excellent method measuring your management’s effectiveness
- Provides the basis for comparing actual cost to the weekly budget
- Helps identify sudden spikes in food and labor cost that need immediate attention
- Enables management to react quickly rather than waiting for month-end P&L
How to Calculate Prime Cost
Total Cost of Goods (Food Cost + Beverage Cost)
+
Total Labor (Salaries & Wages + Payroll taxes & Benefits)
=
Prime Cost
Prime cost is one of the best indicators of restaurant profitability and how well the business is managed on a day-in, day-out basis.
Looking at cost of sales and payroll costs together as prime cost gives a much more meaningful and valid indication of a restaurant’s cost structure and potential for profit.
Join us for an in-depth discussion about Prime Cost. We will walk you thru the above topics and present an example of how to calculate prime cost and how to use it to benefit your business bottom line.
