Culinary

How to Calculate Restaurant Prime Costs [Formula]

What are Restaurant Prime Costs? In the most simple terms, prime costs are the combined costs of a restaurant’s products and its people. In other words, it is the sum of the total cost-of-goods-sold (COGS), which would include pour costs (for non-alcoholic beverages, beer, liquor, and wine) and restaurant food costs, and the total labor costs, which would include salaries and wages, taxes, benefits and insurance.

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