How to track prime cost every week
- Set your targets on the Targets tab. Many QSRs aim for prime cost around 60% or lower.
- Each Monday, enter last week's numbers: net sales, opening and closing inventory value, purchases, and labour.
- Read across the row. Food cost %, labour % and prime cost % calculate themselves, and the last column shows how far you are from target.
- Look at the trend, not one week. Two weeks in a row over target is the signal to dig in.
New to prime cost? Read how to calculate prime cost, then use the inventory count sheet to get your inventory values.
Frequently asked questions
What is prime cost?
Cost of goods sold plus total labour cost. It's usually the biggest set of costs in a quick service restaurant, and the part you can change week to week.
Where do I get the inventory values?
From a weekly count: count × unit cost for every item. Last week's closing value becomes this week's opening value, and the tracker fills that in for you.
What counts as payroll costs?
In Canada, the employer's share of CPP and EI, vacation pay, benefits and workers' compensation. In the US, payroll taxes and benefits.
