The Most Important Number in Restaurant Operations
Prime Cost combines Food Cost and Labor Cost into a single number that decides whether a restaurant makes money or loses it. KYN helps operators monitor, benchmark, and improve Prime Cost across every location.
- Designed to pull from your POS, scheduling, and accounting — no manual spreadsheets.
Prime Cost — This Week
On Target
Prime Cost (Food + Labor)
62.5%
35+ Years
Real Operator Experience
170+ Stores
Managed & Monitored
Daily
Prime Cost Visibility
What Is Prime Cost?
Prime Cost is a restaurant’s two biggest controllable expenses added together: Cost of Goods Sold (Food Cost) plus total Labor Cost. It’s the single clearest measure of whether a restaurant is run profitably.
Food Cost
Cost of Goods Sold
Labor Cost
Wages + Payroll
Prime Cost
Your Profit Compass
Use KYN as a Prime Cost calculator and dashboard — automatically combining Food Cost and Labor Cost against sales, targets, and location benchmarks.
What’s a Healthy Prime Cost?
As a percentage of sales, most full-service and quick-service restaurants aim for:
55–65%
Healthy
The target range for a well-run restaurant.
70%+
Warning
Margins are tightening — time to act.
75%+
Serious Risk
Profitability is in real danger.
Targets may vary for QSR, pizza restaurants, full-service restaurants, bars, and fast-casual concepts.
Why Prime Cost Matters
A few points of Prime Cost is the difference between a profitable month and a loss. These are the pressures that push it the wrong way.
Food Cost Rising
Ingredient prices climb while menu prices stay the same, and margin quietly erodes plate by plate.
Labor Cost Rising
Wages and hours grow faster than sales, pushing the labor side of Prime Cost past target.
Menu Prices Not Adjusted
Costs move every week; menu prices don't. The gap shows up directly in Prime Cost.
Overtime Growth
Unplanned overtime adds labor cost that never appears until payroll runs.
Margin Compression
Strong sales hide the problem — until you realize each sale earns less than it used to.
Cash Flow Problems
When Prime Cost drifts up, profit and cash fall together — often before anyone notices.
The Prime Cost Dashboard
Food Cost, Labor Cost, and Prime Cost — against target, with trend and rankings — on one screen.
Prime Cost Dashboard
All Locations · This Week
Food Cost %
30.5%
Slightly over 30% target
Labor Cost %
32.0%
Over 30.0% target
Prime Cost %
62.5%
Within 55–65% range
Target Prime Cost
60.0%
Within 55–60% range
Variance
+2.5 pts
Above target
Best Store
Store #4
58.0% prime cost
Weekly Trend
+1.2 pts
Trending up
Monthly Trend
−0.8 pts
Improving
See Every Store’s Prime Cost at a Glance
Food Cost and Labor Cost broken out per location, with Prime Cost color-coded against the healthy range.
| Store | Food Cost | Labor Cost | Prime Cost |
|---|---|---|---|
|
Store A |
28% |
30% |
58% — healthy |
|
Store B |
31% |
35% |
66% — watch |
|
Store C |
33% |
38% |
71% — at risk |
Illustrative example. Figures are for demonstration only.
Want to see this across your own stores? Book a demo.
Prime Cost Alerts
KYN flags problems while you can still fix them — not weeks later when the books close.
Food Cost Exceeded Target
A location's food cost crossed its target threshold.
Labor Cost Exceeded Target
Labor percentage moved above the set target.
Prime Cost Above Threshold
Combined Prime Cost crossed your warning line.
Weekly Variance
Prime Cost moved sharply versus last week.
Month-over-Month Change
A sustained shift in Prime Cost month to month.
Why Prime Cost Gets Out of Control
Prime Cost rarely drifts for one reason. KYN helps you see which side — food or labor — is driving it, and why.
Waste
Spoilage, over-prep, and trim loss quietly raise cost of goods.
Portion issues
Inconsistent portions push food cost up plate by plate.
Theft
Inventory walking out the back door never shows in sales.
Vendor price increases
Costs rise without notice and erode margin.
Low sales mix
Selling more low-margin items drags the average down.
Menu pricing problems
Prices that haven't kept up with cost.
Overtime
Unplanned hours add cost fast.
Poor scheduling
Staffing that doesn't match sales volume.
Built for Multi-Location Restaurants
Prime Cost is most powerful across a group. KYN benchmarks it for restaurants, franchise groups, and multi-location operators.
Store Benchmarking
Rank every location by Prime Cost and see your best and worst performers instantly.
Regional Comparison
Group stores into regions to compare Prime Cost across territories and teams.
Consolidated Prime Cost
Roll every location up into one company-wide Prime Cost number.
From 72% to 64%
What it looks like when an operator gets Prime Cost back under control. (Illustrative example.)
Before
72%
Prime Cost well into the danger zone — profit barely there, cash tight.
After
64%
Food waste, portioning, and overtime addressed once they were visible.
The Result
- Higher profitability
- Better cash flow
- Tighter labor control
Prime Cost Tracking, Built by Restaurant Operators
KYN was built by people who managed multi-unit restaurants — who know that Prime Cost has to be watched daily, not discovered at month-end.
It’s a financial performance platform built by operators who have managed more than 170 locations.
170+
Locations managed
35+ Yrs
Multi-unit financial oversight
Daily
Food + labor tracked
Per Store
Prime Cost benchmarked
Restaurant KPIs Related to Prime Cost
Food Cost Management
Control the food side of Prime Cost — actual vs. theoretical, waste, and variance.
Labor Cost Management
Control the labor side — scheduling, overtime, and labor-to-sales.
Prime Cost FAQ
Clear answers about Prime Cost for operators, franchisees, and restaurant accountants.
1 What is Prime Cost?
2 What is a good Prime Cost percentage?
3 Why is Prime Cost important?
4 How do I lower Prime Cost?
5 Does KYN calculate Prime Cost automatically?
6 Can KYN compare Prime Cost across locations?
7 How often should Prime Cost be reviewed?
8 Does KYN track Food Cost and Labor Cost separately?
Ready to Take Control of Prime Cost?
See how KYN helps restaurant operators monitor, benchmark, and improve Prime Cost across every location.
15-minute live walkthrough. No obligation. No credit card required.
