Restaurant prime cost is food cost, beverage cost and labour cost, taken together as the cost of running the site. Restaurant prime cost is not a substitute for a full profit and loss account, but it is one of the first numbers an operator should be able to see.
To calculate restaurant prime cost you need sales that match the till, purchases that belong in cost of sales, and payroll that belongs in the same period. If any of those are reconstructed at month-end, restaurant prime cost will move for the wrong reasons.
What to include
Food purchases and related wastage where you record it, drink purchases, and labour including the hours hospitality actually works. Overheads such as rent sit below restaurant prime cost. Mixing them in will hide whether the kitchen or the rotas moved.
How it should appear
Restaurant prime cost belongs on the management pack beside food GP, beverage GP and labour %, not as a one-off spreadsheet. We do not publish a “correct” percentage; the useful number is yours, current, and comparable.
