How many restaurants fail because owners schedule staff by instinct rather than numbers? Prime cost (food cost + labor cost) determines if your restaurant turns a profit or bleeds money. Most operators plan staffing by gut feeling, watching their labor costs spiral out of control.
What is prime cost and why is it crucial?
Prime cost combines your food cost and labor cost into one metric. It's the single most important number that tells you if your restaurant runs profitably.
💡 Example:
Restaurant with €50,000 monthly revenue:
- Food cost: €15,000 (30%)
- Labor cost: €20,000 (40%)
- Prime cost: €35,000 (70%)
This restaurant bleeds money. Prime cost must stay below 60%.
Typical prime cost benchmarks:
- Fine dining: 55-65%
- Casual dining: 50-60%
- Fast casual: 45-55%
- Delivery: 50-65%
Calculate your maximum labor cost per day
Smart staff scheduling starts with knowing exactly how much you can spend on labor each day.
Formula:
Maximum labor cost = (Expected revenue × Prime cost %) - Expected food cost
💡 Example calculation:
Tuesday you expect €2,500 revenue:
- Target prime cost: 58%
- Expected food cost: 30% = €750
- Prime cost budget: €2,500 × 0.58 = €1,450
- Maximum labor cost: €1,450 - €750 = €700
You can spend maximum €700 on staff that day.
Distribute labor cost across your shifts
Now you know your daily budget. Split this across services based on when you're busiest.
- Lunch shift: 30-40% of total labor cost
- Dinner shift: 60-70% of total labor cost
- Base staffing (prep, cleaning): fixed cost
💡 Example distribution of €700 labor cost:
- Prep/base (10:00-16:00): €200
- Lunch service (12:00-15:00): €150
- Dinner service (17:00-23:00): €350
Check: €200 + €150 + €350 = €700 ✓
Convert this to concrete hours per position
Split your budget across different positions based on their hourly rates. And here's one of the most common blind spots in kitchen management: many operators forget to include the true all-in costs of employment.
⚠️ Note:
Calculate with all-in costs: gross salary + employer contributions + vacation pay. Usually 130-140% of gross salary.
Example all-in costs per hour:
- Head chef: €25/hour all-in
- Cook: €20/hour all-in
- Server: €18/hour all-in
- Dishwasher/prep: €16/hour all-in
Build your daily schedule
With your budget per shift, you can now plan exactly who works when.
💡 Example dinner shift (€350 budget):
- Head chef: 6 hours × €25 = €150
- Cook: 6 hours × €20 = €120
- Server: 5 hours × €18 = €90
Total: €360 - €10 over budget. Server works 30 min less = €351 ✓
Monitor and adjust during the day
Keep tracking your revenue and adjust if reality differs from your forecast.
- Revenue 20% lower? Send someone home early
- Unexpected rush? Check if you can afford extra staff
- Maintain a buffer of 5-10% for unexpected situations
Use tools for automatic control
Manual tracking eats up time. Digital tools can automate this entire process.
An app can calculate your prime cost in real-time and alert you if you're about to exceed budget. You immediately see if your staff schedule stays within your financial targets.
How do you set up staff scheduling with prime cost control?
Calculate your maximum labor cost per day
Take your expected revenue × desired prime cost % and subtract your expected food cost. This gives you the maximum budget for staff that day.
Distribute the budget across your shifts
Divide your labor cost budget based on expected busy times: usually 30-40% for lunch and 60-70% for dinner. Account for fixed costs for prep and cleaning.
Convert budget to concrete hours per person
Use all-in costs (gross + employer contributions) per position to calculate how many hours you can schedule. Then plan who works when within this budget.
✨ Pro tip
Calculate your labor budget every morning based on that day's revenue forecast, then build your schedule around those exact numbers. This 15-minute daily routine prevents labor cost overruns that can destroy your monthly profits.
Calculate this yourself?
In the KitchenNmbrs app you can do this in just a few clicks. 7 days free, no credit card.
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Frequently asked questions
What if my prime cost consistently exceeds 60%?
You're either underpricing your dishes or overstaffing. First examine your food cost per dish and increase prices if necessary. Then reduce your staffing levels to match your revenue.
Should I include employer contributions in my labor cost calculation?
Absolutely. Calculate with all-in costs: gross salary + employer contributions + vacation pay. This typically runs 130-140% of gross salary. Without this, your calculations will be dangerously inaccurate.
How do I handle unexpected busy periods or slow days?
Build a 5-10% buffer into your schedule and monitor revenue throughout the day. With a 20% deviation from forecast, you can send staff home early or extend hours while staying within budget.
Can I calculate prime cost weekly or monthly instead?
You can, but daily monitoring gives you control. Weekly or monthly tracking spots problems too late to fix. Daily planning prevents nasty surprises at month-end.
What's a realistic prime cost for my type of restaurant?
Fine dining: 55-65%, casual dining: 50-60%, fast casual: 45-55%. These are guidelines though. Your specific situation—rent, concept, location—determines what's actually achievable for your operation.
How do I account for split shifts and overtime in my labor budget?
Factor in overtime rates (typically 150% of regular pay) and split shift premiums when calculating your daily budget. Track actual hours worked versus scheduled to catch budget overruns early.
📚 Sources consulted
- EU Verordening 852/2004 — Levensmiddelenhygiëne (2004) — Official source
- EU Verordening 853/2004 — Hygiënevoorschriften voor levensmiddelen van dierlijke oorsprong (2004) — Official source
- EU Verordening 1169/2011 — Voedselinformatie aan consumenten (2011) — Official source
- NVWA — Hygiënecode voor de horeca (2024) — Official source
- NVWA — Allergenen in voedsel (2024) — Official source
- Codex Alimentarius — International Food Standards (2024) — Official source
- FSA — Safer food, better business (HACCP) (2024) — Official source
- BVL — Lebensmittelhygiene (HACCP) (2024) — Official source
- Warenwetbesluit Bereiding en behandeling van levensmiddelen (2024) — Official source
- WHO — Foodborne diseases estimates (2024) — Official source
Food Standards Agency (FSA) — https://www.food.gov.uk
The HACCP standards shown in this application are for informational purposes only. KitchenNmbrs does not guarantee that displayed values are current or complete. Always consult the FSA or your local authority for the latest regulations.
Written by
Jeffrey Smit
Founder & CEO of KitchenNmbrs
Jeffrey Smit built KitchenNmbrs from 8 years of hands-on experience as kitchen manager at 1NUL8 Group in Rotterdam. His mission: give every restaurant owner control over food cost.
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