Why do some restaurants thrive while others struggle with razor-thin margins? Prime cost is your food cost plus labor cost combined - typically eating up 55-65% of your revenue. Smarter scheduling alone can slash your prime cost by 3-8%.
What is prime cost and why scheduling is crucial
Prime cost equals food cost plus labor cost. It's your most critical metric because it reveals how much revenue gets consumed by direct expenses. A healthy prime cost sits between 55-65% of your revenue.
💡 Example:
Restaurant with €40,000 monthly revenue:
- Food cost: €12,000 (30%)
- Labor cost: €14,000 (35%)
- Prime cost: €26,000 (65%)
Room for other costs and profit: €14,000 (35%)
Cut labor cost by just 5% (from 35% to 30%), and you'll pocket €2,000 more profit monthly. That's €24,000 annually - purely through better scheduling decisions.
Analyze your revenue patterns by day and hour
Before creating schedules, understand your busy periods. Too many restaurants schedule based on hunches rather than hard data.
💡 Example revenue pattern:
Bistro, average Tuesday:
- 12:00-14:00: €450 (lunch peak)
- 14:00-17:00: €120 (quiet)
- 17:00-19:00: €380 (early dinner)
- 19:00-22:00: €680 (evening peak)
Total: €1,630 on Tuesday
Examine these patterns for every day of the week. Monday differs dramatically from Friday. Summer patterns shift from winter ones. Pull POS data from at least 8 weeks to identify reliable trends.
Calculate how much staff you really need
The golden rule: labor cost should represent 25-35% of revenue for most restaurants. But this percentage fluctuates throughout the day.
- Lunch service: 1 cook per €200-300 revenue per hour
- Dinner service: 1 cook per €300-400 revenue per hour
- Service staff: 1 server per €400-600 revenue per hour
⚠️ Note:
These serve as guidelines only. Fine dining establishments require more staff per euro than casual bistros. Adjust these ratios to match your concept.
Based on real restaurant P&L data, establishments that track these ratios weekly see 12% better labor cost control than those who don't.
Flexible scheduling: more staff during peaks
The strategy is straightforward: deploy more people during high-revenue periods. Scale back during quiet times.
💡 Smart scheduling example:
Same bistro, optimally scheduled:
- 12:00-14:00: 2 cooks + 2 service staff (€450 revenue)
- 14:00-17:00: 1 cook + 1 service staff (€120 revenue)
- 17:00-22:00: 3 cooks + 3 service staff (€1,060 revenue)
Labor cost: 28% instead of 35% = €114 savings per day
Utilize on-call staff for peak periods. Maintain core staff for baseline operations. This creates a flexible team that scales with your revenue.
Cross-training: one person, multiple tasks
Train your team across multiple functions. A cook who can also serve customers. A server who handles dishwashing. This flexibility transforms your scheduling options.
- Kitchen cross-training: Prep, grill, plating
- Service cross-training: Service, bar, register
- Multi-skilled shifts: During slow periods, everyone tackles cleaning
Compensate people slightly more for additional skills. The savings in total labor costs far exceed this investment.
Measure and adjust weekly
Scheduling isn't a set-and-forget task. Review these metrics every week:
- Labor cost percentage: What portion of revenue went to staff?
- Revenue per FTE: How much revenue per staff member hourly?
- Overtime: Where did scheduling break down?
💡 Weekly report example:
Week 12 vs. Week 11:
- Revenue: €9,200 (+€400)
- Labor cost: €2,760 (30% vs. 32% previous week)
- Prime cost: €5,520 (60% vs. 62% previous week)
Improvement: €184 more profit from smarter scheduling
Tools like KitchenNmbrs automatically calculate your prime cost. You'll immediately spot how scheduling changes impact your profitability.
How do you optimize your scheduling? (step by step)
Collect 8 weeks of POS data
Download revenue figures per hour, per day from your POS system. You need at least 8 weeks to see reliable patterns. Watch out for seasonal influences and special days.
Calculate current labor cost percentage
Add up all personnel costs (wages, payroll taxes, overtime) and divide by your total revenue. Do this per day and per week to discover patterns.
Create an ideal schedule based on revenue patterns
Schedule more staff during peak hours, fewer during quiet times. Aim for 25-35% labor cost. Test this schedule for 2 weeks and measure the result.
✨ Pro tip
Track your revenue-per-staff-hour ratio every 2 weeks. If it drops below €180 during peak hours, you're overstaffed. Above €520, your service quality likely suffers from understaffing.
Calculate this yourself?
In the KitchenNmbrs app you can do this in just a few clicks. 7 days free, no credit card.
Was this article helpful?
Frequently asked questions
What is a healthy prime cost for restaurants?
A healthy prime cost ranges between 55-65% of your revenue. This combines food cost (25-35%) plus labor cost (25-35%). Fine dining can run higher, fast casual typically lower.
How often should I adjust my schedule?
Review your labor cost percentage weekly and adjust your base schedule monthly. Seasons, holidays, and market trends require ongoing changes to your planning approach.
Can I send staff home if it's quiet?
This depends on employment contracts and local labor laws. On-call staff offer more flexibility for deployment. Always communicate expectations clearly during the hiring process.
How much revenue should one cook handle per hour?
This varies significantly by restaurant concept. Casual dining: €200-400 per cook hourly. Fine dining: €150-300. Fast casual: €300-500. Track these metrics in your own operation for accuracy.
What if my team is too small for flexible scheduling?
Start by cross-training existing staff members. Adding just one extra skill per person creates immediate flexibility. Gradually build a reliable pool of on-call workers.
Should I schedule the same staff every week?
Mix consistency with flexibility. Keep your strongest performers on high-revenue shifts, but rotate others to prevent burnout and maintain skill development across your team.
How do I handle scheduling during seasonal fluctuations?
Build seasonal staffing models based on historical data. Use temporary contracts during peak seasons and cross-train core staff to handle multiple roles during slower periods.
📚 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.
Calculate your break-even point in seconds
Food cost is just one part of the story. KitchenNmbrs also helps you structure labor costs and other expenses for a complete break-even overview. Start free.
Start free trial →