How to Manage a Restaurant: Understanding the Most Important Numbers (Food Cost, Labor Cost, Prime Cost)

Today’s video will help you understand the most important numbers you need to control in your restaurant: food cost, labor cost, prime cost, and restaurant controllable costs/profits.

Controlling costs in your restaurant is the only way to have a profitable restaurant. But in order to be able to do that, you have to understand what numbers to track, where they come from, and how to make the calculations. Welcome to Understanding the Important Numbers 101!

Must See Video Highlights:

1:49 – Cost of Goods Sold (CoGS) defined
2:27 – Food Cost defined
2:25 – Download our FREE toolkit for all of these formulas!
3:20 – The biggest mistake calculating Food Cost
4:00 – What about Labor Cost?
4:47 – Plate Cost is not the same as Food Cost
5:30 – I have no idea what your food cost should be! Run if anybody tells you they do!
6:00 – What I can tell you: Prime Cost should be less than 60% and…
7:00 – RCC should be less than 66-68%


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