Restaurant Calculators
Free financial calculators to help you track costs, optimize pricing, and boost profits. No signup required.
Frequently Asked Questions
Common questions about restaurant financial metrics
Food cost percentage is the ratio of your ingredient costs to your food sales revenue. It's calculated as (Cost of Goods Sold / Total Food Sales) x 100. Industry benchmarks suggest keeping it between 28-35%. A higher percentage means you're spending too much on ingredients or pricing too low.
Labor costs typically range from 25-35% of total revenue for restaurants. This includes wages, benefits, payroll taxes, and workers' compensation. Fast-food restaurants tend toward the lower end, while fine dining establishments may be at the higher end due to service requirements.
Prime cost is the sum of your food costs and labor costs - the two largest controllable expenses in a restaurant. It's calculated as: Prime Cost = Total Food Cost + Total Labor Cost. A healthy prime cost is typically 55-65% of total sales. Above 65% indicates serious cost control issues.
Break-even point is calculated as: Fixed Costs / (1 - Variable Cost Percentage). Fixed costs include rent, insurance, and salaries. Variable costs include food, supplies, and hourly wages. The result tells you how much revenue you need to cover all expenses.
Major delivery apps like DoorDash, UberEats, and GrubHub typically charge 15-30% commission per order, with most restaurants paying around 30%. These fees significantly impact profit margins, especially for restaurants with lower average order values.