#760 · Business Tool

Restaurant Expense Calculator

Use this restaurant expense calculator to analyze food, labor, rent, utilities, marketing, insurance, and other costs against monthly revenue.

Calculator

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How to use this calculator

Enter major expense categories and monthly revenue. The calculator estimates total expenses, prime cost ratio, expense pressure, and savings opportunities.

What the result means

Restaurant expenses are healthier when prime cost is controlled, rent is not excessive, and total expense ratio leaves enough room for net profit.

Total Expenses = Sum of Expenses. Expense Ratio = Total Expenses ÷ Revenue × 100. Prime Cost = Food Cost + Labor Cost.

Prime cost is one of the most important restaurant operating metrics because food and labor are usually the largest controllable costs.

Example calculation

If food cost is $22,000 and labor cost is $19,000 on $70,000 revenue, prime cost is $41,000 or 58.57% of revenue.

Tips for better results

  • Review food and labor first because they drive prime cost.
  • Compare rent against revenue to detect occupancy pressure.
  • Set an annual savings target from the largest cost category.

FAQ

What percentage of restaurant revenue should go to labor costs?

Many restaurants try to keep labor cost around 25% to 35%, depending on service model.

What is an ideal restaurant expense ratio?

A healthier expense ratio leaves enough room for profit after food, labor, rent, and operating costs.

How do I reduce restaurant operating expenses?

Start with food waste, labor scheduling, supplier pricing, energy use, and low-return marketing spend.

What is restaurant prime cost?

Prime cost is food cost plus labor cost, usually the most important controllable restaurant cost metric.

What expenses hurt restaurant profitability most?

Food cost, labor cost, rent, debt, and waste usually have the biggest impact on restaurant profitability.

Restaurant decision module

MetricMeaning
Main ResultPrimary operating number for this restaurant decision.
Health Score0 to 100 score based on margin, cost pressure, risk, or growth.
BenchmarkRestaurant management benchmark for quick comparison.
RecommendationAutomatic next step based on the result.

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