Bookkeeping Pro · …
Calculate prime cost: cost of goods plus labour
Prime cost is the key number in hospitality. The system combines cost of goods with worked hours and employer costs, against your revenue.
The problem: your two biggest costs viewed separately
Purchasing and staff together are often over 60% of revenue. Looking at them separately, you won't see in time that you're losing money.
How it works
- 1
Worked hours
Hours from time tracking are multiplied by each employee's hourly wage.
- 2
Plus employer costs
30% per venue by default, adjustable per employee, for example for permanent or on-call staff.
- 3
Plus cost of goods
Cost of goods for the same month comes from margin control.
- 4
Colour on your prime cost
Up to 60% green, 60 to 65% orange, above that red.
What you gain
- One number showing whether your venue is healthy
- Gross wages and employer costs shown separately
- Alert for employees without an hourly wage
- Month-by-month comparison
Real-world example
Revenue € 52,000 excl. VAT, cost of goods € 15,600, labour all-in € 17,200. Prime cost 63%: orange. A rota change on quiet Tuesdays brings it back under 60%.
Frequently asked questions
Why 30% employer costs?
It's a common hospitality average. Permanent staff are often lower, on-call staff higher; you set it per employee.
What is a good prime cost?
Below 60% of revenue is usually considered healthy.
More Bookkeeping Pro features
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Bookkeeping Pro is an add-on to your SmartPOSapp till. ….
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