Operations

Know your numbers: prime cost

Prime cost is the biggest number you control as an owner: food cost % + labor cost %, each measured against net sales. Keep prime cost at target and the rest of the business gets much easier. These are the Sunrise Social targets:

Food Cost

28–31%

of net sales

Labor Cost

28–32%

of net sales

Prime Cost

60% or less

food + labor combined

The weekly check (5 minutes, every Monday)

Labor % = labor $ for the week ÷ net sales for the week. Toast reports both.
Food % = food & beverage purchases for the week ÷ net sales for the week. This is your quick weekly check — it moves around with delivery days, and that’s normal.
Prime % = food % + labor %. At or under 60% is the target.

Once a month, get your exact food cost with an inventory count: (beginning inventory + purchases − ending inventory) ÷ net sales.

Why one point matters

At $25,000 in weekly net sales, one point of prime cost is $250 a week — about $13,000 a year. Small moves in food and labor are real money at the end of the year.

Questions?

Start here in the portal. If you still need help, contact Alexis Morgan — alexis@ownasunrise.com / (305) 331-9773.