GGB Prime cost
Food and labour cost combined. The two controllable giants of the P&L, typically held inside a 60–65% ceiling of revenue.
Prime cost is the sum of everything you consumed to make the product (COGS) and everything you paid people to make and serve it (total labour). It is the largest block of cost an operator can actually control week to week. Disciplined operations manage prime cost against a ceiling of roughly 60–65% of revenue; above that, rent and overheads have almost nothing left to live on.
Prime cost % = (COGS + total labour cost) ÷ revenue × 100
COGS = food and beverage actually consumed in the period; labour = salaries, benefits, visas and accommodation; revenue = net sales for the same period.
Illustrative: a venue turning AED 200,000 a month spends AED 58,000 on food consumed (29%) and AED 54,000 on total labour (27%). Prime cost is AED 112,000, which is 56% of revenue, inside the typical 60–65% ceiling with room left for rent and overheads.
Benchmark your prime cost