Total Food Service

3 Numbers Every Restaurant Owner Must Know to Protect Profit

Restaurant owners must focus on three core metrics—prime cost, breakeven point, and weekly profit benchmark—to turn profit from a guessing game into a predictable outcome. Prime cost, the sum of food and labor expenses, should sit around 55% of sales for establishments earning over $850,000 and 60% for smaller operations. Knowing the breakeven point tells managers the exact sales level needed to cover all outflows, preventing false celebrations on busy but unprofitable days. Tracking weekly profit benchmarks provides immediate feedback on whether the business is performing by design.