Remove Accounting Remove Maintenance Remove Portion Control Remove Procurement
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Prime Costs: Understanding and Application for Restaurants

Synergy Suite

Understanding and managing prime costs is vital for several reasons: Profitability: Prime costs, comprising both the cost of goods sold (COGS) and labor expenses, typically account for the largest portion of a restaurant’s expenses. Controlling them effectively can significantly impact your bottom line.

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4 Proven Strategies Operators in Saudi Arabia Must Know To Grow Their Restaurant Profit Margin

The Restaurant Times

One can calculate the net restaurant profit margin for an accounting period by dividing net income by sales. This includes the cost of ingredients, rent, equipment, depreciation, interest and taxes, repairs, wages, utilities, and maintenance. A Brief About How To Calculate The Net Restaurant Profit Margin. The formula is : .