Running Restaurants · 2026-02-18 · 8 min
In this episode, Roger Beaudoin of Restaurant Rockstars explains the crucial concept of prime cost in the restaurant industry (the combined percentage of food, beverage, and labor costs relative to sales). He discusses strategies for managing prime cost, such as accurate menu costing, promoting high-profit "cash cow" items, enforcing portion control, boosting alcohol sales, and efficient labor scheduling. Roger shares real-world examples of restaurants losing profits due to poor menu management and emphasizes the importance of understanding item profitability. The episode highlights how effective prime cost management is essential for restaurant profitability, especially amid rising costs and industry challenges.
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