Restaurant Food & Labor Cost Calculator
An immediate, objective mirror of your food and labor expenses against Israeli industry benchmarks and full 2026 statutory employer payroll overheads. Completely computed in your browser.
FAQ
Frequently Asked Questions: Restaurant Prime Cost
What is Prime Cost and why is it vital for restaurateurs?
Prime Cost is the sum of Cost of Goods Sold (food & beverage) and total Labor Cost. Making up 55% to 65% of net revenue, it is the single largest controllable expense group in hospitality and the ultimate predictor of restaurant profitability.
What is a healthy Food Cost percentage in Israeli restaurants?
In Israel, target food cost typically ranges from 28% to 33% depending on concept: cafes generally run 27%-30%, chef restaurants 30%-33%, and bars 22%-26% (due to higher beverage gross margins).
What is the true employer cost per employee hour in Israel for 2026?
Statutory minimum wage is 35.40 ₪/hr from April 1, 2026. On top of base pay, statutory employer overheads (pension, severance under Section 14, employer National Insurance, leave, and holiday pay) add 20% to 25% (average 22%). An employee earning 40 ₪/hr costs the business approximately 49 ₪/hr in actual cash outlay.
How can food cost be trimmed without cutting portion size or food quality?
Meaningful food cost reductions come from prep yield control, digital station checklists, strict FIFO inventory rotation, minimizing food waste at line stations, and cross-checking supplier invoices against contracted price lists.