Cluster G · Restaurant + Commercial Kitchen

Restaurant and commercial kitchen math, by people who actually know food equipment.

Food cost, labor cost, prime cost, equipment payback, walk-in sizing. The four numbers every operator has to get right, figured out in plain English. No signup. No lead forms. No fluff.

1 calc live 9 calcs coming Free, no signup ASHRAE + NRA sourced Scott Collins · 30+ yr commercial food equipment
Formulas disclosed on every page
NRA + ASHRAE + BLS sourced
No signup, no email gate
Last reviewed May 2026

Start with what you need most. New calcs ship monthly. The 4-calc triangle (food cost + labor + prime cost + break-even) is the highest-leverage set for any restaurant operator and ships first.

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Walk-In Cooler BTU Sizing

ASHRAE refrigeration load method. Returns total BTU/hr with breakdown: transmission, infiltration, internal, and product load. Helps you size or replace a commercial walk-in cooler correctly.

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Food Cost Percentage Calculator

Your ideal food cost target vs your actual food cost, by menu item and by week. The National Restaurant Association targets 28 to 35 percent. Know where you stand.

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Recipe / Plate Cost Calculator

Ingredient-by-ingredient plate cost, yield-adjusted. Shows exact food cost percent per item and what price gets you to your target margin. Recipe engineering made visible.

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Labor Cost Percentage Calculator

Total labor as a percent of revenue, by shift and by week. Covers hourly wages, employer FICA, and overtime burden. NRA target: 30 to 35 percent. US BLS foodservice wage data sourced.

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Prime Cost Calculator

Food cost plus labor cost as one number. Industry benchmark: prime cost under 60 percent of revenue is healthy. Above 65 percent is a warning. See where your operation sits.

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Restaurant Break-Even Calculator

Cover count and average ticket needed to cover fixed costs, variable costs, and owner draw. Shows daily, weekly, and monthly break-even point. Revenue targets you can actually plan around.

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Commercial Dishwasher Payback

Hobart-class commercial dishwasher versus hand-wash labor. Upfront equipment cost, water and chemical savings, labor freed per shift, and payback period in months. Real numbers from the commercial kitchen floor.

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Walk-In Freezer Sizing

BTU/hr sizing for commercial walk-in freezers at 0°F and -10°F target temps. ASHRAE transmission and infiltration loads, with pull-down load for large product loads. Companion to the cooler calc.

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Commercial Fryer + Oven Energy Comparison

Gas vs electric energy cost for commercial fryers, convection ovens, and combis. Includes ENERGY STAR commercial kitchen efficiency ratings and hourly operating cost side-by-side.

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Equipment Lease vs Buy

True cost of leasing versus purchasing commercial kitchen equipment. Covers Section 179 deduction, residual value, maintenance cost, and capital opportunity cost. Which makes more sense for your operation.

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Restaurant Operator Economics: The Four Numbers That Tell the Whole Story

Most restaurants do not fail because the food is bad. They fail because the owner did not know their food cost percentage, their labor cost percentage, or their prime cost until the bank account told them. These four numbers run together, and if you are not tracking all four, you are flying without instruments.

This primer covers what each number means, where the industry benchmarks come from, and how equipment decisions feed into the whole picture. Every FigureNerd calculator in this cluster is built from these fundamentals, with primary sources cited so you can check the math yourself.

Food Cost Percentage: Where Most Operators Start (and Stop)

Food cost percentage is the cost of ingredients sold divided by the revenue from those sales. A restaurant that spends $3.50 in food to produce a plate that sells for $12 has a food cost of 29.2 percent.

NRA Food Cost Benchmarks by Concept Type

Source: National Restaurant Association 2026 Restaurant Industry Outlook; operator benchmarking data from NRA's annual operations survey.

These are targets, not guarantees. A restaurant at 38 percent food cost is not automatically in trouble if its labor cost is 24 percent and its fixed costs are lean. That is why food cost alone is a lagging indicator. The number you actually manage is prime cost.

Labor Cost Percentage: The Number That Moves Every Day

Labor cost percentage is total labor expense divided by total revenue. Total labor includes wages, employer-side payroll taxes (FICA is 7.65 percent of wages on the employer), and any benefits. It does not include the owner's draw unless the owner is also on payroll.

The US Bureau of Labor Statistics pegs median hourly wages for food preparation and serving workers at $14.22 nationally as of the most recent release, with significant variation by state. Minimum wage floors in California, New York, and Washington push the effective floor well above federal minimum. Restaurant operators in those states routinely see total labor cost reach 40 to 45 percent before any management adjustment.

Source: US Bureau of Labor Statistics, Occupational Employment and Wage Statistics (OEWS), food preparation and serving related occupations, 2025.

Labor Cost Benchmarks

Labor is the most controllable cost on a week-to-week basis, which is also why it is the most abused. Cutting hours to hit a labor number without adjusting the schedule to match real covers is the fastest path to poor service, poor reviews, and slower future cover counts.

Prime Cost: The Single Most Predictive Number

Prime cost is food cost plus labor cost. It is the most predictive single metric of restaurant viability because it captures the two largest variable expenses together. A restaurant that manages prime cost manages its survival.

Industry standard: prime cost below 60 percent of revenue is the target for a viable independent restaurant. Between 60 and 65 percent, you are thin. Above 65 percent, fixed costs (rent, utilities, insurance, debt service) will grind you down unless your volume is exceptional.

Example: a restaurant doing $80,000 per month in revenue with $25,600 in food cost (32 percent) and $26,400 in labor (33 percent) has a prime cost of $52,000, or 65 percent. That owner is one slow month away from a cash problem and needs to understand that before the month arrives, not after.

Break-Even: How Many Covers, at What Ticket

Break-even analysis answers the question the prime cost number cannot: given your fixed costs and your prime cost percentage, how many covers at what average ticket do you need to open the doors and not lose money?

Fixed costs for a restaurant typically include base rent, triple-net charges, general liability insurance, equipment loan payments, and management salaries. For an independent operator, $15,000 to $35,000 per month in fixed costs is common depending on market and concept size.

If your contribution margin (what is left after food and labor per dollar of revenue) is 35 cents, and your fixed costs are $20,000 per month, you need $57,143 in monthly revenue to break even. At a $22 average ticket, that is 2,598 covers. At five days per week, that is 130 covers per day. That is a number you can put on a schedule.

Equipment Payback: Where the Commercial Kitchen Math Gets Specific

Equipment decisions in a commercial kitchen sit at the intersection of capital cost, operating cost, and labor cost. A commercial dishwasher from Hobart or Meiko does not just wash dishes. It replaces labor, reduces water cost (ENERGY STAR-certified commercial dishwashers use as little as 0.5 gallons per rack versus 2 to 3 gallons for hand-washing), and reduces chemical cost per cycle.

Source: ENERGY STAR Program Requirements for Commercial Dishwashers, Version 2.0 specification; ASHRAE Handbook of Refrigeration, Chapter 15 (commercial kitchen ventilation and equipment).

Walk-in coolers and freezers carry similar decision logic. An undersized condensing unit runs constantly, burns out early, and cannot maintain temperature during peak product load. An oversized unit short-cycles, wastes energy, and degrades the compressor. The ASHRAE refrigeration load method, which drives the walk-in cooler sizing calculator in this cluster, breaks down the load into transmission, infiltration, internal, and product components so you can see where the BTUs are actually coming from and design around them.

Commercial refrigeration decisions also feed directly into food cost: a walk-in that cannot hold temperature during peak ambient days is a walk-in that spoils product and runs food cost up. Equipment sizing is food cost management.

Why This Cluster Exists at FigureNerd

Hadassah Enterprises Inc is a management and advisory company operating across multiple service verticals. Among our active clients, we work extensively in HVAC, refrigeration, mechanical systems, and commercial food equipment, supporting equipment-purchase decisions, vendor selection, and operational efficiency for restaurant operators, building owners, and small business clients. That operational depth is why the math in this cluster is built the way it is: not as a generic percentage calculator with a number and a wave, but as a tool that shows the underlying load calculation, the benchmark it is checked against, and the source it came from. If the math does not hold up to scrutiny, it should not be in the calculator.

If you want to request a specific restaurant or commercial kitchen calculator, use the tool request form on the FigureNerd homepage. The most-requested tools ship first.

· FigureNerd editorial Last reviewed: May 2026

Behind the math: real commercial food equipment experience.

Hadassah Enterprises Inc is a South Dakota management and advisory company. Among our active clients we work extensively in HVAC, refrigeration, mechanical systems, and commercial food equipment, supporting equipment-purchase decisions, vendor selection, and operational efficiency for restaurant operators, building owners, and small business clients. Our digital platform at figurenerd.com publishes free, methodology-transparent calculators that inform equipment-purchasing decisions. Every calculator cites primary sources and surfaces the math in plain English. Our editorial standards live at figurenerd.com/methodology.

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