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Prime cost · Bar and pub

Prime cost benchmarks for bar and pub

Illustrative — where each sales dollar goes for this format.

Bar and pub operators typically run a prime cost of 52-60% — labour 24-30%, cost of goods 24-30%. Here is what drives it, and the number worth watching instead.

The bands

Prime cost52-60%COGS + labour ÷ net sales
Labour24-30%Including salaried managers
Cost of goods24-30%Food, beverage, packaging

Beverage-led COGS is lower than food-led, but pour cost variance and shrinkage are larger.

What to watch instead

Pour cost and inventory shrinkage. The gap between theoretical and actual COGS is where the money goes.

Why the band is not your target

These ranges are orientation, not management. The benchmark that matters is your own best location, because it already proves what is achievable on your menu, your suppliers and your labour market — and nobody can argue it is unrealistic.

In a twelve-store group measured in August 2026, the group averaged 50.2% prime cost. Underneath that average the best store ran 23.60% and the worst ran 75.84% — same brand, same menu, same suppliers.

Work out what your own spread is worth →

How bar and pub compares to other formats

Typical prime cost bands by format
FormatPrime costLabourCOGS
Quick service (QSR)55-62%25-30%28-33%
Fast casual58-65%27-32%29-34%
Full service60-68%30-35%28-34%
Pizza52-60%25-30%25-30%
Coffee shop50-58%28-34%20-26%
Bar and pub52-60%24-30%24-30%
Ghost kitchen55-68%20-26%30-38%
Bakery52-62%28-35%22-30%
Sandwich and deli55-63%25-31%28-34%
Juice and smoothie50-60%27-33%22-29%
Food truck50-60%22-28%28-34%
Catering48-60%22-30%26-32%

Before you trust any of these numbers

A prime cost figure is only as good as the hours behind it. If some of your worked hours have no cost attached — because staff clocked in on the POS but were never mapped to a roster record — your labour percentage, and therefore your prime cost, reads lower than reality.

In practice most multi-unit groups sit between 60% and 85% coverage before that is fixed. Check yours free →

Other formats

Quick service (QSR) · Fast casual · Full service · Pizza · Coffee shop · Ghost kitchen · Bakery · Sandwich and deli · Juice and smoothie · Food truck · Catering

See your own prime cost, per location

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