Take Control of Your Brewery's Finances with This Metric

Think tracking Prime Cost is complicated? It doesn't have to be! With the right tools and a simple formula, you can easily measure your Prime Cost and uncover ways to improve your margins. 

At Arizona Wilderness Brewery, we introduced a structured prime cost tracking system using QuickBooks and Toast data, providing restaurant management with a simple financial insight that has been utilized in the restaurant industry for decades. We set out to achieve a target of 60% prime cost. The team became more active in financial conversations and intentional about labor scheduling and cost control. As a result, and even under inflationary pressure, in Q4 2024, they achieved their closest result to that goal, improving the restaurant's profitability while upholding their customer service standards. This success highlights the power of financial visibility in driving the profitability of each taproom location.

The bottom line: Hitting a Prime Cost of 60% allows most restaurants to return 20% Profit Margins per location and 10% profit margins across the entire company. When you have the right financial insights in front of decision-makers, you gain the confidence to trial new operating models, adjust pricing, and maximize profitability.

Tracking your Prime Cost regularly gives you the financial insights you need to make smarter decisions, improve efficiency, and boost profitability. 

Want tips on simplifying your brewery's financial tracking? I have some ideas on how to start small or do it all!