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These numbers might seem low, but only because the restaurant industry has many costs to cover, including ingredients, labor, rent, utilities, marketing, and other expenses. These costs can add up quickly, leaving a smaller portion of revenue as profit.
In essence, a keen understanding and effective management of prime costs become indispensable tools for restaurants aspiring not only to thrive in a competitive market but also to build a sustainable foundation for long-term financial success. This category includes: Alcoholic Beverages: The cost of wine, beer, spirits, and mixers.
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