Restaurants: Tired of Slim Profit Margins? Start With Your Prime Costs

Running a restaurant has never been for the faint of heart — and today’s economic pressures aren’t making it any easier. Rising ingredient prices, labor shortages, increased utility costs, and shifting consumer habits have squeezed margins to historic lows. For many operators, the question has shifted from How do I grow? to How do I stay profitable without burning out?

One of the most effective — yet frequently overlooked — ways to strengthen profitability lies in a number every restaurateur knows well: prime costs. This is the combined total of food and labor expenses. In a well-run operation, prime costs should land between 55%–65% of total revenue. When that number creeps higher, profits vanish.

So how do you bring it back down?

The most direct solutions are also the most powerful: lower food costs and reduce labor strain — without sacrificing quality or creativity.

That’s where Unity Foods, LLC is helping restaurant owners across Washington and Oregon regain control of their margins.

As an independent, locally owned distributor, Unity Foods offers competitive pricing on a broad portfolio of products. Many clients see immediate savings simply by switching suppliers — enough to meaningfully improve their monthly bottom line. But the real advantage goes far beyond cost.

Saving Labor Without Cutting Staff

Instead of sending employees to multiple wholesale stores or specialty shops, Unity Foods delivers directly to the restaurant. This eliminates unproductive labor hours, reduces vehicle expenses, and keeps staff focused where they belong: in the kitchen and on the floor.

Operators report an unexpected benefit as well: peace of mind. With six-day-a-week delivery throughout Oregon and Washington, Unity Foods removes the stress of wondering whether critical ingredients will be in stock — or whether a service day will be derailed by last-minute substitutions.

In an industry where time truly is money, that reliability is invaluable.

The Hidden Math of Value-Added Products

Smart operators aren’t just reducing ingredient costs — they’re also using Unity Foods’ catalog to strategically reduce the labor side of the prime cost equation.

Unity Foods partners directly with local and regional manufacturers to source value-added products that deliver an “in-house made” feel without the in-house labor.

At first glance, pre-made items may seem more expensive than scratch cooking. But the math changes when you factor in:

• Prep labor

• Waste

• Yield loss

• Consistency issues

• Training time

• Speed during service

Consistency & Speed in Real Life

Take mashed potatoes. Scratch-made requires washing, peeling, boiling, mashing — hours of prep before service even begins.

A high-quality product like Lutosa Potato Purée removes all of that. Kitchens get a consistent, premium product ready in minutes, with fixed costs per serving and almost zero labor.

Local Quality, Zero Prep

Unity Foods also carries fresh, locally produced items like locally made hummus. Instead of soaking chickpeas, boiling batches, and managing blender loads, chefs receive a fresh, scratch-quality product — made by local producers, just not on their labor clock.

This approach eliminates hidden costs such as:

• Over-ordering

• Spoilage

• Burnout from repetitive prep

• Variability between prep cooks

Chefs regain the freedom to focus on plating, creativity, and speed — not peeling potatoes or managing batch inefficiencies.

The Bottom Line

Lowering your prime costs doesn’t just strengthen your P&L. It creates breathing room. It restores creativity in the kitchen. It frees owners to invest in staff, ambiance, marketing, and guest experience. And it brings back something many restaurant professionals have been missing: sustainability and joy in the craft.

If your restaurant is feeling the squeeze, it may be time to work smarter, not harder. Re-evaluating how—and where—you source your ingredients could be the most profitable decision you make this year.

Because when your supply chain works for you, everything else starts to fall into place.