What Is Prime Costs? Food, Beverage, and Labor Combined Search logs show operators typing what is prime costs as a plural, and the instinct is right. Prime costs are the combined operating costs of the product and the people who make and sell it: food, beverage, and labor. The phrase is often written as “prime cost” in textbooks, but on the floor you feel it as several bills hitting the same week. Groceries, liquor invoices, and payroll...