Food Cost

With the right formulas and resources you can unlock one of the most important restaurant metrics and optimize your business for success.

Food cost. Calculating food cost percentage can be time consuming and a little confusing but it doesnt have to be. Add all of those sums together to find your total cost. Your food cost for the cheeseburger on the menu is 183. Recipe cost calculator is intended for providing help in preparation of the accurate cost for any dish of the menu.

However further analysis using the weighted sales mix analysis reveals a potential food cost percentage of 294. For our example lets say you have a total cost of 3000. Remember your food cost should be around 30 35 percent. As a restaurant owner you have several options when it comes to determining food costs for a new menu.

If the food cost analysis stops at this point one may conclude that the cost of food is in line because the actual food cost is slightly below the maximum allowable food cost percentage. The variance that exists between the actual and potential food cost percentage is 46. Multiply the food cost for each item by how many portions of that item is sold every week. Well present a few here and you can choose the one that works best for your business or you can skip to the bottom to use a handy dandy food cost calculator which will give you a good ballpark estimate.

At its core food cost is simply the cost incurred by your restaurant on food after taking into consideration all external and implicit costs. Determine the price by dividing the purchase. The cost associated for the utility will vary from restaurant to restaurant but for the purposes of the initial food cost analysis we recommend a range of 10 up to 300 for each menu item. Once you are open for a few months you can figure out a more exact cost by calculating how much money you spend on average monthly for these items and divide that total amount by total number of dishes sold on an average month.

You can also update spreadsheet with image of your dish and add a short description or. In case you do not know how easy you may define what percentage refers to the cost of ingredients for preparing an item in your restaurant menu i bring you this simple formula. Food cost percentage formula shows the percentage of expenses for the preparation of some meal or drink. Thats how much money you spent to make the food that went out of your kitchen this week.

You can calculate the cost of your dish by adding all primary and secondary ingredients then add cost of preparation and utilities. Food cost is used by restaurant operators to determine how much money they make back on the sale of a dish compared to how much it costs to make that dish. Food cost percentage total.