![]() Then, add in the cost of new inventory you purchased during the time period in question. You can find that out with this cost percentage formula:ĬoGS= – (Ending Inventory Value)įirst, take stock of how much your current inventory costs. Your Total Cost of Goods Sold is how much the food and beverages you’ve sold over a given period of time cost your restaurant. Calculate your Total Cost of Goods Sold (CoGS). Here’s a step-by-step look at how to implement this cost percentage formula:ġ. Total Food Cost Percentage = (Total Cost of Goods Sold / Total Revenue) x 100 Want to find out what fraction of your restaurant’s money is eaten up by food costs? Here’s the formula for total food cost percentage: How to Calculate Food Cost Using a Food Cost Formula Total Food Cost Percentage Formula for Cost Per Meal Now that you understand total food cost percentage and cost per dish, here are the food cost formulas and how to calculate those numbers. Food Cost Percentage Formula Calculation by Meal and Dish You can use food cost information to reign in your overall food costs and uncover which dishes you could charge more for. Perhaps you excelled at math (which we’re equating to a low percentage for your restaurant’s chicken piccata) but weren’t so great at history (a high percentage for your lamb roast). Your GPA was an overview of your academic performance, but didn’t give much insight into which subjects you excelled in or struggled with.įood cost percentage per dish, on the other hand, is like your report card: a subject-by-subject breakdown of your success in the classroom. Think of total percentage food cost as your high school GPA. Total food cost percentage examines the cost of all food supplies at your restaurant and total revenue over a certain period of time. Food cost can be calculated in several ways. What Is Food Cost Percentage?įood cost percentage indicates what proportion of your money is spent on buying food and beverage supplies for your restaurant. Want to master your restaurant’s finances and maximize profits for your business? It all starts with learning how to calculate restaurant food costs with a food cost formula. How to make calculating your food cost easier.How to use food cost percentage to set menu prices.Why it’s important to calculate food cost percentage for your restaurant.How to use a formula to calculate costs by meal and dish.By using a food cost formula to better understand your total food costs, you’ll be able to optimize profits and protect your bottom line. Knowing your restaurant’s food cost percentage can help you make effective business decisions, like how much to charge for items on your menu for maximum profitability or when it’s time to look for new suppliers. With so many other operational expenses for restaurants – like labor, rent, utilities, and marketing – food cost takes up a large chunk of that cash! Do you know how much your restaurant spends on food? The average restaurant spends between 20 and 40% of its revenue on food. Cafe Conquer the rush, maximize margins, and boost loyalty with a powerful cafe POS.Bakery Sell more treats in less time and streamline operations with the POS bakeries love.Coffee Shop Keep lines moving and drive repeat business with an intuitive POS made for coffee shops.Catering Execute large orders on tight deadlines with an intuitive platform built with catering in mind.Fast Casual Deliver quality and convenience at speed with the POS built for fast casual needs. ![]() Bar & Club Serve drinks faster and sell more top-shelf upgrades with the POS built for bars.Quick Service Restaurant Reach more customers and keep them coming back with a POS built to run at QSR speed.Winery Manage your dining room and your wine shop with the all-in-one solution wineries prefer.Fine Dining Deliver elevated experiences and exceptional service with a seamless POS platform.Brewery Increase beer sales and reduce spillage with an intuitive POS breweries love.Family Style Turn more tables and delight guests with a POS built for family style restaurants.Food Truck Turn long lines into large profits with a fast and reliable POS for food trucks.Full Service Restaurant Turn more tables, upsell with ease, and streamline service with a powerful system built for FSRs.From food trucks to FSRs, get the POS built for restaurants.
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