The food is great, the service fabulous and the restaurant is busier than ever – but are you wondering why the bottom line isn’t all it should be?

Check your FOOD COST. A vital ratio – key to the success of any restaurant as it directly impacts profitability. A profitable restaurant typically generates a 28%-35% food cost. Coupled with labor costs, these expenses consume 50%-75% of total sales. Because of the impact food cost makes on an operation, food cost is one of the first things we examine at a troubled property. Beyond the bottom line, food cost also reflects an operation’s food quality, value provided to the customer, and management skill level.

CALCULATING YOUR RESTAURANT’S FOOD COST

TIME FRAME:
Start Date_______End Date_______

FOOD SALES (including coffee, juices and non-alcoholic beverages): A._______

COST OF FOOD SALES:
Food Purchases (including non-alcoholic beverages):_______
Inventory Adjustment:
Beginning Inventory_______
Ending Inventory_______
Difference_______B._______

Food Cost = Cost of Food Sales / Food Sales

FOOD COST =
Line B / Line A =_______=_______%

Michael Monnot

941.518.7138
Mike@InfinityBusinessBrokers.com