How to Calculate Food Cost Percentage (Formula & Tips)
Next to labour costs and rent, food costs are the highest expense for every restaurant. The average restaurant food cost percentage is between 28% and 32% of total food sales, with peaks up to 45%. In the restaurant industry, profit margins are thinner than a stroopwafel. So you need to know how to calculate and […]
Restaurant Food Waste Logs: Reduce Costs and Boost Sustainability
Food waste is as bad for the environment as it is for your profits. Every scrap of food that goes in the bin represents a missed opportunity to make money. And the amount of food wasted in the restaurant industry is also a disaster for the planet. Franco Prontera of Too Good To Go revealed […]
7 Ways to Reduce Food Cost Without Compromising Quality
On average, a restaurant’s food costs amount to around a third of total revenue. With ingredient costs fluctuating constantly, controlling spending is one of the toughest challenges facing operators. To maintain your reputation and serve the quality food your customers expect, you need to find ways to reduce costs without sacrificing food quality. The good […]
7 Causes for Variance Between Actual and Ideal Food Cost
Food cost control is crucial for profitability in hospitality. You need to know how to calculate food cost accurately. If the actual food cost in your restaurant or hotel is higher than the ideal food cost (aka theoretical or target food cost), the reason for this can always be traced back to one or more of […]
Restaurant COGS: How to Calculate, Control & Boost Profitability
Restaurateurs risk losing money on every sale when they don’t know their restaurant’s Cost of Goods Sold (COGS). Effective cost management starts with understanding your COGS. This knowledge leads to better business decisions and higher profit margins. How? By controlling inventory and kitchen operations, you cut food waste and costs. Read on to discover: What […]
15 Powerful Ways To Reduce Food Waste In Multi-Site Restaurants
Every report on food waste is a jaw-dropper. Food waste is a monumental problem with massive consequences. An estimated 32% of all food produced worldwide is lost or wasted from farm to fork (some reports even say between 40-50%). This inefficiency has a gigantic economic, social and environmental impact. Let’s focus on the economy for […]
Restaurant Menu Costing — How to Automate Recipe Calculations & Eliminate Low-Margin Items
For restaurant operators and F&B operations managers, the devil really is in the details. It’s an ironclad rule in the hospitality industry and menu costing is no exception. The most important of those details is your cost baseline. It’s essential for everything you do, from menu pricing to closing the gap between theoretical and actual […]
24 Cost-Reducing Tips That Will Make Your Cloud Kitchen Profitable Within a Year
You’re running (or thinking of running) a cloud kitchen, and you’re here trying to figure out how to keep your costs down? (Or a ghost kitchen. Errm, virtual kitchen? Or maybe a dark kitchen? For this post, let’s just all agree that we can use these terms interchangeably, or we won’t get anything done.) Anyway, […]
Restaurant Food Waste Management — How Smart Operators Drive Down Food Waste & Costs
According to a ReFED report from 2018, in the US, the foodservice industry generates around 11.4 million tonnes of restaurant food waste per year, which translates to $25 billion. In the UK, restaurant food waste clocks in at about one million tonnes (that’s £682 million). Both numbers are so mind-numbingly huge that they almost mean […]
