How to Calculate Food Cost? Formulas for Chefs and F&B managers
Calculate food cost and boost profit; it is the first lesson anyone working in the restaurant business learns. And rightly so. The average restaurant food cost percentage is between 28% and 32% of total food sales, with peaks up to 45%. That is enormous. Nothing worse than working hard and not making any money, right? […]
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, […]
Ultimate Guide to Restaurant Inventory Management [How Multi-Unit Restaurants Keep Food Cost Variance Close to Zero]
While food costs can’t be eliminated — in the same way, you can’t fire your staff to eliminate payroll expenses— solid restaurant inventory management will prevent them from spiralling out of control. After reading this guide you’ll have the tools you need to set up bulletproof protocols, keep track of F&B purchases, monitor stocklevels and […]
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 […]
9 Ways to Reduce Food Cost Without Giving in on Quality
In the hospitality industry food costs averages between a whopping 28%-35% of turnover. Reducing food costs is serious business. It effects your bottom line big time. Let’s face it, the basic equation of check average divided by food purchases simple doesn’t cut it anymore in the highly competitive restaurant industry. You need to know how […]
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 […]
