Food Costs Formula: How to Calculate Restaurant Food Cost Percentage
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- čas přidán 28. 01. 2014
- What is the food cost formula and how can you use it to calculate your restaurant's food cost percentage. I will explain everything you need to know about food costing in this video.
As a restaurant owner, manager, operator, or chef, you have to know how to calculate your food cost so you can lower expenses and increase your profits.
DOWNLOAD THE FOOD COST GUIDE:
therestaurantboss.com/restaur...
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At The Restaurant Boss, I post weekly training tips for restaurants and bars. Tips range from food and labor cost to restaurant-specific marketing and management. I welcome you to check it out and sign up for my FREE video training series.
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Please be sure to like this video and leave your comments or questions below as well as share this video with your friends, co-workers and other restaurant owners, managers and operators. I promise to respond to every comment or question!
Thank you,
Ryan Gromfin
The Restaurant Boss
TheRestaurantBoss.com
great info I to am in the food business selling online but costs are a factor we consider as well
I'm so glad I found your channel! Having no experience or training in starting food businesses, your videos are an information goldmine so thank you so much for making them.
Glad they are helpful! Be sure to take a look at my website as well - lots of free resources and private coaching options.
@@Therestaurantboss has been in a long long and long term
Thanks a lot
I really needed this information, thank you for your help with this lesson.
Great job, Boss! I just subscribed. So many restaurants fail because they don't this exact info you have on your channel! I hope everyone is going to survive these hard times and get back to normal business! My people ( the waiters ) suffer as well as the restaurant owners right now! We are all hoping for a quick recovery! Keep up the good job!
Thank you and I wish you all the best in your restaurant's road to recovery.
very helpful...I'm so intrigued!
Contemplating opening a small restaurant in the near future; my life long dream. Really appreciate the information!
I am thinking about a new type of restaurants: eating-spots
in eating-spots, food keeps changing, chefs also rotate
this is opposed to current restaurants,
thanks to this rotation of food and chefs, eating-spots are more powerful than restaurants,
along with that, there is an app,
people vote for the food that will be cooked in the next days
menu is influenced by the live input of the people via an app
Been operating a restaurant for year now, but i never followed any of this, now that i have this info, i am trying to put the guidelines in place, thanks alot for this
So glad the video was helpful! If you need more help setting up systems for your restaurant, I recommend checking out my SCALE program at scalemyrestaurant.com.
Thank you for this. Its hard to run a place but glad to see there's help
This presentation is very very much informative, keep it up each one teach one.
That was cool and important info for further stages of Restaurant Profession and Business. Wish you all the very best And Thank you so much.
This information is golden... Thank you!!!
So glad you enjoyed it!................
Great job man. One thing, is it smart that Im 19 and I already knew how to control inventory and calculate usage, cost and sales at such age.. Not really, where I live; Saudi Arabia. I worked at McDonald's since I was 17 until recently , I followed my vision and set a goal, opened a very special food truck .. The speciality within this food-truck you can say is that because of lack of food trucks in my home place. I gained $22.776 for my first month. All of this is really a big thanks which goes sincerely to McDonalds. It taught me everything. Ive been a part of this empire a great time, made hard to be sure and didn't waste a second on trying to find what customers need , their demands , and lastly fix them with a big smile on their face. Cannot mention all the valuable things I gained from the great business.. I really hope from everyone to widen their perspective and see the valuable secrets and reveal it , a very great chance you could be a great business man one day.. good luck to everyone!
thank you....I'm starting a small restaurant in 2016. I am learning as I go so this is excellent advice for me.
My Pleasure...
Ajmal Millar how did it go mate?? i hope business is doing great, best wishes.
Ajmal Millar hows it going bro
hows your restaurant bro?
How is the restaurant going?
I've watched a few of these types of video's but by far this is my favorite. Thanks so much for the precise information.
+firenicez you are very welcome.
Thank you for the great information. I know how important it is to have a good foundation and you tackle every topic in a very objective way.
Grande! Ryan, you really seem to know the hospitality industry. When I arrived in Australia, I was shocked by the silly mistakes of the Restaurant and Cafe owners.
Years and years of experience PLUS years and years of study. I will also say some common sense makes a huge difference.
I really love how you break it down...Thumbs Up!!!!!!
Awesome stuff Ryan Gromfin!
You do speak like a Boss and your formulas and style is simple awesome, love the fact you are straight to the point and no music!
Thank you so much! Food costing can be made too complicated. I definitely like getting to the point and making it easier. Glad this video helped you.
Really clear video, thanks ! Any one regarding the costing of coffee breaks ?
Hi Ryan, Great video, as always. If a restaurant sells packaged / bottled salad dressing, do you choose to include the cost of the bottles and labels in COGS as a category like, COGS - Packaging or do you put the packaging costs in the same account as, e.g., straws, to-go bags, and paper napkins? thanks, and happy 4th!
Glad i seen this video , i had noticed one thing in indian restaurant that they had vast menu card but the food items in main course are more the same , but pricing varies as they put a tag on a dish like "special nonveg or Paneer tikka , butter chicken masala etc.
In reality they put same vegetable stock and gravy in all dishes but charge higher for some dishes despite they taste the same.
Here is the importance of food costs:
- It determines your probability
- Lower Food Cost = Higher Profits
- Properly Price Your Menu
- Optimize your menu
- It's not what you spent on food
Thank you for sharing this timeless, valuable information and clarity of the formula. It is indeed helpful for every restaurant owner. Kudos to you! 🙌
Thank you for taking the time to comment!
Thank you so much !! My parents have a restaurant and they’d actually teach me but i just feel like i need to learn it myself and thankfully i found your channel :))
Awesome! You should also check out my free toolkit that's filled with tons of free worksheets, templates, guides, etc. www.therestaurantboss.com/toolkit
Happy to watch this video i ahve been having alot of issues on my food cost lately I WORK FOR MOVENPICK ICE CREAM ABUJA NIGERIA
Ryan, I'm opening a Kosher Deli and HealthFood Market. Could I use the generic COG calculation worksheet to flesh out my health food market sales percentages? I understand preparation costs are factored in COG formulation not shelved products.
Thanks for the very helpful, easy to understand overview.
I own a growing food truck biz. Just came across your vids today. Very helpful/inspiring knowledge! Thanks!
Restaurant Boss,
My students really enjoyed your teaching style and are making their journey in culinary arts much easier.
Thanks.
I love to read this and happy to be a virtual mentor through my videos.
Every F&B cost controller must watch! highly recommended. THUMBS UP!!
Thank you so much!!!
Stoked to find your youtube. We are just starting to gather data on starting up a restaurant/retail combination location similar to MOX Boarding House in Bellevue, WA, and your videos are extremely helpful!
So glad that we are able to help! Good luck and let us know how it goes.
I'm a young restaurant owner. Thank you so much for these videos!
You are very welcome! Thank you for watching and I hope they are helpful.
So clear for all! Respect!
Very helpful to a chef trying to learn the basics
Very helpful video thank you..
This is great dude, I'm writing this all down.
Hey Thanks Roland Sylvain , check out the full video series at therestaurantboss.com for a way more detailed look at restaurant financials and costing formulas.
great info
hey I'm planning to start a takeaway only restaurant, any tips about that in terms of cost, mistakes to avoid etc. would love to see a video about that.
and also great work there, you're really helping a lot of newbies, thumbs up!
Excellent explanation of equations. Learning so much. Downloading the COG average calculation workbook now. Thanks
Your welcome! Hope it's helpful.
I was wondering if you had any training video's over food cost/sales available to order for training kitchen Management and Staff
hi Ryan.. to calculate my beginning inventory for my restaurant food cost... do I have to calculate the the amount of fresh vegetable and fruits?
Great video as usual, Ryan. I did not see the guide mentioned in the video on your website however. It may be b/c it is now several years after the vid was created, so no worries.
Hey Christopher! You can find the document here: therestaurantboss.com/restaurant-food-cost-target/
Simple, clear and amazing explanation!!! Thank you so much.
Glad you liked it
Thanks alot for the detailed video Sir. You are great and you made it so simple to understand. I have also subscribed your Home Page.Hope to get more new learning from you this coming days. Thank you very much again
Very helpful!
thanks for your information . i am so happy to how you explain about food cost,
a.k.raj
Hi, how would you set you COGS goal for different items? Would it make sense to set an absolute margin target instead of a COGS percentage?
You are amazing and a blessing to the industry
Wow - thank you so much!
Damn you share very valuable information you deserve more subs!! thank you for your great work keep it up!!
+luis villaescuza , Thank you, happy to help!
Steve Vd
C
I am thinking about a new type of restaurants: eating-spots
in eating-spots, food keeps changing, chefs also rotate
this is opposed to current restaurants,
thanks to this rotation of food and chefs, eating-spots are more powerful than restaurants,
along with that, there is an app,
people vote for the food that will be cooked in the next days
menu is influenced by the live input of the people via an app
This was great information thank you Mr. Boss!
Thank you - glad you enjoyed the video!
Heyyyy….thanks, your info was very informative! Question: Can I use this formula for Private Chef Services and Event Catering, also??
Its all the same.
Hi Ryan, what would you do if you start a new restaurant and you have an existing restaurant but you want to transfer some of the stock from the existing place to the new place? where would you add that stock value to your COGS calculation? with purchases?
Thank you so much for posting these videos! I've been wanting to start a restaurant for a while now, and only now have a concept that I really like; but I never took any business classes or anything and have no idea how to bring my vision to reality. I just watched a couple of your videos, and I think this will be perfect to get me started! By the way, Cannabis is about to be legalized where I live, and my concept is a cannabis bar (edibles), that offers regular food and DIY kits. (inspired by DIY Bar in Portland.) If anyone has specific advice for me, please let me know!
Glad the videos were helpful and good luck in your adventure.
Take precautions calculating taxes and legal regulations most cannabis business don’t grow profitable because of how much is taken out
Very happy to have this channel. I my case i serve different menus daily so how do would i value my inventory left from the previous month to make it the opening stock for the new month
We're happy to have you here! The fact that you serve different menus each day doesn't change anything. Ryan doesn't teach inventory for most operators but it's as simple as establishing a value for everything at the beginning of the month and counting it at the end of the month. The ending inventory of one month is the beginning inventory for your next month. Hope that helps! -Dawn, Team TRB
Really good videos man, thanks a lot, im definitely going to try your teachings. Keep up the good work!
Can you help number for whatsaup
I am thinking about a new type of restaurants: eating-spots
in eating-spots, food keeps changing, chefs also rotate
this is opposed to current restaurants,
thanks to this rotation of food and chefs, eating-spots are more powerful than restaurants,
along with that, there is an app,
people vote for the food that will be cooked in the next days
menu is influenced by the live input of the people via an app
Thanks for the great videos. I looked for the Download button as presented in the video. Can't find it. Where can I get this download?
Thanks
There is a link in the text description that takes you to my website. But here you go...therestaurantboss.com/
Thanks a lot.. it was great information and learning... put very simply. God bless
Thank you.
Do I do a stocktake to determine beginning inventory if just opening?
Hey there like your shows question for you how do you determine a food cost budget ? Per period
Thank you very much, excellent information.
New area for me as I’ve taken over a 15-acre recreation park that has a snack/coffee bar; this has been very helpful in many ways. Introducing terminology is a good starting place and will be looking at your website. Mahalo Nui Loa from Kauai
So glad it's been helpful and good luck! I have coaching options available if you get into a real pickle. therestaurantboss.com/hire-me
I am now a huge fan! This and all of your videos are so very helpful Ryan. Thank you for sharing!
Marty Embry My pleasure, thanks for the kind words.
You simplified it so well! Thank you!
Glad the video was helpful and helped to make the numbers make more sense.
thanks bud,,,im in process of adapting the formula you displayed.
lets see if that works
tarun yadav Sorry for the delayed response, how are things going with you implementation?
thank you sir .great information,this will be very helpful to a lot of people ,doing their own business,thanks again
You're welcome!
thanks for the Great info. I am currently in the process of starting a food truck. this process should work the same right?
Absolutely!
Thanks for all your advise and mentorship, and looking forward in using Click bacon as part of our startup restaurant in Tasmania, Australia
We have lots of users in Australia. Let me know if I can help.
Great video! Exactly what I was looking for. Heading over to your website now. Thanks!
Thanks so much for the comment
Question... the sba.gov website describes COGS as the cost of materials + labor
Should we be considering labor and all materials (disposable) used to serve each plate
Hey! New KM. Do you count Togo containers/utensils as part of food cost?
Excellent high quality info explained in simple terms well done great vidio
Wow amazing teaching method. Every thing is Crystal clear. Good work Mr boss
Thanks a million
-Dawn, Team TRB
you're the best..
thanks for the interesting video.. thumbs up..
So glad you enjoyed it!
sir i was f & B supervisor and now i got a job as a assistant restaurant manager in a restaurant chain can u give me some ideas how to work as assistant manager.
edlyn gallardo
rajput wht did u study whts ur qualification sir
I am glad to hear that. But im a newbie here so i dont know how. Sorry for that
Thank you.
Have you heard of the Prima Web inventory system? By the way I just subscribed. Very informative videos I have learned a lot.
Man I'm gonna open a fast casual restaurant in nyc with your training. This better not be bs.
Hey Igor, sorry for the delayed response. I think you can see I am not full of BS dude.
opening stock + net purchases - closing stock will give you food cost. Then food cost divided by monthly sale & multiply by 100 will give you food cost percentage. Thank you soo much.
+Andrew Gray, I am so glad that this helped! Cheers!
Can you please provide me with the link to the video that explains the cost breakdown of the 2.00$.Thanks.
I am a recent graduate from culinary school and I am planning on opening my own restaurant in the near future. I just wanted to say thank you for this video and I will be visiting your site.
So glad you enjoyed the video... let me know if I can help you with anything regarding your restaurant!
I am thinking about a new type of restaurants: eating-spots
in eating-spots, food keeps changing, chefs also rotate
this is opposed to current restaurants,
thanks to this rotation of food and chefs, eating-spots are more powerful than restaurants,
along with that, there is an app,
people vote for the food that will be cooked in the next days
menu is influenced by the live input of the people via an app
Hey Ryan
Thank you for the video... Sweet and to the point. Keep up the good videos.
God Bless You and your family
Sorry Best Regards
John Barragan
You're welcome!
I watched this again and I want to give it another thumbs up!
AWESOME - thank you!
Thank you so much for making this knowledge very user friendly.
You're very welcome!
thanks I am thugburgers bcoz u man. ur part of my journey., ive learn a lot from ur page. hope to meet u some day or if have time to visit the philippines
I am thinking about a new type of restaurants: eating-spots
in eating-spots, food keeps changing, chefs also rotate
this is opposed to current restaurants,
thanks to this rotation of food and chefs, eating-spots are more powerful than restaurants,
along with that, there is an app,
people vote for the food that will be cooked in the next days
menu is influenced by the live input of the people via an app
Thank you for making this.
You are welcome!
thank you very much sharing your idea... sir can you tell me how we should setup bar and restraunt.
Hi! is there a specific question that you have? It is too hard to coach somebody though the entire process via CZcams. I can answer one question, but other than that, I offer coaching services so we can tailor everything to your business. therestaurantboss.com/hire-me
Valuable information. Thank you very much for your knowledge.
Thank you!
Hy i m shelly i dont know how to make recipe llate cost template from starting plz if you can help me i really thnkfl to uu
Thank you so much for being kind and so clear , after few days I have an interview for restaurant manager ( currently I am working as supervisor ) please let me know what they want to know from me . Thank you
Ask them what they want you to know.
Sir,in your website do you have detailed analysis of f&b costing.
Thank you for this great video!!
Linda Ramos you are so very welcome, hope it's helpful for you!
thanks a lot sir could you share for us that what is the main part in restuarant business beginning part
1-business plan
2-financing
3-decoration
4-market
thank you for sharing. may i know about how to track the raw materials such as vegetables and condiments? it is because these items do not come with packaging like beers and wine. thanks
Just subbed I'm a little green to food management. I'm going to be taking a new role and I subscribed to your channel based how informative this video was thank you and can't wait to flood you with questions like you said. I will also be checking out your website here in the very near future. Thank you
Thanks for the info. Just subscribed.
We have new software. I'm having difficulty finding why my seafood shrimp is about 15 lbs off. I have gone thru the p-mix on how much we sold versus purchase. And went line for line on what the servers rung up. Need help on better tracking this item or suggestions.
it was so clear... thanks a lot...
thanks for the info
Hey am thinking of starting of chinese restro at bansbari(kathmamdu)nepal
Would it be perfct locationand restro too?
Hello.
For example, if i open a restaurant in January and my total delivery for food cost me $1000, is right if i say that my inventory is 1000 and my purchases is 1000?
Tks
Do you have a video breaking down plate cost? How do you determine yields for each ingredient?
I don't get into that specifically. You just weigh the ingredient, then cook it or trim it and weight it again. Find out the loss, add that to the purchase cost. If you lost 10% of the weight, then add 10% to the purchase cost.
Dude, just thanks 💪🏻
Ha! You're welcome!