Calculating Food Cost Percentage

Calculating food cost percentage is an important part of running a successful business. Knowing your food cost percentage can help you make informed decisions about pricing, menu items, and more. Here are some tips for calculating your food cost percentage:

• Gather your data: Gather all of your food costs for a given period of time. This includes the cost of ingredients, labor, and other related costs.
• Calculate your total food cost: Add up all of your food costs for the given period of time.
• Calculate your total sales: Add up all of your sales for the given period of time.
• Calculate your food cost percentage: Divide your total food cost by your total sales and multiply by 100 to get your food cost percentage.

Tips for Lowering Food Cost Percentage

Once you have calculated your food cost percentage, you can start to make changes to lower it. Here are some tips for lowering your food cost percentage:

• Reduce waste: Reduce food waste by using proper storage techniques and portion control.
• Negotiate with suppliers: Negotiate with suppliers to get the best prices on ingredients.
• Review menu items: Review menu items to make sure they are priced correctly and are profitable.
• Track costs: Track costs regularly to make sure you are staying on budget.