Calculating Food Cost Percentage

Food cost percentage is an important metric for any business in the food industry. It is a measure of the cost of the food used in relation to the total sales of the business. Calculating food cost percentage can help you understand the profitability of your business and make informed decisions about pricing and menu items.

Steps to Calculate Food Cost Percentage

• Step 1: Calculate the total cost of food used in a given period of time.
• Step 2: Calculate the total sales for the same period of time.
• Step 3: Divide the total cost of food by the total sales.
• Step 4: Multiply the result by 100 to get the food cost percentage.

Tips for Calculating Food Cost Percentage

• Keep track of all food purchases and sales to ensure accuracy.
• Calculate food cost percentage on a regular basis to monitor changes in your business.
• Compare your food cost percentage to industry standards to ensure you are competitive.

Food cost percentage is an important metric for any business in the food industry. By following the steps outlined above and using the tips provided, you can easily calculate your food cost percentage and use it to make informed decisions about pricing and menu items.