Understanding Food Cost

Food cost is an important factor in the success of any operation. It is the total cost of all the ingredients used to make a dish, divided by the total number of servings. Knowing your food cost is essential for understanding the profitability of your operation.

Calculating Food Cost

Calculating food cost is relatively simple. To begin, you will need to know the cost of each ingredient used in a dish. Once you have this information, you can calculate the total cost of the dish by adding up the cost of each ingredient. Finally, divide the total cost of the dish by the number of servings to get the food cost.

Factors Affecting Food Cost

There are several factors that can affect the food cost of an operation. These include:

• Portion size: The size of the portion can have a significant impact on the food cost. Larger portions will increase the cost of the dish.
• Ingredients: The cost of ingredients can vary significantly depending on the season and the availability of the product.
• Waste: Food waste can have a significant impact on the food cost. Reducing waste can help to keep food costs down.

Conclusion

Food cost is an important factor in the success of any operation. Knowing your food cost is essential for understanding the profitability of your operation. Calculating food cost is relatively simple and there are several factors that can affect the food cost of an operation. By understanding these factors and taking steps to reduce waste, you can help to keep your food cost under control.