How to Calculate Restaurant Costing

Calculating the cost of running a restaurant is an important part of running a successful business. Knowing the cost of ingredients, labor, and overhead can help you make informed decisions about pricing and menu items. Here are some tips to help you calculate restaurant costing:

Ingredients

• Calculate the cost of each ingredient. This includes the cost of the food itself, as well as any packaging or shipping costs.
• Factor in the cost of preparation. This includes the cost of labor, as well as any equipment or supplies needed to prepare the food.
• Consider the cost of waste. This includes any food that is thrown away due to spoilage or other reasons.

Labor

• Calculate the cost of labor. This includes wages, benefits, and any other costs associated with hiring and training employees.
• Factor in the cost of overtime. This includes any additional wages paid to employees who work extra hours.
• Consider the cost of training. This includes any costs associated with training new employees or providing continuing education for existing employees.

Overhead

• Calculate the cost of rent. This includes the cost of the space itself, as well as any additional costs associated with the lease.
• Factor in the cost of utilities. This includes electricity, water, and any other utilities needed to run the restaurant.
• Consider the cost of insurance. This includes any insurance needed to protect the business and its employees.

By taking the time to calculate the cost of running a restaurant, you can make informed decisions about pricing and menu items. This will help ensure that your restaurant is profitable and successful.