Food Costs Formula: How to Calculate Restaurant Food Cost Percentage (Updated)
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3 жыл бұрын►WATCH THIS VIDEO ON OUR WEBSITE:
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Everything you’ve ever wanted to know about food cost - FAQs about food cost, the formulas to use, and my ridiculously simple way of calculating food cost!
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Hi, I am Ryan Gromfin. Welcome to my KZfaq channel, The Restaurant Boss. Here you will get tips on how you can increase restaurant profits, control restaurant costs, improve your restaurant marketing, lower food costs, find more time in your day, general business operations, and more.
I want you to have the restaurant of your dreams, so I post weekly training tips for restaurants and bars of all kinds - fast food, QSR, dine-in, fine dining, food trucks, sports bars, and more. Tips range from controlling food cost and lowering labor costs to restaurant specific marketing and management.
Please check it out and grab the free tools on my website.
If you enjoy the channel make sure you hit subscribe or click the bell so that you are always notified when I release a new video.
@Therestaurantboss 3 жыл бұрын
How do you calculate food cost in your restaurant? What about plate cost?
@MichelLajeunesse 2 жыл бұрын
As a culinary arts student preparing to start a Mobile Food Service business (food truck) your resources are an asset to a new entrepreneur. Thank you for sharing your expertise.
@Therestaurantboss 2 жыл бұрын
Wow - thank you so much! Have you grabbed a copy of my free book yet? It will help you from start to finish! www.TheRestaurantBoss.com
@kerolesrafaat991 Жыл бұрын
@@Therestaurantboss ❤
@mikecoates4470 8 ай бұрын
@@Therestaurantboss)
@steveazulay8233 Ай бұрын
How was your culinary experience?
@BlankScreenSessions 3 жыл бұрын
As a chef, it's always nice to hear a fresh take on food costs.. thanks Ryan!
@Therestaurantboss 3 жыл бұрын
As a recovering chef (LOL!), I truly appreciate this.
@chr0nos0502 2 жыл бұрын
Hey there! I am using these calculations for a long time and it's helping me to help my clients make more money. About pro-s and cons between COGS and Rolling COGS. What I like to do is a weekly inventory on all beverage items, because usually here we have a lot of spillage, theft or employees drinking, inviting their friends etc. So I do weekly inventory and calculate a more accurate Foodcost% on all the beverages and in the kitchen I also use rolling COGS, and periodically do inventories just to compare usage to sales in order for me to see if I have to adjust recipes or not. I also own (I think) the best solution for doing inventory fast an all the beverages :) Not looking to advertise here so I am not gonna leave a link, but if anyone is interested just leave a comment. Thanks and great job doing these videos.
@Marylandgirl55 6 ай бұрын
im interested
@altafmukadam7686 Жыл бұрын
Ryan you are smart & clever 👍🏻
@tinuvarghese3942 3 жыл бұрын
I learnt to calculate food cost with the help of your previous F.C video...
@Therestaurantboss 3 жыл бұрын
Awesome!!!
@joseg5511 7 ай бұрын
Great Stuff 💯
@BlackBoardBarBQ Жыл бұрын
Considering I have been obsessing over food costs at the request of our investor this video almost had me in tears. HAHA not sure it was tears of relief or sadness because I have wasted so much time and energy.
@kaweesafrancis743 Жыл бұрын
Bless you Ryan
@kikayforever4259 Жыл бұрын
Im accountant for the food and beverage, i feel very hapy exactly same computation the food cost i made. 😊
@Therestaurantboss 11 ай бұрын
Good job! Not many bookkeepers/accountants get things right for restaurants! -Dawn, Team TRB
@courageous_tin3882 2 жыл бұрын
I am new of this position. From a Restaurant Manager to a Food and Beverage Supervisor. During my tenure of being a restaurant manager, didn't try food costing cause our items by pack. Now in my position food costing is necessary. Want to hear some advice. Thank you.
@Therestaurantboss 2 жыл бұрын
I hope this was helpful!
@courageous_tin3882 2 жыл бұрын
Yeah! Very helpful for me. Thanks!
@DarthissGameplays 3 жыл бұрын
How should I calculate my plate cost? Should I only account for food, or should I add rent, labor, etc??
@Therestaurantboss 3 жыл бұрын
Only food. This FAQ answer might help: clickbacon.com/restaurant-food-cost/
@aliciablucher2023 Жыл бұрын
Thank you heaps
@Therestaurantboss Жыл бұрын
You're so welcome Alicia! -Dawn, Team TRB
@johnnysaby Жыл бұрын
Good day Sir,How to cost and price 4 course set menu and seafood buffet with beverage included and without
@Therestaurantboss Жыл бұрын
Your food cost is always going to be the usage divided by the sales. You'll have to estimate the amount of food that each person will each, on average, and base your costs on that estimation. -Dawn, Team TRB
@lifeinmotion4192 3 жыл бұрын
I was legit just wondering how TRB does plate cost! 👍 I'm beginning to think TRB is listening to my thoughts 🤔
@Therestaurantboss 3 жыл бұрын
LOLOLOLOLOL!!!!!
@massi8231 Жыл бұрын
Is click bacon available in europe?if not please suggest the leader s tool for manager in 2022 ? thanks boss
@Therestaurantboss Жыл бұрын
Absolutely! We have people all over the world using it :) www.clickbaon.com Dawn - Team TRB
@robertmohler7426 3 жыл бұрын
I suppose you also don’t think you should do monthly inventory or have pars?
@Therestaurantboss 3 жыл бұрын
Hey Robert! I definitely have my opinions on inventory as you can tell from the video. I explain more in this video...check it out: therestaurantboss.com/do-not-teach-restaurant-inventory/ Then let me know what you think....
@BDonOne Ай бұрын
Hi, with inventory based COGS, does the amount you order matter? As long as it’s counted it shouldn’t right?
@kevinbarrett8203 23 күн бұрын
It depends. Things like meat, can goods, produce etc… your fine cause you will eventually sell it. Things like Togo supplies, cleaning supplies, chemicals etc… once bought you won’t make money off that. So keep you operating supply’s purchases low as possible. Especially chemicals.
@bitchdontplaywitme4798 2 жыл бұрын
How do I calculate food cost using inventory if I purchase food everyday should I just calculate for the whole week/month?
@Therestaurantboss 2 жыл бұрын
I think this video will be helpful: kzfaq.info/get/bejne/ZtCWqsqGstuXo6M.html
@UNIQUEINDIANofficial 2 жыл бұрын
While calculating food cost do we need to include the cost of paper items used in packing the food ?
@Therestaurantboss 2 жыл бұрын
Depends on how they are used? If you only offer delivery/to-go yes. If not, then it's a direct operating expense.
@courageous_tin3882 2 жыл бұрын
Any advice whom I call to make my spreed sheet of food cost with automatic formula. I have no idea.
@Therestaurantboss 2 жыл бұрын
Hi Christina! We have software that helps you with that. It's super simple and gives you everything you need in a financial dashboard. Check it out: www.clickBACON.com
@courageous_tin3882 2 жыл бұрын
Thank you so much!
@datrimray1920 3 ай бұрын
SO food cost and plate cost are two different things? But I do see them overlap at some point. Like for example to calculate the both, you always take the cost, divide it by sales or sales price x 100. Only difference I see is that food cost includes time period whereas plate cost has no time duration involved. It only sees the cost required to prepare a plate of food.
@Therestaurantboss 3 ай бұрын
Yep, you've got it - they're different but it's a big difference. Food cost is across your restaurant over a period of time and plate cost is just what it costs you to make that specific plate of food. -Dawn, Team TRB
@datrimray1920 3 ай бұрын
@@Therestaurantboss Understood thank you so much for explaining!
@charleswilson4080 Жыл бұрын
Interesting
@kabsahhaswiah4307 2 жыл бұрын
Please How could we reach you for consultation
@Therestaurantboss 2 жыл бұрын
Hi! All of the details are here: therestaurantboss.com/work-with-me/
@meatmissle1459 2 жыл бұрын
How did you determine the plate cost at $10?
@Therestaurantboss Жыл бұрын
The $10 just represents what you charge for the plate of food. In our example, Ryan chose $10 as the cost of purchasing a burger. If the burger costs you $2.50 to make, then you will divide $2.50 by $10 to get your plate cost. We have all the basic financial formulas available inside our free Restaurant Owners Toolkit. It also has a ton of other resources inside. Grab it here: www.therestaurantboss.com/toolkit -Dawn, Team TRB
@Chris-eu2ls 5 ай бұрын
@@TherestaurantbossHow do you figure out the cost of the burger? I’m having trouble with this part.
@1500RAJU 3 ай бұрын
I have a very large restaurant in Myanmar. I want to make it run systematically. Could you help me with that ?
@Therestaurantboss 3 ай бұрын
We have tons of resources to get you started. Check out the free toolkit we have on the site: www.therestaurantboss.com/toolkit The next step for more help would be our TRB Membership. It's all our training programs plus 2 group calls with Ryan every month. It also includes all past trainings over the past 2.5 years: www.therestaurantboss.com/membership To move the fastest, you can schedule a one-on-one with Ryan to get tips, suggestions, coaching and shortcuts; www.therestaurantboss.com/coaching Hope that helps! -Dawn, Team TRB
@massi8231 Жыл бұрын
can i easily copy all my invoices directly to clik bacon tool??
@Therestaurantboss Жыл бұрын
Absolutely. As long as your POS system can provide you with your reports, we can map them for you so you can drag and drop your files. Dawn - Team TRB
@manjularuhunage5979 Жыл бұрын
this moment very difficult do everything because is because
@olespanishcuisine2355 10 ай бұрын
what is the cost of my frying oil as an ingredient, how to calculate it?
@Grant849 10 ай бұрын
Just write that off as supplies or food supplies. You'll pull your hair out trying to figure out how much food frying oil yields
@Therestaurantboss 9 ай бұрын
This ☝️ -Dawn, Team TRB
@DetraDDavis 3 жыл бұрын
$2,500 / $10,000 = .25 x 100 or 25%. Does this mean you spent $2,500.00 to produce the food? or after food cost you had $7,500.00 left?
@Therestaurantboss 3 жыл бұрын
Hi Detra! That means you spent $2,500 on the items to make the food. It doesn't equate to $7,500 in the bank because there are also labor costs, direct operating expenses, etc. that factor your bottom line.
@desireesteptoe628 Ай бұрын
Things are affected into my food cost that the kitchen isn’t making profit off of like nonalcoholic beverages, paper goods for the bar pics Bev. Naps bar, fruit bar simple, syrups, coffee tea iced tea is all purchased through food cost also toiletries These are things my kitchen sees no profit off of we run brunch every day and purchase orange juice and apple juice and other things and that profit is not seen in my food cost Please explain to me how messed up this is. Your response is going to mean the world to me because the owners don’t understand that these are not things that should be coming out of food cost your response will be something that I bring up in my meeting. They are giving me hell about food cost and a good 15% of what I buy is for the bar and I see no profit so my food cost is high.
@hrhOSports Жыл бұрын
My question how to calculate food cost for a plate cost?
@Therestaurantboss Жыл бұрын
Your plate cost is the same formula, just smaller. What the plate costs you to make divided by what you sell it for x 100. EG If it costs you $2.50 to make and you sell it for $10.00: 2.50 ÷ 10.00 x 100 = 25%. - Dawn, Team TRB
@steveazulay8233 Ай бұрын
COGS
@baxterismyyoutubename5077 2 ай бұрын
Ooh that was u 7 years ago or now 9 years ago, i just watch your 7 years ago not realising it was you... I thought u r a different person because u change alot in appearance.. 😅
@1001zaki Жыл бұрын
Hey Ryan I never knew that you can act man😅😅. Thank God you didnt get in to the acting field otherwise Tom cruise and brad pit would've got no opportunities man..
@Therestaurantboss Жыл бұрын
LOL an award winning performance! -Dawn, Team TRB
@1001zaki Жыл бұрын
@@Therestaurantboss Ryan you should come to Dubai .
@Justmechillin07 10 ай бұрын
Yea I don’t agree with no inventory
@Therestaurantboss 9 ай бұрын
Just curious, but why not? -Dawn, Team TRB
@Justmechillin07 9 ай бұрын
@@Therestaurantboss no way to control cogs especially non food items from paper goods etc. Inventory can also have managers on top of their walk in management
@nickrulli7378 Жыл бұрын
So if you talking price of that burger. Break down how many slices of tomato, red onion, how much lettuce, 4 pickle slice, and bun? All that goes into the food cost?
@Therestaurantboss Жыл бұрын
It goes into the plate cost, yes. Remember, food cost is across your entire restaurant. Dawn - Team TRB
@MNAIK887 Жыл бұрын
U talking too much come on topic about food cost
@Therestaurantboss 11 ай бұрын
You can always advance the free videos and get straight to the part you're looking for. -Dawn, Team TRB
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