Food Costs Formula: How to Calculate Restaurant Food Cost Percentage

Рет қаралды 1,061,291

10 жыл бұрын

What is the food cost formula and how can you use it to calculate your restaurant's food cost percentage. I will explain everything you need to know about food costing in this video.
As a restaurant owner, manager, operator, or chef, you have to know how to calculate your food cost so you can lower expenses and increase your profits.
DOWNLOAD THE FOOD COST GUIDE:
therestaurantboss.com/restaur...
LEARN MORE ABOUT BACON:
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At The Restaurant Boss, I post weekly training tips for restaurants and bars. Tips range from food and labor cost to restaurant-specific marketing and management. I welcome you to check it out and sign up for my FREE video training series.

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Please be sure to like this video and leave your comments or questions below as well as share this video with your friends, co-workers and other restaurant owners, managers and operators. I promise to respond to every comment or question!
Thank you,
Ryan Gromfin
The Restaurant Boss
TheRestaurantBoss.com

Пікірлер: 791

@diseyendiomu7382 6 жыл бұрын

I really needed this information, thank you for your help with this lesson.

@beatazienko960 5 жыл бұрын

I'm so glad I found your channel! Having no experience or training in starting food businesses, your videos are an information goldmine so thank you so much for making them.

@Therestaurantboss 5 жыл бұрын

Glad they are helpful! Be sure to take a look at my website as well - lots of free resources and private coaching options.

@duneshiamyers3391 2 жыл бұрын

@@Therestaurantboss has been in a long long and long term

@eranovita2734 2 жыл бұрын

Thanks a lot

@MarketingFoodOnline 6 жыл бұрын

great info I to am in the food business selling online but costs are a factor we consider as well

@Chanfabulous27 5 жыл бұрын

very helpful...I'm so intrigued!

@kranthikumarsatuluri 8 жыл бұрын

That was cool and important info for further stages of Restaurant Profession and Business. Wish you all the very best And Thank you so much.

@NaNaNandah Жыл бұрын

Thank you for the great information. I know how important it is to have a good foundation and you tackle every topic in a very objective way.

@Longevityosf 2 жыл бұрын

Awesome stuff Ryan Gromfin! You do speak like a Boss and your formulas and style is simple awesome, love the fact you are straight to the point and no music!

@Therestaurantboss 2 жыл бұрын

Thank you so much! Food costing can be made too complicated. I definitely like getting to the point and making it easier. Glad this video helped you.

@TheWaitersAcademy 4 жыл бұрын

Great job, Boss! I just subscribed. So many restaurants fail because they don't this exact info you have on your channel! I hope everyone is going to survive these hard times and get back to normal business! My people ( the waiters ) suffer as well as the restaurant owners right now! We are all hoping for a quick recovery! Keep up the good job!

@Therestaurantboss 4 жыл бұрын

Thank you and I wish you all the best in your restaurant's road to recovery.

@Cienfuegos85 6 жыл бұрын

Thank you for this. Its hard to run a place but glad to see there's help

@kaymarto3354 3 жыл бұрын

Been operating a restaurant for year now, but i never followed any of this, now that i have this info, i am trying to put the guidelines in place, thanks alot for this

@Therestaurantboss 3 жыл бұрын

So glad the video was helpful! If you need more help setting up systems for your restaurant, I recommend checking out my SCALE program at scalemyrestaurant.com.

@firenicez 8 жыл бұрын

I've watched a few of these types of video's but by far this is my favorite. Thanks so much for the precise information.

@Therestaurantboss 8 жыл бұрын

+firenicez you are very welcome.

@Diogene1936 5 жыл бұрын

Grande! Ryan, you really seem to know the hospitality industry. When I arrived in Australia, I was shocked by the silly mistakes of the Restaurant and Cafe owners.

@Therestaurantboss 5 жыл бұрын

Years and years of experience PLUS years and years of study. I will also say some common sense makes a huge difference.

@evaklugmann4422 7 жыл бұрын

Great job man. One thing, is it smart that Im 19 and I already knew how to control inventory and calculate usage, cost and sales at such age.. Not really, where I live; Saudi Arabia. I worked at McDonald's since I was 17 until recently , I followed my vision and set a goal, opened a very special food truck .. The speciality within this food-truck you can say is that because of lack of food trucks in my home place. I gained $22.776 for my first month. All of this is really a big thanks which goes sincerely to McDonalds. It taught me everything. Ive been a part of this empire a great time, made hard to be sure and didn't waste a second on trying to find what customers need , their demands , and lastly fix them with a big smile on their face. Cannot mention all the valuable things I gained from the great business.. I really hope from everyone to widen their perspective and see the valuable secrets and reveal it , a very great chance you could be a great business man one day.. good luck to everyone!

@catapurin 2 жыл бұрын

Thank you so much !! My parents have a restaurant and they’d actually teach me but i just feel like i need to learn it myself and thankfully i found your channel :))

@Therestaurantboss 2 жыл бұрын

Awesome! You should also check out my free toolkit that's filled with tons of free worksheets, templates, guides, etc. www.therestaurantboss.com/toolkit

@llewinidas 5 жыл бұрын

Stoked to find your youtube. We are just starting to gather data on starting up a restaurant/retail combination location similar to MOX Boarding House in Bellevue, WA, and your videos are extremely helpful!

@Therestaurantboss 5 жыл бұрын

So glad that we are able to help! Good luck and let us know how it goes.

@janisebolden-jackson6443 6 жыл бұрын

Contemplating opening a small restaurant in the near future; my life long dream. Really appreciate the information!

@hectorman8709 3 жыл бұрын

I am thinking about a new type of restaurants: eating-spots in eating-spots, food keeps changing, chefs also rotate this is opposed to current restaurants, thanks to this rotation of food and chefs, eating-spots are more powerful than restaurants, along with that, there is an app, people vote for the food that will be cooked in the next days menu is influenced by the live input of the people via an app

@heatsvids 6 жыл бұрын

This information is golden... Thank you!!!

@platinumemories 8 жыл бұрын

Great video! Exactly what I was looking for. Heading over to your website now. Thanks!

@Therestaurantboss 8 жыл бұрын

Thanks so much for the comment

@chefjohirkhan8147 9 жыл бұрын

So glad you enjoyed it!................

@stevenmilford8186 6 жыл бұрын

Thanks for the very helpful, easy to understand overview.

@titusnangolo1511 6 жыл бұрын

This presentation is very very much informative, keep it up each one teach one.

@rexcylcataloctocan5012 5 жыл бұрын

Every F&B cost controller must watch! highly recommended. THUMBS UP!!

@Therestaurantboss 5 жыл бұрын

Thank you so much!!!

@erhanozkan6449 2 жыл бұрын

Simple, clear and amazing explanation!!! Thank you so much.

@Therestaurantboss 2 жыл бұрын

Glad you liked it

@GrandPrizeFitnesAJAY 8 жыл бұрын

thank you....I'm starting a small restaurant in 2016. I am learning as I go so this is excellent advice for me.

@Therestaurantboss 8 жыл бұрын

My Pleasure...

@peibel10 7 жыл бұрын

Ajmal Millar how did it go mate?? i hope business is doing great, best wishes.

@evaklugmann4422 7 жыл бұрын

Ajmal Millar hows it going bro

@yongisevenone1535 7 жыл бұрын

hows your restaurant bro?

@DeliCupLA 7 жыл бұрын

How is the restaurant going?

@johnsanchez2714 4 жыл бұрын

Restaurant Boss, My students really enjoyed your teaching style and are making their journey in culinary arts much easier. Thanks.

@Therestaurantboss 4 жыл бұрын

I love to read this and happy to be a virtual mentor through my videos.

@poserrider559 4 жыл бұрын

Glad i seen this video , i had noticed one thing in indian restaurant that they had vast menu card but the food items in main course are more the same , but pricing varies as they put a tag on a dish like "special nonveg or Paneer tikka , butter chicken masala etc. In reality they put same vegetable stock and gravy in all dishes but charge higher for some dishes despite they taste the same.

@kimnikkolpatton6926 6 жыл бұрын

Ryan, I'm opening a Kosher Deli and HealthFood Market. Could I use the generic COG calculation worksheet to flesh out my health food market sales percentages? I understand preparation costs are factored in COG formulation not shelved products.

@michelejackson5523 8 жыл бұрын

I really love how you break it down...Thumbs Up!!!!!!

@excel-tutorial 11 ай бұрын

Thanks a lot for sharing it. It is helpful. As an additional information, I also create a dashboard tool to manage the restaurant. Just copy and paste this following title: Restaurant Management System - Food cost control - Dashboard Tutorial in Excel

@Therestaurantboss 11 ай бұрын

Excel is exactly how Ryan used to do things before he created the software! -Dawn, Team TRB

@jasonharsany2169 9 жыл бұрын

I own a growing food truck biz. Just came across your vids today. Very helpful/inspiring knowledge! Thanks!

@pbsnyderman 3 жыл бұрын

Hi Ryan, Great video, as always. If a restaurant sells packaged / bottled salad dressing, do you choose to include the cost of the bottles and labels in COGS as a category like, COGS - Packaging or do you put the packaging costs in the same account as, e.g., straws, to-go bags, and paper napkins? thanks, and happy 4th!

@antonio_xu 8 жыл бұрын

Really good videos man, thanks a lot, im definitely going to try your teachings. Keep up the good work!

@bernadsikawa4353 4 жыл бұрын

Can you help number for whatsaup

@hectorman8709 3 жыл бұрын

@sayeedqurbani3767 9 жыл бұрын

Thanks alot for the detailed video Sir. You are great and you made it so simple to understand. I have also subscribed your Home Page.Hope to get more new learning from you this coming days. Thank you very much again

@sholonator92 8 жыл бұрын

Damn you share very valuable information you deserve more subs!! thank you for your great work keep it up!!

@eringromfin5598 8 жыл бұрын

+luis villaescuza , Thank you, happy to help!

@aquilhaider4875 6 жыл бұрын

Steve Vd C

@hectorman8709 3 жыл бұрын

@cateringcoachal 3 жыл бұрын

Here is the importance of food costs: - It determines your probability - Lower Food Cost = Higher Profits - Properly Price Your Menu - Optimize your menu - It's not what you spent on food Thank you for sharing this timeless, valuable information and clarity of the formula. It is indeed helpful for every restaurant owner. Kudos to you! 🙌

@Therestaurantboss 3 жыл бұрын

Thank you for taking the time to comment!

@themaxfamily7654 Жыл бұрын

Happy to watch this video i ahve been having alot of issues on my food cost lately I WORK FOR MOVENPICK ICE CREAM ABUJA NIGERIA

@martyembry51 10 жыл бұрын

I am now a huge fan! This and all of your videos are so very helpful Ryan. Thank you for sharing!

@Therestaurantboss 9 жыл бұрын

Marty Embry My pleasure, thanks for the kind words.

@jeremy1409 8 жыл бұрын

Really clear video, thanks ! Any one regarding the costing of coffee breaks ?

@adawait2179 2 жыл бұрын

Just subbed I'm a little green to food management. I'm going to be taking a new role and I subscribed to your channel based how informative this video was thank you and can't wait to flood you with questions like you said. I will also be checking out your website here in the very near future. Thank you

@yourhighness4746 8 жыл бұрын

Thank you very much, excellent information.

@cocob2411 5 жыл бұрын

Hey Ryan Thank you for the video... Sweet and to the point. Keep up the good videos. God Bless You and your family

@cocob2411 5 жыл бұрын

Sorry Best Regards John Barragan

@Therestaurantboss 5 жыл бұрын

You're welcome!

@lostre2583 5 жыл бұрын

This was great information thank you Mr. Boss!

@Therestaurantboss 5 жыл бұрын

Thank you - glad you enjoyed the video!

@savitriseelal4691 5 жыл бұрын

thank you sir .great information,this will be very helpful to a lot of people ,doing their own business,thanks again

@Therestaurantboss 5 жыл бұрын

You're welcome!

@cehinton 4 жыл бұрын

Great video as usual, Ryan. I did not see the guide mentioned in the video on your website however. It may be b/c it is now several years after the vid was created, so no worries.

@Therestaurantboss 4 жыл бұрын

Hey Christopher! You can find the document here: therestaurantboss.com/restaurant-food-cost-target/

@jersondelacruz9667 7 жыл бұрын

Very helpful video thank you..

@kimnikkolpatton6926 6 жыл бұрын

Excellent explanation of equations. Learning so much. Downloading the COG average calculation workbook now. Thanks

@Therestaurantboss 6 жыл бұрын

Your welcome! Hope it's helpful.

@maheshmenon7099 7 жыл бұрын

Thanks a lot.. it was great information and learning... put very simply. God bless

@Therestaurantboss 7 жыл бұрын

Thank you.

@thebarefootgrandma2117 5 жыл бұрын

New area for me as I’ve taken over a 15-acre recreation park that has a snack/coffee bar; this has been very helpful in many ways. Introducing terminology is a good starting place and will be looking at your website. Mahalo Nui Loa from Kauai

@Therestaurantboss 5 жыл бұрын

So glad it's been helpful and good luck! I have coaching options available if you get into a real pickle. therestaurantboss.com/hire-me

@miraghatalibzadeh9374 6 жыл бұрын

So clear for all! Respect!

@kushal4484 7 жыл бұрын

hey I'm planning to start a takeaway only restaurant, any tips about that in terms of cost, mistakes to avoid etc. would love to see a video about that. and also great work there, you're really helping a lot of newbies, thumbs up!

@srisulartiningrum7205 3 жыл бұрын

Thank u For sharing your Knowledge. F & B really is useful for teaching and references or making journals

@Therestaurantboss 3 жыл бұрын

Glad it was helpful!

@jeang8489 3 жыл бұрын

Thank you so much for making this knowledge very user friendly.

@Therestaurantboss 3 жыл бұрын

You're very welcome!

@arunbakshi231 4 жыл бұрын

Excellent Video Mr. Gromfin

@Therestaurantboss 3 жыл бұрын

Thank you kindly.

@GusStAnthony 7 жыл бұрын

Thanks for the info. Just subscribed.

@uilleanntaff 7 жыл бұрын

Excellent high quality info explained in simple terms well done great vidio

@rubygupta1567 3 жыл бұрын

Really nice information

@alyssahinojos3560 3 жыл бұрын

You simplified it so well! Thank you!

@Therestaurantboss 3 жыл бұрын

Glad the video was helpful and helped to make the numbers make more sense.

@brandonnashadka9458 3 жыл бұрын

thanks for the info.

@rajita1019 5 жыл бұрын

Thank you so much for posting these videos! I've been wanting to start a restaurant for a while now, and only now have a concept that I really like; but I never took any business classes or anything and have no idea how to bring my vision to reality. I just watched a couple of your videos, and I think this will be perfect to get me started! By the way, Cannabis is about to be legalized where I live, and my concept is a cannabis bar (edibles), that offers regular food and DIY kits. (inspired by DIY Bar in Portland.) If anyone has specific advice for me, please let me know!

@Therestaurantboss 5 жыл бұрын

Glad the videos were helpful and good luck in your adventure.

@bayleeshea8037 2 жыл бұрын

Take precautions calculating taxes and legal regulations most cannabis business don’t grow profitable because of how much is taken out

@avickmendiola 3 жыл бұрын

Thank u! Its very big help.

@Therestaurantboss 3 жыл бұрын

You're welcome!

@nokwandamathenjwa4725 Жыл бұрын

Very happy to have this channel. I my case i serve different menus daily so how do would i value my inventory left from the previous month to make it the opening stock for the new month

@Therestaurantboss Жыл бұрын

We're happy to have you here! The fact that you serve different menus each day doesn't change anything. Ryan doesn't teach inventory for most operators but it's as simple as establishing a value for everything at the beginning of the month and counting it at the end of the month. The ending inventory of one month is the beginning inventory for your next month. Hope that helps! -Dawn, Team TRB

@AlwaysHappy226 2 жыл бұрын

Thank you for your great experience and explaination

@Therestaurantboss 2 жыл бұрын

It's my pleasure

@paperinik69 8 жыл бұрын

Hi, how would you set you COGS goal for different items? Would it make sense to set an absolute margin target instead of a COGS percentage?

@StefaanCodron 6 жыл бұрын

Thanks for all your advise and mentorship, and looking forward in using Click bacon as part of our startup restaurant in Tasmania, Australia

@Therestaurantboss 6 жыл бұрын

We have lots of users in Australia. Let me know if I can help.

@masixolelusasa7992 5 жыл бұрын

You are amazing and a blessing to the industry

@Therestaurantboss 5 жыл бұрын

Wow - thank you so much!

@dametriusmunerlyn6317 10 жыл бұрын

I am a recent graduate from culinary school and I am planning on opening my own restaurant in the near future. I just wanted to say thank you for this video and I will be visiting your site.

@RyanGromfin 10 жыл бұрын

So glad you enjoyed the video... let me know if I can help you with anything regarding your restaurant!

@hectorman8709 3 жыл бұрын

@marceloc2 8 жыл бұрын

Very helpful!

@quasymoto212 9 жыл бұрын

This is great dude, I'm writing this all down.

@Therestaurantboss 9 жыл бұрын

Hey Thanks Roland Sylvain , check out the full video series at therestaurantboss.com for a way more detailed look at restaurant financials and costing formulas.

@MarketingFoodOnline 6 жыл бұрын

great info

@sobannegi3532 4 ай бұрын

Wow amazing teaching method. Every thing is Crystal clear. Good work Mr boss

@Therestaurantboss 3 ай бұрын

Thanks a million -Dawn, Team TRB

@tarun4 10 жыл бұрын

thanks bud,,,im in process of adapting the formula you displayed. lets see if that works

@Therestaurantboss 10 жыл бұрын

tarun yadav Sorry for the delayed response, how are things going with you implementation?

@Ayd2222 3 жыл бұрын

I watched this again and I want to give it another thumbs up!

@Therestaurantboss 3 жыл бұрын

AWESOME - thank you!

@mchowdhury827 3 жыл бұрын

Thank you ryan for amazing videos

@Therestaurantboss 3 жыл бұрын

Glad you like them!

@andytv2379 3 жыл бұрын

Thank you so much. It helped me a lot.

@Therestaurantboss 3 жыл бұрын

You're welcome!

@dhanpalsingh1889 4 жыл бұрын

Great video ,

@chendavid1851 3 жыл бұрын

Really Helpful. Thanks very much.

@Therestaurantboss 3 жыл бұрын

You're welcome!

@philliprgarcia 5 жыл бұрын

Valuable information. Thank you very much for your knowledge.

@Therestaurantboss 5 жыл бұрын

Thank you!

@Essendon098 5 жыл бұрын

Hy i m shelly i dont know how to make recipe llate cost template from starting plz if you can help me i really thnkfl to uu

@zenobiazorachacko1705 7 жыл бұрын

hi Ryan.. to calculate my beginning inventory for my restaurant food cost... do I have to calculate the the amount of fresh vegetable and fruits?

@CY3ER 4 жыл бұрын

I'm a young restaurant owner. Thank you so much for these videos!

@Therestaurantboss 4 жыл бұрын

You are very welcome! Thank you for watching and I hope they are helpful.

@benrabahmohamed9657 4 жыл бұрын

Awesome video thanks again

@Therestaurantboss 4 жыл бұрын

You bet

@utitautita3267 4 жыл бұрын

Thank you! This is very helpful!

@Therestaurantboss 4 жыл бұрын

You are welcome!

@rachelwalters8055 7 жыл бұрын

Very helpful to a chef trying to learn the basics

@margeauxgoetze7958 6 жыл бұрын

Hi Ryan, what would you do if you start a new restaurant and you have an existing restaurant but you want to transfer some of the stock from the existing place to the new place? where would you add that stock value to your COGS calculation? with purchases?

@andrewgray5680 8 жыл бұрын

opening stock + net purchases - closing stock will give you food cost. Then food cost divided by monthly sale & multiply by 100 will give you food cost percentage. Thank you soo much.

@RyanGromfin 8 жыл бұрын

+Andrew Gray, I am so glad that this helped! Cheers!

@prosperthedubaiexplorer8980 4 жыл бұрын

thanks for the teachings, Great

@Therestaurantboss 4 жыл бұрын

Glad you like them!

@Xfoot-age 3 жыл бұрын

Love these videos

@Therestaurantboss 3 жыл бұрын

Thank you!

@jinxlinwinx7994 7 жыл бұрын

I was wondering if you had any training video's over food cost/sales available to order for training kitchen Management and Staff

@WyatttheRyatt 10 жыл бұрын

Thank you for this great video!!

@Therestaurantboss 10 жыл бұрын

Linda Ramos you are so very welcome, hope it's helpful for you!

@shamerebudram7254 3 жыл бұрын

Really clear and informative video, thank you.

@Therestaurantboss 3 жыл бұрын

Glad it was helpful!

@Saminoumatt 5 жыл бұрын

Hi, This is a great video. will go directly to your website.

@Therestaurantboss 5 жыл бұрын

Wonderful!

@jgm81mx712 8 жыл бұрын

NICE VIDEO IT HELPS ME TO LEARN MORE AND DO MY POWER POINT PRESENTATION ON MY RESTAURANT

@Therestaurantboss 8 жыл бұрын

+Juan Garcia-Martinez glad I could help.

@chefmeephree 6 жыл бұрын

Heyyyy….thanks, your info was very informative! Question: Can I use this formula for Private Chef Services and Event Catering, also??

@Therestaurantboss 6 жыл бұрын

Its all the same.

@carthikblackheart6746 4 жыл бұрын

Great learning insights!

@Therestaurantboss 4 жыл бұрын

Glad it was helpful!

@nisaarahmad4072 8 жыл бұрын

thanks a lot sir could you share for us that what is the main part in restuarant business beginning part 1-business plan 2-financing 3-decoration 4-market

@sirrichardson2185 2 жыл бұрын

Thanks so much for sharing

@Therestaurantboss 2 жыл бұрын

You are so welcome

@jorgecarol231 8 жыл бұрын

Great video! Thanks

@Therestaurantboss 8 жыл бұрын

your welcome.

@juliogomez9616 3 жыл бұрын

Thank you! great info also you are a great teacher.

@Therestaurantboss 3 жыл бұрын

I appreciate that!

@prannatchakraborti5476 3 жыл бұрын

Very useful, Thank you.

@Therestaurantboss 3 жыл бұрын

Glad it was helpful!

@niduptshering3845 4 жыл бұрын

thank you very much sharing your idea... sir can you tell me how we should setup bar and restraunt.

@Therestaurantboss 4 жыл бұрын

Hi! is there a specific question that you have? It is too hard to coach somebody though the entire process via KZfaq. I can answer one question, but other than that, I offer coaching services so we can tailor everything to your business. therestaurantboss.com/hire-me