Emerald Business Systems Blog


Can you easily calculate your food cost?

Posted in Bars and Taverns,Restaurant by ebs4pos on September 29, 2009

I come across bar and restaurant owners all the time that are unable to calculate their food cost/margin or their beverage cost/margin. These simplest of calculations can be done on the back of a napkin. I’ll try to explain each aspect of it here as simply as possible:

Whether you run a steak and seafood restaurant, a family restaurant, a pub or a martini bar, you need to know what your food cost is.

The basic food cost calculation itself is simple:

Opening Inventory Value + Cost of Purchases – Closing Inventory Value = Usage Amount

Usage Amount / Sales Revenue = Cost of Goods Sold (%)

via Can you easily calculate your food cost?.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s


%d bloggers like this: