How to Calculate Food Cost? (Real Math Example)
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YouTubeLearn with Owner.com
🍕Calculate your food cost (easy formula) Every restaurant owner should know this: Purchases ÷ Sales = Food Cost Then multiply by 100 to get your percentage. Keep that number under 30% and you’ll have room for labor, rent, and still hit your profit margins. Go above it, and profitability gets tight fast. 👉 If you’d like me to take a look at your menu and share ideas I’ve seen work across thousands of restaurants, drop your restaurant name and city in the comments. #restaurant #restaurantowner #
0:38
🍕Calculate your food cost (easy formula) Every restaurant owner should know this: Purchases ÷ Sales = Food Cost Then multiply by 100 to get your percentage. Keep that number under 30% and you’ll have room for labor, rent, and still hit your profit margins. Go above it, and profitability gets tight fast. 👉 If you’d like me to take a look at your menu and share ideas I’ve seen work across thousands of restaurants, drop your restaurant name and city in the comments. #restaurant #restaurantowner #
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🤯 Want to know how to calculate your restaurant's food cost in just 60 seconds? Start with inventory costs, add labor costs, then calculate your cost of goods sold (COGS). For example, with an ice cream, inventory costs are $1.50 and labor costs are $0.50 per serving, totaling $2.00. If you sell an ice cream for $7, your food cost percentage is 28.57%. Keeping this between 15%-30% will help you maintain a healthy profit margin. Once you know your food costs, you can better promote high-profit i
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