App & Technology Operational Efficiency
Restaurant Food Cost Basics 101

Recipe Food Cost Basics 101

Your food cost are one of the biggest factors to your restaurant’s success. Knowing your food costs affects everything from how you price out your menu to what you order on a weekly basis. 

It is especially important these days to know exactly what your food costs are. Many restaurant owners are counting pennies and doing everything in their power to maximize profits.  

What Is Restaurant Food Cost?

What Is Restaurant Food Cost?

When we talk about Food Costs, we’re typically referring to PLATE COSTS (recipe costs) and Cost of Goods Sold (COGS) 

Plate Cost is the cost that a specific menu item actually costs you to make. This is calculated by measuring out every ingredient that goes into the dish and the price for that ingredient. The plate cost is all the ingredient costs added together. 

Cost of Goods Sold (COGS) is the total food cost over a period of time like a week or a month.

The formula to determine your COGS  is (Beginning Inventory + Purchases – Ending Inventory) ÷ Food Sales = Cost of Goods Sold

Restaurant owners are stretched thin on time, facing staffing issues, supply chain shortages and doing anything in their power to stay profitable.  

Lucky for you, there is light at the end of the tunnel! 

The Back Office’s goal is to help you get a handle on food costs, become more profitable and save time by following these restaurant basics and implementing some killer technology in the process. 

Ready to streamline your operations, become more profitable and put time back on your calendar? Schedule a demo today