Unlock Your Restaurant's Profits with These 3 Food Cost Formulas
I am sure you’ve been told you need to calculate your food cost. Heck, you’ve probably heard from several experts that your food cost target is a 34% food cost, or that you’re supposed to mark up each of your food items on your menu 3 times. Well, neither of these methods are correct. Flush them from your mind because they are total BS.
In this episode of The Restaurant Prosperity Formula, I will explain why those approaches are wrong and why it’s important to know your food cost. I’ll also explain what you should be doing to calculate your food cost, including the three food cost calculations you must know to control your food cost: budgeted food cost, actual food cost and ideal food cost.
You’ll learn how comparing all three of these numbers will allow you, for the first time in your restaurant life, to gain valuable insights into your menu that will allow you to virtually unlock your profit potential. Listen now to unlock your restaurant’s profits with the three food cost calculations.
Importance of food cost formulas
During this podcast, you’ll learn:
- The difference between the three food cost formulas and how to calculate them.
- Why using the national average to calculate your food cost doesn’t work.
- The tools you must have in place to calculate all three food cost formulas.
- The systems you must have in place to calculate all three food cost formulas.
- How this affects your kitchen management team.
- How much money is lost when you aren’t measuring these three food cost numbers.
- Tactics you can use to lower your actual food cost when it doesn’t line up with your budgeted or target food cost.
If after listening to this episode, if you don’t work toward knowing all three food costs for your restaurant, you will continue to lose money or not make as much as you can. You will also continue to struggle with kitchen management and kitchen operations. This is information that will help you be a stronger leader in your restaurant and a smarter restaurant operator overall.
Click the podcast player above to listen in, or you can watch the video on YouTube, click here to download the latest episode.
