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Food Costs Formula: How to Calculate Restaurant Food Cost Percentage

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What is the food cost formula and how can you use it to calculate your restaurants 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. If you enjoyed this video and want more just like them including a free training series called the foundation to a lifetime of restaurant success. Click Here: http://TheRestaurantBoss.com To subscribe to my you tube channel, Click here: http://www.youtube.com/subscription_center?add_user=gromfinboss
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Text Comments (492)
Elijah Iaea (3 days ago)
How do you cost out a recipe or a formula for such? And how do you know yield percentages per item or ingredients?
The Restaurant Boss (1 day ago)
HI Elijah! I have a tool, clickBACON, that helps with this. Check it out - clickBACON.com
Phillip Garcia (8 days ago)
Valuable information. Thank you very much for your knowledge.
The Restaurant Boss (8 days ago)
Thank you!
abdul kadeer (20 days ago)
How can I set a profitable price for a single dish
The Restaurant Boss (51 minutes ago)
Please see this other video: https://therestaurantboss.com/how-to-set-prices-on-your-restaurant-menu/
ASH Mackey (1 month ago)
Excellent video and very informative and easy to follow. Exactly what I was looking for. You cleared up my thoughts and put them in order and perspective. But my question to you is about waste management. Although waste is inevitable, I prefer to monitor and limit as much as possible ( I hate unnecessary waste based on childhood training). Waste numbers cant be factored in with usage numbers right. So should waste be calculated into dollars and somehow deducted from the profit? Wouldn't that produce a more precise and true number in profit? Hope I'm making sense to you. Thank in advance for your reply
The Restaurant Boss (21 days ago)
Just calculate waste in dollars as a benchmark for training and improvement, that's it....
Anjela Jarrett (1 month ago)
Question... I've found my place, I know what I'm doing with it, I already have a pretty extensive business plan being written... What's a decent time frame to ask the previous ownerto show their books on the business? The owner I'm buying from claims to have the books for the last 20 years, but is only willing to show 6 months to a year tops? How red of red flags is this?
The Restaurant Boss (1 month ago)
Follow your instinct!
Anjela Jarrett (1 month ago)
It's a whole restaurant, properties and land with it... I'm just hesitant because the books
The Restaurant Boss (1 month ago)
Definitely, red flags, if you are buying their business. If you are just buying a location with equipment than who cares....keep in mind if you are buying used equipment, don't pay for the business. Most people think they are buying a business but are only buying used equipment. I don't mean on paper, you are buying a business on paper, I mean the price. Businesses have systems, clients, processes, procedures, marketing, etc... otherwise you are just buying equipment.
Prem anandh (1 month ago)
hi sir were to find a marketing budget on monthly how to fix the percentage pls give some formulas
The Restaurant Boss (1 month ago)
Hi Prem! Check out my software at clickbacon.com. It was designed to do just this!
casey b (1 month ago)
I would like to know more about this :) watching from the Philippines!
The Restaurant Boss (1 month ago)
Welcome! Glad you are finding the videos helpful.
Abayomi Oladeji (2 months ago)
Educative, thank you.
The Restaurant Boss (2 months ago)
You're welcome!
SAVITRI SEELAL (2 months ago)
thank you sir .great information,this will be very helpful to a lot of people ,doing their own business,thanks again
The Restaurant Boss (2 months ago)
You're welcome!
Thank you.
K. Jamal (2 months ago)
Dude, just thanks 💪🏻
The Restaurant Boss (2 months ago)
Ha! You're welcome!
What is portion control please explain , and how control it
The Restaurant Boss (2 months ago)
Making sure you are serving the same portions that you designed to be served.
xMeatxHeadx (2 months ago)
Thanks for posting the video. Once you obtain some of these hard numbers how do YOU put them together and make sense of the data? Perhaps maybe some kind of profit/loss assessment? Determining how profitable your business really is is paramount of course... easiest system possible?
The Restaurant Boss (2 months ago)
Great question! This is exactly why I created my software tool BACON. It helps you make sense of the numbers so you can act proactively on them. Check it out clickbacon.com
Ramblin Rotisserie (2 months ago)
I looked on your website for the Food Cost doc that you mentioned in this video but haven't found it. Is there a link you could post?
The Restaurant Boss (2 months ago)
rexcyl cataloctocan (2 months ago)
Every F&B cost controller must watch! highly recommended. THUMBS UP!!
The Restaurant Boss (2 months ago)
Thank you so much!!!
Dave Barnes (2 months ago)
Love your videos, but you say that food cost is not what you spend on food, but that's exactly what food cost is. You're defining food cost as a percentage, which is called (drum roll): food cost percentage. If you add up all your ingredients and what they are costing you, that's the food cost, and that's the money you spent. Tell me if I'm missing something here. Thanks.
The Restaurant Boss (2 months ago)
Most people get plate cost and food cost confused. You are not missing anything, I was probably just not clear enough in that distinction.
Andrews lurduswamy (2 months ago)
Thanks for the video, Im a supervisor in the restaurant i would like to know as supervisor how could i control the cost, i would like to learn more please advoice
The Restaurant Boss (2 months ago)
There are many ways to control cost....portions, waste, theft, spoilage, purchasing price, selling price are just a few.
John B (2 months ago)
Hey Ryan Thank you for the video... Sweet and to the point. Keep up the good videos. God Bless You and your family
The Restaurant Boss (2 months ago)
You're welcome!
John B (2 months ago)
Sorry Best Regards John Barragan
Taleb Bagazi (2 months ago)
Hi boss, I like your video and thanks for your high efforts to enlighten us. I have a question what did you calculate, the foods wastage include the formula or it's goes into a different account? Also I remembered when I was studying managerial accounting I had to add many things in regards to find the cost and how many should I make of products to gain a profit for example Labour, machine, clothe or are material, electricity.... etc. All that's were factors to initiate the cost of the product. I hope you can explain that's to me
Taleb Bagazi (2 months ago)
+The Restaurant Boss can you give an example on how to find the food cost. Thank and I wish you best of luck
The Restaurant Boss (2 months ago)
Are you talking about how food waste affects food cost? IT DOESN'T. If the food spoiled or was wasted that is the kitchens fault, so they should not get a credit for it.
Rajita (2 months ago)
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!
The Restaurant Boss (2 months ago)
Glad the videos were helpful and good luck in your adventure.
Island Concierge (3 months ago)
No more big green button on your website to download "the foundation for a lifetime of restaurant success". How I can i still get a free copy of this digital publication. Please help me, thanks
The Restaurant Boss (3 months ago)
Click here and then scroll to the bottom of the page: https://therestaurantboss.com/?s=the+foundation+for+a+lifetime+of+restaurant+success
Rajiv Mahadkar (3 months ago)
I am thinking of opening a very small and very cheap concept burger and shake joint around pensacola area. I talking about cheap concept because I recently lost lot of money in a cafe . I have also learned my lesson regarding leases . Absolutely no signing personal leases and also thoroughly reading and understanding through a professional also no long term unless you a very safe option of terminating the lease with minimum damage. I need your thoughts on this concept . i can reach you via your contact info if mentioned . thank you
Rajiv Mahadkar (3 months ago)
thank you
The Restaurant Boss (3 months ago)
Hi Rajiv! Sorry to read about the cafe and glad you had some "lessons learned". You can read more about my coaching services at therestaurantboss.com/coaching. That way we can block time and really dive into your questions.
Waleed Gabr (3 months ago)
Hello , i cannot find the link to get the calculation sheet from your website, can u help me ?
The Restaurant Boss (3 months ago)
You can download it here: https://therestaurantboss.com/restaurant-food-cost-target/
PC entertainment (3 months ago)
What is the role of discount and Complimentary In food cost Sir..
The Restaurant Boss (3 months ago)
Well there are 3 methods of handling this. My favorite method is to account for all the food sold, then remove the full sales price from the income line and expense in a different account. So if you sold $2,000 in food today, and had $100 in coupons. You adjust your sales from $2,000 to $1,900 and expense the $100 in coupons to marketing. Now you can run your purchases against 2 numbers. The food cost for you chef would be against the full sale, they did their job, not the chefs fault you decided to run a coupon. Then for your true food cost, you can run it against the discounted number. BACON will handle all this for you if you are not using a simple food cost program please check it out, https://clickbacon.com
navin chowdhary (3 months ago)
budget process for food and beverage service management
Kisty Engel (3 months ago)
Would you be interested in a mini working vacation in the Caribbean to come 'fix' - Ie. put our kitchen pricing together?
The Restaurant Boss (3 months ago)
Hi Kisty! You are welcome to contact me and we can talk about my coaching services.
Jayda Johnson (3 months ago)
Where do you suggest we order our food from ? And what is the formula to pricing a plate out of a huge quantity of goods?
The Restaurant Boss (3 months ago)
I do not recommend where to order food, whatever is best for you. To calculate the cost of food on a plate, add up the cost of all the ingredients to make the plate of food. This very complex, but actually simple.
Yogesh Prabhakar (3 months ago)
Very easy way to explain this 👌👌👌👍👍👍
The Restaurant Boss (3 months ago)
Thank you.
Yulfiawan Yulfiawan (4 months ago)
thank you so much.. keep posting ^^
The Restaurant Boss (4 months ago)
Thank you! We post weekly...be sure to subscribe!
shehzad anwar (4 months ago)
What should be the buffet food cost?
The Restaurant Boss (4 months ago)
Overall, it should be roughly the same as your entire menu, but individually, just like your menu, items can range from 20% to 50%.
RAJA Kamran (4 months ago)
Sir I need more information cost and storekeeper
The Restaurant Boss (4 months ago)
I am sorry...can you be a little clearer on what you are looking for?
RAJA Kamran (4 months ago)
Please send me sir
Tania Bastien (4 months ago)
Is there an application that can help with plugging in numbers for determining the plate cost? I have quite a few menu items and I want to know the cost of each one, it’s so time consuming tho. Any advice or help is considered. Thanks!
The Restaurant Boss (4 months ago)
There are many out there but to be honest they are more complex than they need to be, just pull out a piece of paper and do some math. You don't have to be perfect, just within a few cents. I think its more important if you are overwhlemed by this process to know your weekly and month total food cost, rather than each plate. Then if there is an issue you can dig more into each plate. Have you seen this software: https://clickbacon.com. My team created it for this exact reason.
Kim Patton (5 months ago)
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.
Kim Patton (5 months ago)
Excellent explanation of equations. Learning so much. Downloading the COG average calculation workbook now. Thanks
The Restaurant Boss (5 months ago)
Your welcome! Hope it's helpful.
DURGA DHAKAL (5 months ago)
Thank you Boss, I am very happy watching this video ,It is very useful for restaurant business man or who wiling to start restaurant business for them.. I am a chef, I am very interested to learn and grow my ability and skill more and more about like that , Thank you so much I go in your website,,, and study ,,, . MY numbe: 0097450570686, I am in Qatar Now.
The Restaurant Boss (5 months ago)
Please visit my website for more information and reach out via email. https://therestaurantboss.com
Great information! I am a former restaurant and bar operator who now does restaurant brokerage in south Florida. I do beg to differ on being able to estimate food cost. There are “ traditional” numbers that food cost should be around. When staring up and doing a business plan these can be used I believe. Obviously there will be anomalies as in when limes went through the roof and cogs went ballistic for anyone who used them extensively.
The Restaurant Boss absolutely. Big difference between a Mexican restaurant and a high end steak place when it comes to food cost. I know a guy here in Delray who runs a 50% food cost but he also does bottle service later in in the evening as his restaurant morphs into a club/bar. The margin on the bottle of vodka is much better.
The Restaurant Boss (5 months ago)
Off course for budgeting and pre-opening, but telling an owner they are running a 33% food cost and that is too high without knowing anything else is JUST PLAIN IGNORANT. To your point, this is why I wish more prospective owners would consult with an expert when putting together a budget as we have seen enough examples to know where they should be based on the type of service, location, quality, guest expectation etc...
Chef Me'shelle Collins (5 months ago)
Heyyyy….thanks, your info was very informative! Question: Can I use this formula for Private Chef Services and Event Catering, also??
The Restaurant Boss (5 months ago)
Its all the same.
great video: " A financially healthy restaurant typically has food costs between 25 and 35 percent, but you can get away with spending more on ingredients if you spend less on labor, and vice versa." from smallbusinesschron website
The Restaurant Boss (5 months ago)
That is called prime cost and you are absolutely correct. I have clients with 50% food cost making a TON of money.
Georgia Harding (6 months ago)
Your video really help me thanks a lot
The Restaurant Boss (6 months ago)
ExMachina70 (6 months ago)
I have a business partner who insists that food cost is with labor involved. The problem here is that by adding 6 minutes labor to cooking fries will with food make to total cost come out to $1.89 making it 80.34%. Is he right in that this is the method of calculating the cost?
The Restaurant Boss (6 months ago)
Well your partner is completely wrong by industry standards...also my common sense it makes no sense. You can't break down each task with a labor component. You can add them in total. Look for my videos on Prime Cost.
Janise Bolden-Jackson (6 months ago)
Contemplating opening a small restaurant in the near future; my life long dream. Really appreciate the information!
Marketing Food Online (7 months ago)
great info I to am in the food business selling online but costs are a factor we consider as well
Denise Reilly (7 months ago)
How to make Mexican rice
The Restaurant Boss (6 months ago)
just google that, a million recipes.
explor pakistan (7 months ago)
hi, Excellent advice for beginners...i went on to your website to download the kit but its not for free...
The Restaurant Boss (7 months ago)
Which kit? I have a small video series that is free on the Start Here page, its a bit dated and it getting updated soon, but still great information.
Eric Downs (7 months ago)
Where is the other video that describes how to vary the price of the burger. We do pizza and sometimes it is hard to calculate
Eric Downs (7 months ago)
Market Minus is awesome. Thanks for the info. This allows me to really upscale some of my pizzas! Of course how do we find out what the market will pay? That is the hard part.
The Restaurant Boss (7 months ago)
Here you go...Cost Plus Pricing or Market Minus Pricing https://therestaurantboss.com/how-to-set-prices-on-your-restaurant-menu/
ExMachina70 (7 months ago)
Don't forget the "The" when you type the domain name. I made the mistake of typing www.restaurantboss.com and thought, "Shit! It's no longer available!"
The Restaurant Boss (7 months ago)
thank its www.TheRestaurantBoss.com
Sagar Rijal (7 months ago)
The Restaurant Boss (7 months ago)
Jason Lau (7 months ago)
this is very helpful. pls share inventory levels for perishable items. Likewise, what should you consider in planning w poor forecast
Dominique Pulliam (7 months ago)
Thank you very helpful
1NeoSoulChild (8 months ago)
Question... the sba.gov website describes COGS as the cost of materials + labor Should we be considering labor and all materials (disposable) used to serve each plate
1NeoSoulChild (8 months ago)
Ryan Gromfin University 😁
FARAH HUSSAIN (8 months ago)
Hi ! I am planning to start a small food venture.. But going forward want to have outlets of it all across.. Should I first start a home based venture.. If so would it make it difficult for me to incorporate values later in a store format? As in if I want it to be presented in very earthy fashion would it matter if for now I do a home business and sell in plastic containers
Debora Sousa (8 months ago)
Sorry but I am doing business in college and. A need to add merging. Profit on my. Dish of 65% and. I don’t know how
Roger Rathbun (8 months ago)
How do I calculate my employee wages into each plate ?
The Restaurant Boss (4 months ago)
You don't, labor is a totally seperate calculation. You use prime cost to determine your wages and cogs sold. Checkout this video: https://clickbacon.com/software-demo
Hurnake Dhillon (4 months ago)
Roger Rathbun bump
Safdar Shaik (8 months ago)
Sir,in your website do you have detailed analysis of f&b costing.
nick Hernandez (8 months ago)
Hey bud I have been working at a restaurant for so long. Started as a regular Cook moved up to sous Chef, well we are constantly looking for new Cheffs because they keep quitting well I know everything there is in that restaurant. They pretty much put me in charge and I am running the kitchen. In no way am I calling myself a chef because I still have a lot more to learn. Just really started studying food costs and would like to know. What should I do when the Chef didn't have the paper for our last food purchase so I could take a beging inventory?
Nelson Cienfuegos (8 months ago)
Thank you for this. Its hard to run a place but glad to see there's help
Igor I. (9 months ago)
Man I'm gonna open a fast casual restaurant in nyc with your training. This better not be bs.
The Restaurant Boss (8 months ago)
Hey Igor, sorry for the delayed response. I think you can see I am not full of BS dude.
Prakash Sapkota (9 months ago)
I am planning to start a restraunt business so how to start or elsewhere what are the things that I should keep in mind. Plz reply to my e mail-- [email protected]
The Restaurant Boss (8 months ago)
Aamir Ahmad (9 months ago)
Can you please explain me what what is KPI and how does it work in detail Thanks
Aamir Ahmad (9 months ago)
The Restaurant Boss Please can you give me some example how make restaurant KPI and how does it impact over businesses. I appreciate for any reply Thanks again
The Restaurant Boss (9 months ago)
KPI is just short for Key Performance Indicator, they can be anything that is measurable and important to your business.
vasudev charan (9 months ago)
Thank you so much for being kind and so clear , after few days I have an interview for restaurant manager ( currently I am working as supervisor ) please let me know what they want to know from me . Thank you
The Restaurant Boss (9 months ago)
Ask them what they want you to know.
Diseye Ndiomu (9 months ago)
I really needed this information, thank you for your help with this lesson.
Titus Nangolo (10 months ago)
This presentation is very very much informative, keep it up each one teach one.
AAMIR AHMAD AHMAD (10 months ago)
could you please explain me what is the job role of a cafe area manager .
The Restaurant Boss (10 months ago)
if by area you mean you manage multiple stores, than that is exactly your job. To ensure that each unit is constantly raising their standards, following processes and procedures and exceeding guests expectations.
Margeaux Goetze (10 months ago)
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?
The Restaurant Boss (10 months ago)
Transfers should lower the cogs in the restaurant it transfers out of and increases the cogs at the restaurant it transfers into.
Rajesh Kumar (10 months ago)
B. N. N N
The Restaurant Boss (10 months ago)
Stefaan Codron (11 months ago)
Thanks for all your advise and mentorship, and looking forward in using Click bacon as part of our startup restaurant in Tasmania, Australia
The Restaurant Boss (10 months ago)
We have lots of users in Australia. Let me know if I can help.
Stefaan Codron (11 months ago)
Hi, Will food cost calculation /database become part of Click Bacon?
The Restaurant Boss (11 months ago)
Individual recipe costing, yes we have completed the build. We are going to be beta testing it for a while.
Soul of Chogokin (11 months ago)
What is the diff between COGS and Food Cost?
Soul of Chogokin (6 months ago)
One more question sir if you dont mind...what should i include to consider when calculating food cost or plate cost? Labor, expenses etc...what is the calculation? Ty
Soul of Chogokin (6 months ago)
The Restaurant Boss straight to the point...ty sir!
The Restaurant Boss (11 months ago)
Cost of Goods Sold is total, all your income categories, Food Cost is your Food Cost of Goods Sold, but just for food.
Thomas Conner (11 months ago)
Would I add maintenance/ replacement equipment to my budget? Or does that have a category of its own? Also does your software link up with the food distribution companys? So you can get perfect food cost when building plates.
Ryan Gromfin (11 months ago)
My software only tracks controllable expenses, the examples you listed are capital expenses. Keep track of those in your accounting software. BACON is a Restaurant financial dashboard NOT accounting tool. Regarding plate cost and integrations, also no. We are a very simple, easy to use, straightforward platform. To be honest, I don't believe the added work and expense associated with "perfect" plate costs that are never perfect is worth it. Our systems uses a patent-pending formula to guesstimate your cogs without taking inventory, pretty cool stuff that I will explain in our demo. https://clickBACON.com
Steven Milford (11 months ago)
Thanks for the very helpful, easy to understand overview.
Karen Tran (11 months ago)
Can you please show me how to calculate break event point??
Miragha Talibzadeh (11 months ago)
So clear for all! Respect!
Yee Siew Chew (1 year ago)
Do you have video for recipe cost? Which include the cost, food percentage and selling price of the recipe? That show step by step. Should I put my selling price by Simply put a food cost percentage by dividing it with food cost first or should I get my food percentage by putting the price I wanted to sell for per person? Example; I got the total amount of food cost then I use Food cost percentage that I put by myself such 38percent divide with the food cost per portion to get the selling price?
thank you
david pittman (1 year ago)
Dumb question, does the cogs beginning inventory count what's portioned out? Like let's say I purchased a case of french fries that come in 4 separate bags in the case. I then weigh and portion out the fries. How do I account for that? I mean how do I account for the portioned fries out of each individual bag? How far do I break it down?? HELP!!
Edwin Maldonado (4 months ago)
Remember WHY you're doing this. To see if theres overspending or underspending in these areas. Break it down into how little you can order it by. Usually you cant order by the bag from most vendors. I would go with by the case.
Mayank Nigam (1 year ago)
I would simply take the total weight of French fries (say 20 k.g.) and divide the total cost of uncooked fries (including taxes, say $10.00) with the total weight. Then, I would standardize portion of fries (standard fries scoop, say 100 g.m.) I give out in each order to know my exact base portion cost = $10/20 k.g. = 5 cents per 100 g.m. You should also factor in some wastage/shrinkage - assign some % based on what you observe; it would increase my base portion cost, but that's okay. So, my beginning inventory cost = $10. If I sell 10 orders of French fries on day 1, the value of my ending inventory will be $9.50 and this will be the value of my beginning inventory on Day 2.
David Emmanuel Joseph (1 year ago)
I want to start a place where people can enjoy there food and have a piece of mind,in Kerala, India. I have trying to gather as much knowledge as possible and would be better if I had someone to guide me through. And yes thanks for the videos...
Faruqe Ahmed (1 year ago)
Hello, My question is that when is the food cost suppose to happen?
Lloyd Walters (1 year ago)
What should I focus on when looking to start a burger spot in a small town
Mayank Nigam (1 year ago)
Location with good exposure to foot traffic and easy vehicular accessibility.
mohamed salah (1 year ago)
Can toy teaching me
CookinginRussia (1 year ago)
I've been in the industry since before this guy was born, and I can tell you he is making the classic mistake. This only works for cheap fast food. If you are trying to do a higher level of dining, this is fast track to failure.
CookinginRussia (1 year ago)
Edgar - I found a video that explains one of the main problems in the first 4 minutes. Here ... https://www.youtube.com/watch?v=tXSzkrSKYEc
CookinginRussia (1 year ago)
I can't condense that into a paragraph. The approach is different fundamentally.
Edgar Arenas (1 year ago)
So what about higher dining was missed specifically?
KC Culp (1 year ago)
I see a lot of experts say that labor costs should be 28 - 30% of food costs. However, I never see anyone who can tell me what the breakdown should be between kitchen staff, kitchen management, wait staff and bar staff for a full service restaurant like Applebees, Texas Road House, Olive Garden, etc. Can you help? Thanks
Ryan Gromfin (11 months ago)
If I am not as smart as I pretend than why are you listening or watching and wasting your time replying. If smart is knowing the answer to everything, than call me the dumbest person in the world. Thats right the DUMBEST. How could anybody answer that. Every state has different with min. wage laws, every restaruant pays different, every kitchen preps different. Some buy more and prep less their labor would be lower, some prep more, theirs would be higher. If you restaruant sells expensive wine with huge profit that will thow off you numbers. But I am the dumbest guy in the world, so don't listen to anything I say. After all, you are a CPA you should know this stuff. I am just some dumb chef.
KC Culp (1 year ago)
If you don't know the breakdown between the labor in the kitchen, the bar and the wait staff, then you aren't as smart as you pretend.
KC Culp (1 year ago)
I understand what you are saying. However, there is a big difference between the cost of the kitchen staff and the wait staff. In a full service restaurant / bar there is a big difference between the bar staff and the kitchen staff. As a CPA I can tell you that all full service restaurant / bars that are properly tracking their costs must break these labor costs down between the kitchen, the bar and the wait staff. Therefore, why isn't this information available? Thanks
The Restaurant Boss (1 year ago)
We never tell you that because we don't know. Also, any expert who tells you what your labor cost should be, is not worth listening to. How do they know what your costs should be, how do they know what you make from scratch and who your buy. Those are ignorant statements.... Your prime cost should be less than 60%. I don't care if your labor cost is 50% and your cost of goods sold is 10%, just keep prime cost below 60%
Christopher Willis (1 year ago)
This information is golden... Thank you!!!
huang shi shan (1 year ago)
Can you tell me what is beginning and ending inventory ?
The Restaurant Boss (1 year ago)
The value of the stuff on your shelves.
Ihuoma Nnadozie (1 year ago)
thank you for lecture,can i you the formula to cost bakery
ZWATER1 (1 year ago)
The Restaurant Boss (1 year ago)
Your Welcome
Chef Rahul Chef (1 year ago)
Restaurant and food Startup Design Staff Training New recipe creation Multicuisine food practicals Kitchen setup Equipments & Fittings etc.-7023335705
The Restaurant Boss (1 year ago)
You can schedule a call with me here (about halfway down the page) https://therestaurantboss.com/start-here-a/
Mazhar Zarif (1 year ago)
you are deserving for subscription
The Restaurant Boss (1 year ago)
Thanks Mazhar.
willjp (1 year ago)
thank you this is so helpful
The Restaurant Boss (1 year ago)
You are very welcome.
Aashpreet Kaur (1 year ago)
Get It Now button is not working on your website........!!!!!!
NS narayan (1 year ago)
I am an accountant n now running a restaurant whatever u have taught is like COGS all tht we learnt in our 11 th grade theoritically sounds great practically its very difficult to arrive at plate cost different dishes have different margins how u gonna makeout how much ingredient u used in every dish only average cost can be calculated.In financial management we get to know all this.Give explanation with specific figures and items.You say opening stock is last year closing stk it has to be nodoubt..
Ajay Chinoy (1 year ago)
Pawizah Matnor (1 year ago)
thank you for sharing. may i know about how to track the raw materials such as vegetables and condiments? it is because these items do not come with packaging like beers and wine. thanks
Lynette Foxen (1 year ago)
I'm a server who had been dedicated for 18 yrs to a growing company since we were just half a store in downtown Mpls. At the end of May I was fired by a newer (1 year) GM whom I consider to be a "Trophy Hunter". 15 yrs ago I had been promoted by the owner after being absent for a month because she could see all of the FOH work that was not being done due to my absence. A few years later we gained a corporate headquarters, and the tipping/management rules changed, so I ended up declining a FT management position in favor of sticking to the movement of floor action and customer interaction that I prefer. I was considered a "Trusted Employee" and I did remain an avid cleaner and on my own time created lists that all FOH employees were to adhere to up until the end, though this new GM never bothered to print or enforce any of them, and I spent the last year doing both basic and deep cleaning by myself. It's a very long and disheartening story about being abandoned by the entire company after dedicating half my life to their successfully growing brand, but I was in the end fired for calling in 3 and being minutes late. I was favored by Unemployment as unjustly terminated but I am having an incredibly hard time even wanting to return to the Industry. My weekly checks are nowhere Near enough to raise a child on alone, so I have been doing everything I can to uplift my spirits and remind myself of what it was that I enjoyed so much about this business. I have training in both BOH and FOH, but serving is the most lucrative for the qualifications that I have. Anyways, being in true YouTube form, one video lead to another and here I am at the end of 3 of your very well put together tutorials that have very little to do with the realistic opportunities that I am seeking-which is a serving job that I can both benefit from and contribute to . (I apologize for the ramble, it's part of my healing process, it appears.) I just wanted to stop in and thank you for the services that you are providing for those who Can realistically open new shops, and the encouragement and logistics that you are supplying for those who are apprehensive about doing what it takes. What spending time with your videos has done for me is to remind me that I have extensive knowledge of the industry, and I have A Lot to offer my next employer. My last job may have chosen to protect one of their GM's over me as an almost 2 decade long dedicated employee, even though our management turnover had been unhealthily high at our location (can't keep one at any level for more than a year for the past 5 years), and I have literally heard nothing from those I have considered work family. It's been very hard to not take deep psychological issue with both the allowance of termination and the sense of abandonment, but watching your tutorials has reminded me of my true worth. That is most unexpected and welcomed. Thank You Very Much for that, Ryan! It's invaluable to me right now!
Derrick Kinoti (1 year ago)
Hey Ryan...wanted some detailed info please....Should the food cost calculations of a plate entail fuel, and other costs to make the plate or does is it only entail the cost of ingredients on the plate? Thanks
vidaripollen (1 year ago)
great work.
Jenny Akhara (1 year ago)
good day. i would like to know 1st of all how do i do a daily inventory of the food and drinks. the drinks are a lot simpler than the food. how can i do an inventory of the food that was sold daily. for example in jamaica we sell saltfish fritters, how do i do an inventory at the beginning of the day and then at the end of the day to keep track of the fritters that were made and sold
Mayank Nigam (1 year ago)
Jenny: Hope you got your question answered. If not, the first step is to get your recipe standardized, meaning knowing the exact amount of each ingredient used in the recipe and keeping that amount consistent. Once the recipe is standardized, you will get a good handle on how much raw material (ingredient) you used from your inventory to prepare a batch of fritters. Another important point is getting your recipe cost (for e.g. saltfish fritters) down to dollar and cents. You can calculate unit cost of each ingredient (and therefore recipe) and know the exact amount you are spending on inventory. By the way, don't forget to factor in "food shrinkage" in recipe costing.
NS narayan (1 year ago)
Jenny Akhara very intelligent n practical question
Fiona Mackenzie (1 year ago)
That's really helpful initial information when looking at a Café model as I'm struggling to understand the owner's asking price for a business whose turnover is less (significantly) on actual accounting information than as described on the agent's advert.  Also I cant work out her food costs so I need some formulas to help.  I'll be visiting your website very soon.  Thanks.
Steven Rook (1 year ago)
Thanks for the great videos. I looked for the Download button as presented in the video. Can't find it. Where can I get this download? Thanks
The Restaurant Boss (1 year ago)
There is a link in the text description that takes you to my website. But here you go...http://therestaurantboss.com/
FoodCst LLC (1 year ago)
This is a great video from Ryan... we built a tool to help restaurants compare their food costs from vendors as well. Let us know if we can help.

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