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Casual Articles - Ideal or Real Food Cost in the Restaurant Business
When starting up a business, there are some important legal matters that you’ll have to deal with, no matter how much you’d love to just dive in and get started. However, if you neglect these legal steps, you’re going to find that maintaining the business down the road becomes much more difficult, and in some cases, impossible. It’s in your best interest to take these legal aspects seriously and get them sorted out as soon as possible when starting a business.1) Develop a Strategic
29% Food Cost, That’s Great
Yes, 29% food cost isn’t bad, but is it the best thing for
Shopping is an experience for the senses: the colors, the textures, the lighting, but ultimately it is the act of shopping that people enjoy. The enjoyment a person gets from shopping comes from the emotions and release in endorphins that race thought a person’s bloodstream as they purchase that new sweater or flat screen television. It is not the purchase of a box of cereal or dish washing detergent that excites us; it is the purchase of those extra things, things that are by most stand
Banks Use Dollars, not Percentage Points
One thing I am quite sure of is that banks do not accept percentage points as deposits, believe me I’ve tried! For some reason the teller just looked at me dumbfounded then just started chuckling. Matter of fact she had so much fun with it she showed the teller next to her who responded in much the same manor. I didn’t find the humor in it since I had bills to pay, product to buy, and employees wanting their cash too. To rectify the situation I cowered to the pressure and made out a revised deposit slip using their required dollar standard.
So if you can’t deposit percentage points why do most restaurants use this as their key focus goal? Shouldn’t the establishments focus on dollars instead? Your darn right they should.
A Higher Food Cost Doesn’t Mean Theft or Waste
It’s the end of your period and the accountant just brought in the p&l. A quick scan shows your food cost is 35%. What! The first thought that runs through most operators and managers minds is we have a theft or product waste problem. Well, that may be true, but before you go running to the staff and start ranting and raging you have to find out if that is the truth. You may very well have to eat those words after you get through this article. Matter of fact they may need to be praised instead.
What Is Ideal Food Cost Then?
Well let’s take a look at what the real food cost value is and how it is divided. To compute real food cost you take the cost of the product you needed to produce the food and divide it by the sales revenue of that food. You can compute the food cost for an individual plate, or over a specific period of time. For example if it costs you $3.50 for the product and you sell the item for $12.00 your food cost is $3.50/$12.00=0.2916 or 29.16%
29% Food Cost, That’s Great
Yes, 29% food cost isn’t bad, but is it the best thing for
Links are one of the most convenient features of the internet. The ability to go from website to website and land exactly at the information you are looking for is like opening a book and getting the page you need every time.If you can anticipate the information that your event participants need and point them directly to it, when they need it, you will get more registrations and make registering and attending your event more enjoyable and beneficial.Before we get to a list o
So if you can’t deposit percentage points why do most restaurants use this as their key focus goal? Shouldn’t the establishments focus on dollars instead? Your darn right they should.
A Higher Food Cost Doesn’t Mean Theft or Waste
It’s the end of your period and the accountant just brought in the p&l. A quick scan shows your food cost is 35%. What! The first thought that runs through most operators and managers minds is we have a theft or product waste problem. Well, that may be true, but before you go running to the staff and start ranting and raging you have to find out if that is the truth. You may very well have to eat those words after you get through this article. Matter of fact they may need to be praised instead.
What Is Ideal Food Cost Then?
Well let’s take a look at what the real food cost value is and how it is divided. To compute real food cost you take the cost of the product you needed to produce the food and divide it by the sales revenue of that food. You can compute the food cost for an individual plate, or over a specific period of time. For example if it costs you $3.50 for the product and you sell the item for $12.00 your food cost is $3.50/$12.00=0.2916 or 29.16%
29% Food Cost, That’s Great
Yes, 29% food cost isn’t bad, but is it the best thing for
These social and destructive insects live off wood, decay and dead leaf and plants. Although there are over three thousand species of termites, there are three main groups called the subterranean, Formosan and drywood termites. These groups of termites have many different varieties and live in different parts of the country. Knowing the type of infestation you have is vital to eliminating your home of an infestation.Drywood TermitesThis termite infests drywood and is a bit bi
A Higher Food Cost Doesn’t Mean Theft or Waste
It’s the end of your period and the accountant just brought in the p&l. A quick scan shows your food cost is 35%. What! The first thought that runs through most operators and managers minds is we have a theft or product waste problem. Well, that may be true, but before you go running to the staff and start ranting and raging you have to find out if that is the truth. You may very well have to eat those words after you get through this article. Matter of fact they may need to be praised instead.
What Is Ideal Food Cost Then?
Well let’s take a look at what the real food cost value is and how it is divided. To compute real food cost you take the cost of the product you needed to produce the food and divide it by the sales revenue of that food. You can compute the food cost for an individual plate, or over a specific period of time. For example if it costs you $3.50 for the product and you sell the item for $12.00 your food cost is $3.50/$12.00=0.2916 or 29.16%
29% Food Cost, That’s Great
Yes, 29% food cost isn’t bad, but is it the best thing for
If you have ever simply watched people at work you will find that many often come in late or miss work entirely for days on end. We may be able to draw a connection in our reasoning that says all these people showing up 10 minutes late can add up to lots of lost revenue for the company. The problem is how to control attendance issues and still treat everyone fairly?A CCH study on unexcused absenteeism indicates that 83% of employers feel that unexcused absenteeism will continue to r
What Is Ideal Food Cost Then?
Well let’s take a look at what the real food cost value is and how it is divided. To compute real food cost you take the cost of the product you needed to produce the food and divide it by the sales revenue of that food. You can compute the food cost for an individual plate, or over a specific period of time. For example if it costs you $3.50 for the product and you sell the item for $12.00 your food cost is $3.50/$12.00=0.2916 or 29.16%
29% Food Cost, That’s Great
Yes, 29% food cost isn’t bad, but is it the best thing for
Are you interested in giving the gift of an aromatherapy gift basket? Although aromatherapy gift baskets are ideal for just about anyone, they make the perfect gift for women. If this is your first time buying an aromatherapy gift basket, you may be wondering more about them, namely what may be included in one. If you are, you will want to continue reading on.When it comes to examining aromatherapy gift baskets and what the contents of them may be, it is important to remember tha
29% Food Cost, That’s Great
Yes, 29% food cost isn’t bad, but is it the best thing for the restaurant? Let’s take a look at sample full service restaurant. Looking at a few of their menu selections we have a chicken dish which is on the menu for $15.00, steak for $19.00 and a steak and lobster dish for $28.00. When we look at the cost side the chicken is $4.00, the steak $7.00 and the steak and lobster $12.00. We do our food costs on these to come up with the chicken dish running a 27%, the steak 37% and the steak and lobster a 43% food cost.
It’s pretty clear, if you want to run below that magical 30% food cost number, ell chicken! But, as I said when we started the bank doesn’t like percentages on the deposit slips, so convert them to dollars. Okay, since they sold a chicken dish for $15.00 and it cost them $4.00 that’s easy, $15.00 - $4.00 = $11.00. Are they happy now? They have their 27% food cost, and banked $11.00. All great until someone tells them of their error. Sure they ran a nice food cost, but they could have banked more money. How? By selling either of the other dishes. The steak, which cost them $7.00 to produce and sold for $19.00 would have banked them $12.00 and the steak and lobster would have brought in a whopping $16.00.
If it were me going to the bank to make the deposit I would much rather be depositing $16.00 for the steak and lobster verses the $11.00 for the chicken and would take the associated 43% food cost with a smile. So, next time your actual food cost numbers come in run your ideal food cost numbers to compare before you fly off the handle with your staff. The difference between your real and actual food costs is where any associated problems can be found with respect to theft or product waste issues.
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