Food Cost Percentage: Definition, Calculation, and Optimization
Food Cost Percentage: Definition, Calculation, and Optimization
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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. By dialing in your food costs you can more confidently promote high-pr
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