Restaurant Food Costing – Cut Costs while increasing Profits
Every restaurant can usually benefit from proper food costing. Food costing is among the most significant elements to make your restaurant more lucrative. Costing your food allows you to have total control of just how much spent on food and enables you to definitely cost your dishes for optimum profit, in addition to the best value for your customer.
Typically, food costs should take into account around 1/3 of the restaurant’s expenses. The food cost together with labor and expenses should account in excess of 2/three of the total expenses. Above that’s the conserve the restaurant will generate. Since food costs are among the greatest expenses for any restaurant, food costing is observed among the how to increase profitability for any restaurant who must generate more profits in which to stay business.
There are a variety of methods for you to evaluate and optimize your food costs. First, this can be done by hand, by completely analyzing your food costs throughout a few months, usually a time period of several days or perhaps a month. Your statistics should then be examined against restaurant industry average food costs to pinpoint regions of expense where your restaurant can improve. Keep in mind that all beverages ought to be incorporated inside your food cost analysis. After that, you ought to have an in depth report of food purchases which were produced in your restaurant throughout the reporting period. After that you can match it up for your food inventory costs for the similar period. You can calculate your overall food cost and then make adjustments for inventory and food costs. For a much more accurate analysis, attempt to conduct your reporting period more than a extended period of time. This will help you to further keep costs down and maximize inventory and overall profits.
A different way to calculate and optimize food costs is by using software. You will find food costing systems, in addition to full scale restaurant inventory and keeper packages which include extensive food costing analysis and reporting. The reporting and calculation is instantly accomplished for you as inventory and purchasers are calculated. Cost Genie is among the leading software programs with this task and it is offered at CostGenie.com.
After you have examined your food costs and inventory, whether by hand or using a software program like Cost Genie, you may make alterations in your company, including standardizing your recipes, evaluating your purchases, minimizing spoilage and making plans to streamline your whole inventory and purchasers process.