Food cost
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Food cost
COGS = beginning inventory + purchases - ending inventory. Food cost % = COGS / food sales.
Use food sales in the denominator. Beverage sales belong in a beverage cost percentage, or in a combined figure that you label as combined.
| Line | Amount |
|---|---|
| Beginning inventory | 8,400 |
| Purchases | 11,200 |
| Ending inventory | 7,560 |
| Food cost | 12,040 |
| Food sales | 42,800 |
| Food cost % | 28.1% |
Count what left the shelf
Beginning inventory, plus purchases, minus ending inventory, is the cost of goods. The percentage is that cost divided by food sales for the same days. If the count is late, the percentage is a story about the paperwork, not about the kitchen.
Keep sales in the same bucket
Food sales are the right denominator for food. Total sales pull in alcohol, merchandise, and sometimes catering deposits, and the percentage drops for reasons that have nothing to do with the line. When a report mixes food and nonalcoholic beverages, say that in the label. The National Restaurant Association’s published medians are mixed that way. The guide under this hub walks through the difference.
What this hub holds
The short guide asks what a “good” percentage even means. The calculator opens on the week in the table above. The benchmark page files the association figures with a date and a source.
Guides in this hub
Tools
Calculators that open on a worked example.
FAQ
Short answers to the questions this page is built to settle.
Why not divide purchases by sales?
Purchases jump when a delivery lands. Usage jumps when food is cooked. The count is what makes one week comparable to the next.