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Old 06-19-2009, 07:41 AM
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kuan Offline
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Join Date: Jun 2001
Location: Minnesota
Posts: 4,718
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Add up all your purchases for the week and subtract the value of your inventory. Divide that against your before tax sales using just those items you purchased.

So Purchases=$100
Inventory=$20

100-20=80

Sales=$200

Food cost 80/200=0.4 0r 40%.

To cost out your menu items just add up everything you used and divide against the cost of the menu item.

Ingredients=$2
Menu item=$5

2/5=0.4 or 40%

That said, for a small restaurant, it's good to remember that you don't take inventory to the bank.
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