 Percentages vs. Contribution
I agree with UniChef. Although, upper management and owners like to look at Food Costs, remember that you can't take percentages to the bank. You take money to the bank. So, look closely at contribution margin. Years ago, I worked for a restaurateur who got too hung up on food costs and was upset when a high-cost item was gaining popularity in the sales mix. I demostrated to him that even though the item (garlic-roast lobster) had a high food cost, its contribution was the highest on the entire menu. Because of the item's high sales volume we were taking more money to the bank than if we sold other menu items.
Are your FOH staff order takers, or sales people? |