So it cost me $2.88, and if I wanted to charge $8.71 my gross profit would be $5.83.. Stupid question for a young guy but how would I figure out the food cost...Anyone can help?
Here is a great article that can help you figure this out: http://smallbusiness.chron.com/calculate-food-cost-restaurant-39551.html
I hope it helps.
This is super easy...to figure this out you do this super easy math it will tell you the food cost percentage.
You take the food cost
so in your instance 2.88 and divide it by the price you want to charge for it, or the menu cost
for you it is 8.71
the result is your % 0.33 or 33%
you can check this by remembering that your menu price x the food cost percentage will give you the food cost amount.
so...8.71 x 0.33=2.88
you can use this math to determine the menu price of anything you want to produce, as well as determining how much you can spend on a particular item if you are charging a set price for it in order to stay within the boundaries of your budgeting food cost percentage.
For instance, if you know you are making a club sandwich, and the menu price of that sandwich is 7.75 and your food cost percentage is supposed to be 33%,
7.75x.33=2.5575 so round that up to $2.56
your club sandwich should cost you no more than $2.56 to make from your raw ingredients.
If you want anymore help with this feel free to email me
Hope it helps.