Food Costs vs. COGS

Discussion in 'Professional Chefs' started by rosemary1028, Feb 2, 2015.

  1. rosemary1028


    Likes Received:
    Professional Chef
    Hey All,

    First time poster.  I've been trying to understand what I should consider a Food Cost and what should go into my General COGS.  From what I understand a Food Cost should be anything that 'GOES OUT WITH THE FOOD'... So that also includes napkins, plastic ware (for to-go), etc. but by that account near everything is COGS... IDK, something doesn't sound right with that. 

    Second part.  Should I be benchmarking my percentage of COGS or food Costs or both? For years I've just lumped everything into COGS.. if your %COGS is 35% then what relevance is the food cost % (thats the thought I often have)?  However, I'm starting to rethink this strategy.

    I know the industry average for COGS is around 30% but what is the industry food cost % average? IDK, I'm just trying to understand the relationship a little bit better.

    I own 2 successful (12 years and going) busy restaurants and catering company, but I'm always trying to get better.  

    It seems like an incredibly daunting task to go through each invoice and calculate out what is a Food Cost and what is a COGS...