Kitchen cost %

Discussion in 'Professional Chefs' started by kleveridge, Aug 5, 2013.

  1. kleveridge

    kleveridge

    Messages:
    4
    Likes Received:
    10
    Exp:
    Professional Chef
    Was just wondering how much percent your restaurant spends weekly on:

    Food cost:

    Kitchen wage cost:

    And how much money you make on sales of food items weekly?

    What would your preferred percentages be and how do you keep your numbers tight so the bosses are happy.

    Discuss
     
  2. lazizaaugusta

    lazizaaugusta

    Messages:
    14
    Likes Received:
    10
    Exp:
    Owner/Operator
    The general rule of thumb is:

    - 30% food cost

    - 30% labor 

    - 30% overhead (rent/utilities, etc.)

    - 10% profit

    Of course, in running a kitchen you want to try and minimize these percentages as much as possible.  
     
  3. lazizaaugusta

    lazizaaugusta

    Messages:
    14
    Likes Received:
    10
    Exp:
    Owner/Operator
    *except profit :)
     
  4. petemccracken

    petemccracken

    Messages:
    3,401
    Likes Received:
    158
    Exp:
    Professional Chef
    Remember, cost percentages are a management tool, nothing more, nothing less.

    In hindsight, a majority of successful restaurants exhibit the 30-30-30-10 guideline, then again, there are not just aq few that deviate, some fairly widely.

    Is a 45% food cost bad or a 20% food cost good? Not necessarily! It depends upon the specific venue, menu, market, etc.

    Once management establishes a target percentage, there are numerous ways to meet the target:
    • Cut waste
    • Change buying sources
    • Portion control
    • Menu management
    • and many others
    Remember, as food cost fluctuates, so does labor. Overhead (rent, utilities, insurance, etc.), on the other hand, varies very little, whether there are sales or not.

    IMHO, food cost + labor cost = cost of sales. Sales-cost of sales = gross profit. Gross profit - overhead = net profit.
     
  5. taniar

    taniar

    Messages:
    11
    Likes Received:
    10
    Exp:
    Professional Chef
    The place I'm currently at is pretty bad, with a food cost around 42%, but the liquor cost is 24% and it's primarily a bar. I keep labor around 28%. I wish I could keep food cost lower, but I'm pinching pennies and keeping the smallest inventory possible. Sometimes you just need to raise prices or change menu items.