quick foodcost question

Discussion in 'Professional Chefs' started by whiskytango, Mar 29, 2015.

  1. whiskytango

    whiskytango

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    food cost= $1

    labour is 40%

    overhead 18%

    can i just +58% to the $1 on my calculator to get a selling price?

    or would that just give me a minimum without profit?

    thanks, brain hurts.
     
  2. chefboyog

    chefboyog

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    Well, that does hurt the brain thats for sure.

    Short answer; no.

    I'll try to help without compounding the agony too much.

    With a basic 1$ FC you would have a sales price of 3$ just to have a 33FC%. ( industry standard bad food cost)

    $1.58 Sell Price would give you a (1/1.58) 63% FC. Not good.
     
  3. chefboyog

    chefboyog

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    PS;
    labor and overhead are usually expressed as % of sales, not food cost. so the answer to question 2 is no also.
     
  4. chefedb

    chefedb

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    Labor and overhead have nothing to do with food cost. Why? Because they are not food.
     
    Last edited: Mar 29, 2015
    greg likes this.
  5. whiskytango

    whiskytango

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    hah, took a break from it all for a bit and i see what you guys are saying. Thank for being nice about it.

    A while ago i was told to simply take the cost of the item and X 3.3. Is this good enough, it looks to easy and straight forward to me.

    PS. after 15 years as a line cook and now finished a local cooking program, i landed a head chef job at a nice 40 seat restaurant so i am relatively new to this side of the game.

    There are menu changes coming for the summer and i was wondering if that formula is good enough to find a sale price?
     
  6. roger that

    roger that

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    Don't forget to figure in fluctuating item prices. Seafood, beef and produce costs can be highly volatile at certain times of the year. Hopefully you have the freedom to tweak prices regularly. I know some places like to update only once a year or longer.
     
  7. whiskytango

    whiskytango

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    thanks for your info,

    we do about 2 updates a year im told.
     
  8. ssirianos

    ssirianos

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    To find the better selling price you should do:
    1) find the cost for the food(inclunding the food suplies,labor cost from the cooks to the waitres and the cleaners)
    2)you need to find whitch other expences you need to cover(taxes,rental,advertising,service for machines,etc)
    3)find the cost for electricity,incurance and everything else
    4) and finally the profit that the bussines looking for.
    Ask them to tell you and see the historic from the last year to help your self.

    There is a formula:
    The total of ... 1)food and drinks cost
    ...2)labor cost
    ...3) all other costs (all)
    ..4) profit
    Should be 100% which represent the salles