What goes in your food cost

Discussion in 'Professional Chefs' started by Thyme2cook, Jun 20, 2018.

  1. Thyme2cook

    Thyme2cook

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    So we have a new kitchen manager. The one was let go because supposedly he had a 50 percent food cost although owners didn't like him but whatever. I know he order heavy and many things so it was high I'm sure.

    One of the owners just does a simple food cost, looks at the amount spent each week or month and divides it by the total food sales. We costed it out this week and it was like 34 percent so not bad. But does he factor in other non related food items. Should I factor in the dish soap and chemicals, napkins, olives and cherries for the bar that the kitchen do not use or even the cocktail napkins we order that bar strictly uses. If I factor in everything I order then my cost is high. So please tell me should how you guys go about it. Thank you.
     
  2. phaedrus

    phaedrus

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    Generally you take out chemicals and paper- food cost should just be food and consumables as a rule. It's also vital to take inventory to see what's on hand. After all, you purchased X amount of food and had Y amount of sales, but not all of the food was used. You need to subtract ending inventory out to get true cost of food.
     
  3. hrmn

    hrmn

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    Dish soap and napkinds are not food. Food cost is simply the cost of ingredients to make a dish (or all your dishes and the cost of each dish is then added up). Those other items are considered part of operating costs. Both food cost and operating cost will help you determine how to price your food for customers.

     
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  4. foodpump

    foodpump

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    Re: Bar cherries and bar olives. If those items go directly to the bar, and the kitchen does not use them, you should get a credit for them, or not put them on the kitchen inventory. Same with limes and lemons. In a perfect world the bar would order them separately. Bar sales are not food food sales.
     
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  5. Pat Pat

    Pat Pat

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    Food cost is just for food ingredients, that's it. Everything else go into their respective costs.
     
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  6. 21TonyK

    21TonyK

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    I'd check and see how your boss does it and if you don't agree with their method work out a method you are both happy with.

    Personally I calculate the cost of food from ingredients only but also record non-food ancillaries separately, food wrap, piping bags etc etc

    I can then give a cost per meal and a cost per meal with associated costs. For me, heat, light, power and staff costs are met centrally.

    I also record all chemicals, PPE, uniforms etc and have another cost centre for new equipment. Again, fortunately I don't have to factor in repairs or replacements.

    It's important that you and your boss both come up with similar costings and end figures else there will be mistrust and arguments which may be a factor in the last kitchen managers departure!

    As already mentioned, when you cost your food by ingredients you need to know your opening stock for the period, purchases and closing stock, add the first two and subtract the last tells you what you have used and you can cost it from that.

    DO NOT try to fool yourself or your boss by counting stock that will spoil or go out of date before it gets used as part of your closing figure. That can come back and bite you when you have to account for £/$100's that have been written off.

    Oh, and definitely don't include stocks that do not contribute to your sales income, ie. the bar.
     
  7. kronin323

    kronin323

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    There are many ways to build a restaurant P&L but factoring non-food items into food cost is not a best practice.

    One way, for Cost of Sales you have food cost (/ food sales for cost%) and bar cost (/ liquor, beer, and wine sales for cost%), total CoS = food+bar cost (/total revenue for cost%).

    Then Labor Cost, you have BOH, FOH, Training, Payroll Taxes / total revenue for cost%. Total revenue - CoS - Labor Cost = gross revenue.

    Then you have controllable expenses and fixed expenses. Things like paper and cleaning supplies, office expenses, linen, replacements, repairs and maintenance, and utilities fall under controllable expenses because the amount you spend varies and can be managed to one degree or another. While fixed expenses would be things like rent, insurance, equipment lease, and depreciation.

    Gross income - controllable expenses - fixed expenses = taxable profit or loss.
     
  8. kronin323

    kronin323

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    Also, to be more specific on the thread title question, we calculated food cost from purchases of meat, seafood, produce, bakery, dairy, dry goods, and non-alcoholic beverages. (Formula is beginning inventory + purchases - ending inventory)

    "Bar food" i.e. cherries, olives, sweet&sour, grenadine etc would go under bar cost. But something like limes which were heavily used by both the kitchen and the bar we didn't bother to divvy up, they just went under produce and into food cost.
     
    Last edited: Jun 21, 2018