How do you calculate monthly food cost?

How do you calculate monthly food cost?

To calculate your food cost percentage, first add the value of your beginning inventory and your purchases, and subtract the value of your ending inventory from the total. Finally, divide the result into your total food sales.

How do I calculate food cost in Excel?

What is food cost formula?

The food cost formula is: Food Cost = (Beginning Inventory + Purchases – Ending Inventory) / Food Sales.

How are food cost sheets calculated?

To calculate the ideal food cost, first determine the food cost of each menu item. Then multiply the cost of each menu item by the number of times it was sold in a given period of time. In other words, you multiply by the sales mix.

What is the easiest way to calculate food cost?

To calculate your food cost percentage, add the value of the inventory at the beginning of the week to the value of your purchases made during the week. Then subtract the value of your inventory at the end of the week. This number — your food costs — is then divided by your total food sales.

What should my food cost be?

What is a good food cost percentage? Most restaurants across the industry aim for a food cost percentage between 28 and 35%. That said, every restaurant is unique — a lower food cost percentage may still drive profits for a quick-serve restaurant, or a restaurant located in a small town.