How much should COGS be for a restaurant?

How much should COGS be for a restaurant?

The Food Service Warehouse recommends your restaurant cost of goods sold (COGS) shouldn’t be more than 31% of your sales . While fine dining restaurant COGS may be a bit higher due to more expensive food costs, pizza shops should aim for the low to mid 20% range for COGS, having lower operating costs.

How do you do a food cost sheet?

How to calculate food cost percentage

1. List all the food supplies you received at the start of the week. …
2. Add together the dollar value of each item. …
3. Track your purchases. …
4. Take inventory again at the beginning of next week. …
5. Add together total food sales per shift.

How do I calculate food cost in Excel?

How do I make a restaurant inventory list?

How to Take Restaurant Inventory

1. Create a table. Start by creating five rows on a restaurant inventory sheet or in a customizable inventory management program. …
2. List items. …
3. Add measurement units. …
4. Count or measure all items. …
5. Insert the unit price. …
6. Calculate total cost.

What do restaurant COGS include?

For restaurants, cost of goods sold is the total cost of all the ingredients used to make menu items, right down to the garnishes and condiments. As a general rule, roughly one-third of a restaurant’s gross revenue goes towards paying for COGS.

What is a good COGS to sales ratio?

As a general rule, your combined CoGS and labor costs should not exceed 65% of your gross revenue – this would be a major inventory mistake. However, if your business is in an expensive market, you should aim for an even lower percentage.