Food Costs Formula: How to Calculate Restaurant Food Cost Percentage

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What is the food cost formula and how can you use it to calculate your restaurant's food cost percentage. I will explain everything you need to know about food costing in this video.
As a restaurant owner, manager, operator, or chef, you have to know how to calculate your food cost so you can lower expenses and increase your profits.
DOWNLOAD THE FOOD COST GUIDE:
therestaurantboss.com/restaur...
LEARN MORE ABOUT BACON:
clickBacon.com
At The Restaurant Boss, I post weekly training tips for restaurants and bars. Tips range from food and labor cost to restaurant-specific marketing and management. I welcome you to check it out and sign up for my FREE video training series.

LET’S CONNECT!
Facebook - / therestaurantboss
Twitter - / ryangromfin
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www.therestaurantboss.com
Please be sure to like this video and leave your comments or questions below as well as share this video with your friends, co-workers and other restaurant owners, managers and operators. I promise to respond to every comment or question!
Thank you,
Ryan Gromfin
The Restaurant Boss
TheRestaurantBoss.com

Опубликовано:

28 янв 2014

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Комментарии : 791

@beatazienko960 5 лет назад

I'm so glad I found your channel! Having no experience or training in starting food businesses, your videos are an information goldmine so thank you so much for making them.

@Therestaurantboss 5 лет назад

Glad they are helpful! Be sure to take a look at my website as well - lots of free resources and private coaching options.

@duneshiamyers3391 2 года назад

@@Therestaurantboss has been in a long long and long term

@eranovita2734 2 года назад

Thanks a lot

@diseyendiomu7382 6 лет назад

I really needed this information, thank you for your help with this lesson.

@TheWaitersAcademy 4 года назад

Great job, Boss! I just subscribed. So many restaurants fail because they don't this exact info you have on your channel! I hope everyone is going to survive these hard times and get back to normal business! My people ( the waiters ) suffer as well as the restaurant owners right now! We are all hoping for a quick recovery! Keep up the good job!

@Therestaurantboss 4 года назад

Thank you and I wish you all the best in your restaurant's road to recovery.

@MarketingFoodOnline 6 лет назад

great info I to am in the food business selling online but costs are a factor we consider as well

@evaklugmann4422 7 лет назад

Great job man. One thing, is it smart that Im 19 and I already knew how to control inventory and calculate usage, cost and sales at such age.. Not really, where I live; Saudi Arabia. I worked at McDonald's since I was 17 until recently , I followed my vision and set a goal, opened a very special food truck .. The speciality within this food-truck you can say is that because of lack of food trucks in my home place. I gained $22.776 for my first month. All of this is really a big thanks which goes sincerely to McDonalds. It taught me everything. Ive been a part of this empire a great time, made hard to be sure and didn't waste a second on trying to find what customers need , their demands , and lastly fix them with a big smile on their face. Cannot mention all the valuable things I gained from the great business.. I really hope from everyone to widen their perspective and see the valuable secrets and reveal it , a very great chance you could be a great business man one day.. good luck to everyone!

@Longevityosf 2 года назад

Awesome stuff Ryan Gromfin! You do speak like a Boss and your formulas and style is simple awesome, love the fact you are straight to the point and no music!

@Therestaurantboss 2 года назад

Thank you so much! Food costing can be made too complicated. I definitely like getting to the point and making it easier. Glad this video helped you.

@NaNaNandah Год назад

Thank you for the great information. I know how important it is to have a good foundation and you tackle every topic in a very objective way.

@Diogene1936 5 лет назад

Grande! Ryan, you really seem to know the hospitality industry. When I arrived in Australia, I was shocked by the silly mistakes of the Restaurant and Cafe owners.

@Therestaurantboss 5 лет назад

Years and years of experience PLUS years and years of study. I will also say some common sense makes a huge difference.

@kranthikumarsatuluri 8 лет назад

That was cool and important info for further stages of Restaurant Profession and Business. Wish you all the very best And Thank you so much.

@Chanfabulous27 5 лет назад

very helpful...I'm so intrigued!

@kaymarto3354 3 года назад

Been operating a restaurant for year now, but i never followed any of this, now that i have this info, i am trying to put the guidelines in place, thanks alot for this

@Therestaurantboss 3 года назад

So glad the video was helpful! If you need more help setting up systems for your restaurant, I recommend checking out my SCALE program at scalemyrestaurant.com.

@llewinidas 5 лет назад

Stoked to find your youtube. We are just starting to gather data on starting up a restaurant/retail combination location similar to MOX Boarding House in Bellevue, WA, and your videos are extremely helpful!

@Therestaurantboss 5 лет назад

So glad that we are able to help! Good luck and let us know how it goes.

@janisebolden-jackson6443 6 лет назад

Contemplating opening a small restaurant in the near future; my life long dream. Really appreciate the information!

@hectorman8709 3 года назад

I am thinking about a new type of restaurants: eating-spots in eating-spots, food keeps changing, chefs also rotate this is opposed to current restaurants, thanks to this rotation of food and chefs, eating-spots are more powerful than restaurants, along with that, there is an app, people vote for the food that will be cooked in the next days menu is influenced by the live input of the people via an app

@firenicez 8 лет назад

I've watched a few of these types of video's but by far this is my favorite. Thanks so much for the precise information.

@Therestaurantboss 8 лет назад

+firenicez you are very welcome.

@catapurin 2 года назад

Thank you so much !! My parents have a restaurant and they’d actually teach me but i just feel like i need to learn it myself and thankfully i found your channel :))

@Therestaurantboss 2 года назад

Awesome! You should also check out my free toolkit that's filled with tons of free worksheets, templates, guides, etc. www.therestaurantboss.com/toolkit

@Cienfuegos85 6 лет назад

Thank you for this. Its hard to run a place but glad to see there's help

@nokwandamathenjwa4725 Год назад

Very happy to have this channel. I my case i serve different menus daily so how do would i value my inventory left from the previous month to make it the opening stock for the new month

@Therestaurantboss Год назад

We're happy to have you here! The fact that you serve different menus each day doesn't change anything. Ryan doesn't teach inventory for most operators but it's as simple as establishing a value for everything at the beginning of the month and counting it at the end of the month. The ending inventory of one month is the beginning inventory for your next month. Hope that helps! -Dawn, Team TRB

@kushal4484 7 лет назад

hey I'm planning to start a takeaway only restaurant, any tips about that in terms of cost, mistakes to avoid etc. would love to see a video about that. and also great work there, you're really helping a lot of newbies, thumbs up!

@cehinton 4 года назад

Great video as usual, Ryan. I did not see the guide mentioned in the video on your website however. It may be b/c it is now several years after the vid was created, so no worries.

@Therestaurantboss 4 года назад

Hey Christopher! You can find the document here: therestaurantboss.com/restaurant-food-cost-target/

@poserrider559 4 года назад

Glad i seen this video , i had noticed one thing in indian restaurant that they had vast menu card but the food items in main course are more the same , but pricing varies as they put a tag on a dish like "special nonveg or Paneer tikka , butter chicken masala etc. In reality they put same vegetable stock and gravy in all dishes but charge higher for some dishes despite they taste the same.

@pbsnyderman 3 года назад

Hi Ryan, Great video, as always. If a restaurant sells packaged / bottled salad dressing, do you choose to include the cost of the bottles and labels in COGS as a category like, COGS - Packaging or do you put the packaging costs in the same account as, e.g., straws, to-go bags, and paper napkins? thanks, and happy 4th!

@titusnangolo1511 6 лет назад

This presentation is very very much informative, keep it up each one teach one.

@kimnikkolpatton6926 6 лет назад

Ryan, I'm opening a Kosher Deli and HealthFood Market. Could I use the generic COG calculation worksheet to flesh out my health food market sales percentages? I understand preparation costs are factored in COG formulation not shelved products.

@johnsanchez2714 4 года назад

Restaurant Boss, My students really enjoyed your teaching style and are making their journey in culinary arts much easier. Thanks.

@Therestaurantboss 4 года назад

I love to read this and happy to be a virtual mentor through my videos.

@dametriusmunerlyn6317 10 лет назад

I am a recent graduate from culinary school and I am planning on opening my own restaurant in the near future. I just wanted to say thank you for this video and I will be visiting your site.

@RyanGromfin 10 лет назад

So glad you enjoyed the video... let me know if I can help you with anything regarding your restaurant!

@hectorman8709 3 года назад

@rexcylcataloctocan5012 5 лет назад

Every F&B cost controller must watch! highly recommended. THUMBS UP!!

@Therestaurantboss 5 лет назад

Thank you so much!!!

@platinumemories 8 лет назад

Great video! Exactly what I was looking for. Heading over to your website now. Thanks!

@Therestaurantboss 8 лет назад

Thanks so much for the comment

@heatsvids 6 лет назад

This information is golden... Thank you!!!

@GrandPrizeFitnesAJAY 8 лет назад

thank you....I'm starting a small restaurant in 2016. I am learning as I go so this is excellent advice for me.

@Therestaurantboss 8 лет назад

My Pleasure...

@peibel10 7 лет назад

Ajmal Millar how did it go mate?? i hope business is doing great, best wishes.

@evaklugmann4422 7 лет назад

Ajmal Millar hows it going bro

@yongisevenone1535 7 лет назад

hows your restaurant bro?

@DeliCupLA 7 лет назад

How is the restaurant going?

@erhanozkan6449 2 года назад

Simple, clear and amazing explanation!!! Thank you so much.

@Therestaurantboss 2 года назад

Glad you liked it

@jinxlinwinx7994 7 лет назад

I was wondering if you had any training video's over food cost/sales available to order for training kitchen Management and Staff

@stevenmilford8186 6 лет назад

Thanks for the very helpful, easy to understand overview.

@arunbakshi231 3 года назад

Excellent Video Mr. Gromfin

@Therestaurantboss 3 года назад

Thank you kindly.

@jeremy1409 8 лет назад

Really clear video, thanks ! Any one regarding the costing of coffee breaks ?

@thebarefootgrandma2117 5 лет назад

New area for me as I’ve taken over a 15-acre recreation park that has a snack/coffee bar; this has been very helpful in many ways. Introducing terminology is a good starting place and will be looking at your website. Mahalo Nui Loa from Kauai

@Therestaurantboss 5 лет назад

So glad it's been helpful and good luck! I have coaching options available if you get into a real pickle. therestaurantboss.com/hire-me

@chefjohirkhan8147 9 лет назад

So glad you enjoyed it!................

@sobannegi3532 3 месяца назад

Wow amazing teaching method. Every thing is Crystal clear. Good work Mr boss

@Therestaurantboss 3 месяца назад

Thanks a million -Dawn, Team TRB

@cocob2411 5 лет назад

Hey Ryan Thank you for the video... Sweet and to the point. Keep up the good videos. God Bless You and your family

@cocob2411 5 лет назад

Sorry Best Regards John Barragan

@Therestaurantboss 5 лет назад

You're welcome!

@martyembry51 10 лет назад

I am now a huge fan! This and all of your videos are so very helpful Ryan. Thank you for sharing!

@Therestaurantboss 9 лет назад

Marty Embry My pleasure, thanks for the kind words.

@antonio_xu 8 лет назад

Really good videos man, thanks a lot, im definitely going to try your teachings. Keep up the good work!

@bernadsikawa4353 4 года назад

Can you help number for whatsaup

@hectorman8709 3 года назад

@paperinik69 8 лет назад

Hi, how would you set you COGS goal for different items? Would it make sense to set an absolute margin target instead of a COGS percentage?

@sayeedqurbani3767 9 лет назад

Thanks alot for the detailed video Sir. You are great and you made it so simple to understand. I have also subscribed your Home Page.Hope to get more new learning from you this coming days. Thank you very much again

@zenobiazorachacko1705 7 лет назад

hi Ryan.. to calculate my beginning inventory for my restaurant food cost... do I have to calculate the the amount of fresh vegetable and fruits?

@sholonator92 8 лет назад

Damn you share very valuable information you deserve more subs!! thank you for your great work keep it up!!

@eringromfin5598 8 лет назад

+luis villaescuza , Thank you, happy to help!

@aquilhaider4875 6 лет назад

Steve Vd C

@hectorman8709 3 года назад

@themaxfamily7654 Год назад

Happy to watch this video i ahve been having alot of issues on my food cost lately I WORK FOR MOVENPICK ICE CREAM ABUJA NIGERIA

@miraghatalibzadeh9374 6 лет назад

So clear for all! Respect!

@savitriseelal4691 5 лет назад

thank you sir .great information,this will be very helpful to a lot of people ,doing their own business,thanks again

@Therestaurantboss 5 лет назад

You're welcome!

@lostre2583 5 лет назад

This was great information thank you Mr. Boss!

@Therestaurantboss 5 лет назад

Thank you - glad you enjoyed the video!

@margeauxgoetze7958 6 лет назад

Hi Ryan, what would you do if you start a new restaurant and you have an existing restaurant but you want to transfer some of the stock from the existing place to the new place? where would you add that stock value to your COGS calculation? with purchases?

@jasonharsany2169 9 лет назад

I own a growing food truck biz. Just came across your vids today. Very helpful/inspiring knowledge! Thanks!

@adawait2179 2 года назад

Just subbed I'm a little green to food management. I'm going to be taking a new role and I subscribed to your channel based how informative this video was thank you and can't wait to flood you with questions like you said. I will also be checking out your website here in the very near future. Thank you

@StefaanCodron 6 лет назад

Thanks for all your advise and mentorship, and looking forward in using Click bacon as part of our startup restaurant in Tasmania, Australia

@Therestaurantboss 6 лет назад

We have lots of users in Australia. Let me know if I can help.

@rajita1019 5 лет назад

Thank you so much for posting these videos! I've been wanting to start a restaurant for a while now, and only now have a concept that I really like; but I never took any business classes or anything and have no idea how to bring my vision to reality. I just watched a couple of your videos, and I think this will be perfect to get me started! By the way, Cannabis is about to be legalized where I live, and my concept is a cannabis bar (edibles), that offers regular food and DIY kits. (inspired by DIY Bar in Portland.) If anyone has specific advice for me, please let me know!

@Therestaurantboss 5 лет назад

Glad the videos were helpful and good luck in your adventure.

@bayleeshea8037 2 года назад

Take precautions calculating taxes and legal regulations most cannabis business don’t grow profitable because of how much is taken out

@michelejackson5523 8 лет назад

I really love how you break it down...Thumbs Up!!!!!!

@1NeoSoulChild 6 лет назад

Question... the sba.gov website describes COGS as the cost of materials + labor Should we be considering labor and all materials (disposable) used to serve each plate

@stevenrook7554 7 лет назад

Thanks for the great videos. I looked for the Download button as presented in the video. Can't find it. Where can I get this download? Thanks

@Therestaurantboss 7 лет назад

There is a link in the text description that takes you to my website. But here you go...therestaurantboss.com/

@Ayd2222 3 года назад

I watched this again and I want to give it another thumbs up!

@Therestaurantboss 3 года назад

AWESOME - thank you!

@gmanhi5 8 лет назад

Do I do a stocktake to determine beginning inventory if just opening?

@richardmacklin785 2 года назад

I Know You!! Holy cow I can’t believe I was brushing up on my chef’s math, cuz that was my worst class at JWU and it’s Ryan from my freshman year dorm! Hope you’re doing well buddy

@cateringcoachal 3 года назад

Here is the importance of food costs: - It determines your probability - Lower Food Cost = Higher Profits - Properly Price Your Menu - Optimize your menu - It's not what you spent on food Thank you for sharing this timeless, valuable information and clarity of the formula. It is indeed helpful for every restaurant owner. Kudos to you! 🙌

@Therestaurantboss 3 года назад

Thank you for taking the time to comment!

@uilleanntaff 7 лет назад

Excellent high quality info explained in simple terms well done great vidio

@alyssahinojos3560 3 года назад

You simplified it so well! Thank you!

@Therestaurantboss 3 года назад

Glad the video was helpful and helped to make the numbers make more sense.

@chefmeephree 6 лет назад

Heyyyy….thanks, your info was very informative! Question: Can I use this formula for Private Chef Services and Event Catering, also??

@Therestaurantboss 6 лет назад

Its all the same.

@Xfoot-age 3 года назад

Love these videos

@Therestaurantboss 3 года назад

Thank you!

@excel-tutorial 11 месяцев назад

Thanks a lot for sharing it. It is helpful. As an additional information, I also create a dashboard tool to manage the restaurant. Just copy and paste this following title: Restaurant Management System - Food cost control - Dashboard Tutorial in Excel

@Therestaurantboss 11 месяцев назад

Excel is exactly how Ryan used to do things before he created the software! -Dawn, Team TRB

@masixolelusasa7992 5 лет назад

You are amazing and a blessing to the industry

@Therestaurantboss 5 лет назад

Wow - thank you so much!

@srisulartiningrum7205 3 года назад

Thank u For sharing your Knowledge. F & B really is useful for teaching and references or making journals

@Therestaurantboss 3 года назад

Glad it was helpful!

@vasudevcharan3994 6 лет назад

Thank you so much for being kind and so clear , after few days I have an interview for restaurant manager ( currently I am working as supervisor ) please let me know what they want to know from me . Thank you

@Therestaurantboss 6 лет назад

Ask them what they want you to know.

@octavioflores4642 Год назад

Hey there like your shows question for you how do you determine a food cost budget ? Per period

@niduptshering3845 4 года назад

thank you very much sharing your idea... sir can you tell me how we should setup bar and restraunt.

@Therestaurantboss 4 года назад

Hi! is there a specific question that you have? It is too hard to coach somebody though the entire process via RU-vid. I can answer one question, but other than that, I offer coaching services so we can tailor everything to your business. therestaurantboss.com/hire-me

@maheshmenon7099 7 лет назад

Thanks a lot.. it was great information and learning... put very simply. God bless

@Therestaurantboss 7 лет назад

Thank you.

@jeang8489 3 года назад

Thank you so much for making this knowledge very user friendly.

@Therestaurantboss 3 года назад

You're very welcome!

@mchowdhury827 3 года назад

Thank you ryan for amazing videos

@Therestaurantboss 3 года назад

Glad you like them!

@joeghorayeb2428 4 года назад

Can you please provide me with the link to the video that explains the cost breakdown of the 2.00$.Thanks.

@jersondelacruz9667 7 лет назад

Very helpful video thank you..

@quasymoto212 9 лет назад

This is great dude, I'm writing this all down.

@Therestaurantboss 9 лет назад

Hey Thanks Roland Sylvain , check out the full video series at therestaurantboss.com for a way more detailed look at restaurant financials and costing formulas.

@MarketingFoodOnline 6 лет назад

great info

@marceloc2 8 лет назад

Very helpful!

@igori.9589 6 лет назад

Man I'm gonna open a fast casual restaurant in nyc with your training. This better not be bs.

@Therestaurantboss 6 лет назад

Hey Igor, sorry for the delayed response. I think you can see I am not full of BS dude.

@rubygupta1567 3 года назад

Really nice information

@AlwaysHappy226 2 года назад

Thank you for your great experience and explaination

@Therestaurantboss 2 года назад

It's my pleasure

@kimnikkolpatton6926 6 лет назад

Excellent explanation of equations. Learning so much. Downloading the COG average calculation workbook now. Thanks

@Therestaurantboss 6 лет назад

Your welcome! Hope it's helpful.

@CY3ER 4 года назад

I'm a young restaurant owner. Thank you so much for these videos!

@Therestaurantboss 4 года назад

You are very welcome! Thank you for watching and I hope they are helpful.

@BenSeigal 4 года назад

Excellent video beats others by far

@Therestaurantboss 4 года назад

I appreciate that!

@nisaarahmad4072 8 лет назад

thanks a lot sir could you share for us that what is the main part in restuarant business beginning part 1-business plan 2-financing 3-decoration 4-market

@THICCMando66 2 года назад

Hey! New KM. Do you count Togo containers/utensils as part of food cost?

@jgm81mx712 8 лет назад

NICE VIDEO IT HELPS ME TO LEARN MORE AND DO MY POWER POINT PRESENTATION ON MY RESTAURANT

@Therestaurantboss 8 лет назад

+Juan Garcia-Martinez glad I could help.

@GusStAnthony 7 лет назад

Thanks for the info. Just subscribed.

@pawizahmatnor7509 7 лет назад

thank you for sharing. may i know about how to track the raw materials such as vegetables and condiments? it is because these items do not come with packaging like beers and wine. thanks

@safdarshaik6259 6 лет назад

Sir,in your website do you have detailed analysis of f&b costing.

@carthikblackheart6746 4 года назад

Great learning insights!

@Therestaurantboss 4 года назад

Glad it was helpful!

@benrabahmohamed9657 4 года назад

Awesome video thanks again

@Therestaurantboss 4 года назад

You bet

@chendavid1851 3 года назад

Really Helpful. Thanks very much.

@Therestaurantboss 3 года назад

You're welcome!

@nickhernandez1828 6 лет назад

Hey bud I have been working at a restaurant for so long. Started as a regular Cook moved up to sous Chef, well we are constantly looking for new Cheffs because they keep quitting well I know everything there is in that restaurant. They pretty much put me in charge and I am running the kitchen. In no way am I calling myself a chef because I still have a lot more to learn. Just really started studying food costs and would like to know. What should I do when the Chef didn't have the paper for our last food purchase so I could take a beging inventory?

@xzavier-ic4ox 5 лет назад

thanks for the Great info. I am currently in the process of starting a food truck. this process should work the same right?

@Therestaurantboss 5 лет назад

Absolutely!

@andytv2379 3 года назад

Thank you so much. It helped me a lot.

@Therestaurantboss 3 года назад

You're welcome!

@yourhighness4746 8 лет назад

Thank you very much, excellent information.

@philliprgarcia 5 лет назад

Valuable information. Thank you very much for your knowledge.

@Therestaurantboss 5 лет назад

Thank you!

@Essendon098 5 лет назад

Hy i m shelly i dont know how to make recipe llate cost template from starting plz if you can help me i really thnkfl to uu

@brandonnashadka9458 3 года назад

thanks for the info.

@MrJoelkriss281 8 лет назад

We have new software. I'm having difficulty finding why my seafood shrimp is about 15 lbs off. I have gone thru the p-mix on how much we sold versus purchase. And went line for line on what the servers rung up. Need help on better tracking this item or suggestions.

@misterpayne8368 Год назад

Funny thing is, is that I’m sure that I’m likely one of the only select viewers of this video who’s watching it as to have a quick review for an upcoming Registered Dietitian board exam (which mine happens to be tomorrow 🤣). This’ll likely help to further boost my odds of passing the thing 🤣 This was a pretty informational vid! And of course, I always love seeing that there’s many in the comments who own restaurants, I wish you all nothing but success!

@Therestaurantboss Год назад

Hey, the exam is done now .. how'd it go?? - Dawn, Team TRB