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The Ultimate Guide to Calculating Food Costs
“What gets measured gets managed”
If you want to manage your costs you need to start with an accurate measurement of what they are.
Knowing that your overall Gross Profit (”GP”) was 72% (same thing as knowing that your COGS is 28%) is the basics. Knowing your food GP and your beverage GP is even better. Knowing which 10 menu items drive the bulk of your sales and what the GP of those items is…well now we’re getting into the pros.
Take my friend Scott, he’s doing well and feeling pretty good about what 2025 has in store. Last year they launched their second outlet and it looks like they’ll beat their target year one revenue by 35%!
He’s feeling good, but he knows that 2024 was held together by grit, determination, and desire for it to work…and that he can’t keep up that level of intensity forever. He’s brought us on to help sharpen the pencil, bring some more structure to the operations, and ensure they can keep performing at a high level.
The Ultimate Guide to Calculating Food Costs
Thank you! You should receive your free e-book in your inbox shortly.
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What’s covered in the Ultimate Guide to Calculating Food Costs
How to set a baseline. To get where you want to go, you need to know where you are.
Organize your supplier invoices and ingredient costs.
Use our calculators to help establish your target GPs for all your recipes.
Set your stocktake period, choose which products to count, and do a count.
Bring it all together in our menu report that tracks your actual versus target margins.
Know the Margins, Grow the Margins.
Foodrazor's Ultimate Guide to Calculating Food Costs is designed to let you take control of your costs, set a baseline to measure against, and share some tools to manage your margins going forward.
Want to know your margins, but don’t have time for do-it-yourself?
