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About Stuart Mullis
Expertise
Can answer questions on costs, income statements, back of the house, front of the house,bar operations, nightclub, menu design, equipment and restaurant, design.Will be very candid.

Experience
35 years of hotel Food and Beverage as well as Independent free standing full service restaurant business, and Nightclub.

 
   

You are here:  Experts > Business > Small Business: UK > Running a Restaurant > Food Cost

Running a Restaurant - Food Cost


Expert: Stuart Mullis - 10/8/2008

Question
We are a family law practice trying to determine the true top line sales for a casual dining, no alcohol,restaurant. We have the annual sales to the restaurant from all distributors. What percentage food cost would be considered reasonable? Is there a better approach? Thanks  

Answer
Jim, I am not totally sure, that I understand your question:
What does the law practice have to do with the restaurant?
Is this part of a legal proceeding?

To give you a general idea though most well run restaurant, especially top end, the food cost will be 32-38% of the food sales.

Never ever forget the other cost involved in the restaurant, Labor is a big number. As well as occupational cost (mortgage/rent, utilities,taxes, insurance and licenses and fees)

I hope this helps you, please answer my first 2 questions.

Stuart

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