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About Rick Dudasik
Expertise
I can answer questions relating to most areas of the restaurant industry including: starting a restaurant, design, food costing and pricing, site selection, staffing, training, equipment, profit and loss questions, sales training, recipies and many other areas of the industry. I have been in the industry for thirty years and have experience in fast food management, multi unit management, casual dinning management,and ownership. Have helped open over fifteen units throughout the United States.

 
   

You are here:  Experts > Business > Small Business > Running a Restaurant > Regarding Food Cost and Multi Outlets

Running a Restaurant - Regarding Food Cost and Multi Outlets


Expert: Rick Dudasik - 4/5/2008

Question
Dear Rick,
If you had a restaurant that had 3 seperate Food Revenues such as a Main Restaurant Menu, Private Cooking Classes and VIP Private Dinner Menu such as a mini function, and Since all 3 activities will fall under (1) Food Cost eventually after your monthly stock take as well have 3 seperate Cost of Gross Sales Percenages, HOW would you go about breaking down the 3 seperate percentages to get 1 concrete percentage? I am a humble cook. Hope you can assist.
Regards,
Keith

Answer
Dear Keith,


Unless you were able to keep the food used for each revenue area seperate, you could not get a "food cost" for them seperately.

You would need to know (through inventories)how much food was used for each of the three areas and also the sales generated by each of the three areas.


To get the combined cost of sales, take the total value of all the food used and divide that by the total sales generated.

Rick

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