Running a Restaurant/Labor cost

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Question
Hi,

  I was wondering if you calculate the food cost and kitchen labor cost percentage base on the total sales or just the food sales and what is the goal for this?

  Our restaurant does about 50-50 on food and beverage sales and we have been trying to keep food cost below 30% base on calculating olny the food sales and not the total and we are about 34% right now which seems high.

Thanks,

Reza Akhavan

Answer
Reza, Thanks for the question -
I'm unable to give you a long or short answer at the moment as I'm only on a quick break from a three day client conference  - Please try the following links - as I'm sure they will address your question with appropriate depth -
http://www.starchefs.com/cook/business-tips/how-to-calculate-food-cost  
http://www.wikihow.com/Calculate-Food-Cost  
http://smallbusiness.chron.com/calculate-food-cost-restaurant-39551.html

Best of luck -

Chase

Running a Restaurant

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Chase LeBlanc

Expertise

I am the author of the new book, HIGH IMPACT HOSPITALITY: Upgrade Your Purpose, Performance and Profits!http://amzn.to/guebkx I am also the founder and CEO of Leadagers LLC http://leadagers.com/ (leaders who manage, managers who lead, "leed/i/jers") a hospitality industry consultancy. Our primary focus is in upgrading the purpose, performance and profits of restaurants, bars, food & beverage outlets and/or nightclubs. We have expertise in operations, start-ups, training, in-house leadership development and positive customer service experiences. 720.269.9537

Experience

My 30+ year hospitality career started as owner/operator of a nightclub development and management company. After successfully selling that business, I led within a variety of national and global operations as General Manager and multi-unit Regional Manager and I have also served corporations as Vice President and President. My extremely broad range of experiences includes leading training stores, entertainment complexes, fine dining establishments, high-volume theme restaurants, quick-service restaurants, dance/night clubs, comedy clubs, college taverns, dueling piano bars, pizzerias, high-volume sportís bars, live music showrooms, retail stores and gift shops, fast-food concessions, catering/banquet facilities and high-volume arcades.

Publications
"Staffing Doctor" columnist for Hotel F&B Magazine http://www.hotelfandb.com/blog/?p=819#more-819 Top 10 - FastCasual.com http://www.fastcasual.com/article/140233/Top-10-ways-to-motivate-your-managers Core Hospitality - Quick Serve Leader - http://quickserveleader.com/article/making-hospitality-core-your-restaurant-brand-expert-corner Wise Words - Inside F&B http://insidefandb.com/2012/01/wise-words/ And have been a featured blogger for FohBoh.com In addition to my new book High Impact Hospitality,http://amzn.to/guebkx I have been a contributing writer for and/or my properties have been featured in Cheers, F&B, Food Service News, Hot Spots America, Military Club & Hospitality, Nationís Restaurant News, Night Club & Bar and Top Shelf.

Education/Credentials
Attended the University of Colorado for three years and left to open my first nightclub at the age of 21.

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