--
--
--
Welcome to the world of precise restaurant management!
At STO, we comprehend that running a restaurant involves many tasks and keeping watch over food costs is one such important task.
For this purpose, our Food Cost Calculator has been developed. This handy cost calculator tool can assist you in organising and managing your expenses to enhance your pricing strategy, thereby increasing profitability.
What is the big deal with food cost percentage?
Well, think about it - if you were running a race but had no idea how far you needed to go or what time is being taken up by this task, would not that make things more difficult to manage and control in terms of pacing yourself correctly?
It is similar when running a restaurant without comprehending your food costs. Every dish you serve needs to pay for not just its ingredients but also the labour, packaging and operating expenses involved. Maintaining this cost is very important with thin profit margins from 3% to 5%.
When you understand the food cost percentage, it assists you in assessing how much money a particular menu item is making. Most of the time, food expenses are usually between 20% to 35% of what you charge for on your menu. But this range does not apply uniformly across all businesses.
The target food cost percentage will vary based on the type of restaurant you have and the items in your menu. Keeping an eye on your food costs helps you manage changes in ingredient prices, bargain for more favourable agreements with providers, and tactically modify your menu pricing. In brief, it offers management over how profitable your restaurant is.
Our Food Cost Calculator can be thought of as a personal accountant for your restaurant/ bar. It allows you to enter each ingredient, its amount and cost in order to calculate the food expense related to any dish.
You will obtain a detailed analysis that shows which ingredients are reducing your earnings and also displays the real food cost percentage side by side with anticipated profits. Plus, you can save a PDF version of your calculations for future reference.
Using our Food Cost Calculator is as easy as pie. Here is a step-by-step guide:
To begin, input the recipe's name, its price and your desired food cost percentage.
Ingredient Name, Purchase Price, Quantity Purchased, Quantity Used and Units of Measurement. The calculator will show the cost for each ingredient.
Once all inputs are in, click the calculate button.
Once all inputs are in, click the calculate button.
Finally, you can export your results as a PDF for easy access and record-keeping.
Now, let us decipher the results. Understand that there is not a single objective for food cost percentages applicable to all, it changes according to your restaurant type and dishes. Still, normally it falls within the range of 20% to 35%.
If your food cost percentage appears to be high, it is necessary to do more investigation.
Are there any ingredients which are particularly costly?
Think about locating different suppliers or elements that keep the quality but lessen expenses. Make sure that the sizes of your portions are similar, as this is important since big portions might cause a rise in food expenses. At the end, check if you have priced high-cost items correctly on your menu. Modify prices to keep profit margins steady.
A low food cost percentage appears positive, yet it requires an inspection. Make sure you are not sacrificing the quality of ingredients. Rethink your pricing method to guarantee that you are increasing profits. Also, check if your supplier provides good quality and service even though their costs are low. Occasionally, spending a little more for superior quality can help keep customers happy and loyal.
To manage the profit of your restaurant, it is very important to understand the cost of your food. This task becomes easy with our Food Cost Calculator. You can use it for tracking and adjusting costs efficiently. It does not matter if you are calculating one dish or all items in stock; this tool will give a clear understanding that helps in decision-making.
Therefore, what are you waiting for? Begin using our Food Cost Calculator today to initiate a more lucrative restaurant operation. Your hospitality business will show gratitude, as will your financial results!
