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Sunday, May 25, 2008

BBQ Food Costs Calculation

If you run a bbq restaurant, catering business, or any other type of food enterprise, at some time or another you will probably need to calculate your costs.

Several years ago I managed a popular breakfast restaurant (part of a very large company). The management company calculated food costs for each restaurant in the chain and the overall food cost for the entire company on a regular basis.

To calculate your own food cost percentage, add Beginning Inventory and Purchases. Subtract Ending Food Inventory. Then divide that figure by Food Sales.

For the typical breakfast restaurant, food costs range from 24% to 26%. Food costs for a steak, hamburger, or bbq restaurant will likely be higher because meat costs more than waffles and eggs.

1 comment:

BBQ Ribs Guy said...

I think the most important factor in KEEPING food costs down is one of the same things that needs to be done to keep food tasting good. Get in the kitchen and cook!

The more food can be made from scratch, the better it tastes and the less it tends to cost!

Thanks for the post...got me thinking about how lazy I've been with my food costs calculations lately!