How To
Set Up Food Cost Calculator
Calculators
are great for seeing just where your money is coming from and where it is
going. Sadly, most small businesses don t use them because they don t know
about them.
Question:
How did big companies become successful big companies?
Answer: They
have developed systems to help them keep track of many aspects of their
business.
Most Mom-and-Pop
Restaurants failed because they didn t know how to figure out where they were losing
money. You seen Bars open then close a year later because of the same reason. Handyman,
construction, lawn care even retail companies fold because of a lack of
systems.
The Food
Cost Calculator doesn t just work for restaurants, it works for any industry
that handles food products.
First, we
need an inventory count of what is currently on the floor, (floor and be the food
holding area, store shelving/freezer/display case). In this case, I m using a
restaurant for this example.
|
DAILY FLOOR INVENTORY
COUNT CARD |
1/2/2024 |
JOE PUBLIC |
||||
|
ITEM |
FOOD ITEM DESCRIPTION |
UNIT |
PULLED |
PULLED TO |
TOTAL |
|
|
1 |
BACON |
SERVING |
65.000 |
10.000 |
0.000 |
55.000 |
|
2 |
BREAD TEXAX TOAST |
SERVING |
70.000 |
0.000 |
0.000 |
70.000 |
|
3 |
CHICKEN |
PIEC |
55.000 |
0.000 |
0.000 |
55.000 |
|
4 |
COFFEE |
SERVING |
120.000 |
0.000 |
0.000 |
120.000 |
|
5 |
EGGS |
PIEC |
60.000 |
0.000 |
30.000 |
90.000 |
|
6 |
HAM |
PIEC |
65.000 |
0.000 |
0.000 |
65.000 |
|
7 |
SAUSAGE |
SERVING |
65.000 |
0.000 |
20.000 |
85.000 |
|
8 |
TEA |
SERVING |
120.000 |
0.000 |
0.000 |
120.000 |
|
9 |
|
|
0 |
0.000 |
0 |
0.000 |
|
10 |
|
|
0 |
0.000 |
0 |
0.000 |
Food Item
Description - common or distinct name of the food.
Unit how it
is either served or displayed for sale
On The Floor
Count the number of Food Items on the Kitchen Floor (storage areas) or in displays
for sale.
Pulled From
the Floor Count Waste Food Items removed from the Floor due to no longer fit
to use or sell.
Pull To
Floor Count Food Items added to the Floor to increase availability.
Total Floor Count is the total Food Items on the Floor
Formula: ON THE
FLOOR COUNT PULLED FROM THE FLOOR WASTE COUNT + PULLED TO FLOOR COUNT = TOTAL
FLOOR COUNT
Now that we
have the Floor Count Card completed, transfer the information into the Food
Cost Calulator
|
FOOD COST CALCULATOR |
|||||||||||||
|
ITEM |
FOOD INVENTORY ITEM |
ON FLOOR |
UNIT |
PULLED |
FLOOR |
PULLED TO |
TOTAL |
INVENTORY |
BEGINNING |
END OF DAY |
END OF DAY |
ON THE |
STILL |
|
1 |
BACON |
65.000 |
SERVING |
10.000 |
$2.30 |
0.000 |
55.000 |
$0.23 |
$12.65 |
50.000 |
$11.50 |
5.000 |
$1.15 |
|
2 |
BREAD TEXAX TOAST |
70.000 |
SERVING |
0.000 |
$0.00 |
0.000 |
70.000 |
$0.15 |
$10.50 |
70.000 |
$10.50 |
0.000 |
$0.00 |
|
3 |
CHICKEN |
55.000 |
PIEC |
0.000 |
$0.00 |
0.000 |
55.000 |
$0.59 |
$32.45 |
49.000 |
$28.91 |
6.000 |
$3.54 |
|
4 |
COFFEE |
120.000 |
SERVING |
0.000 |
$0.00 |
0.000 |
120.000 |
$6.00 |
$720.00 |
90.000 |
$540.00 |
30.000 |
$180.00 |
|
5 |
EGGS |
60.000 |
PIEC |
0.000 |
$0.00 |
30.000 |
90.000 |
$0.19 |
$17.10 |
85.000 |
$16.15 |
5.000 |
$0.95 |
|
6 |
HAM |
65.000 |
PIEC |
0.000 |
$0.00 |
0.000 |
65.000 |
$1.02 |
$66.30 |
58.000 |
$59.16 |
7.000 |
$7.14 |
|
7 |
SAUSAGE |
65.000 |
SERVING |
0.000 |
$0.00 |
20.000 |
85.000 |
$0.36 |
$30.60 |
69.000 |
$24.84 |
16.000 |
$5.76 |
|
8 |
TEA |
120.000 |
SERVING |
0.000 |
$0.00 |
0.000 |
120.000 |
$0.16 |
$19.20 |
35.000 |
$5.60 |
85.000 |
$13.60 |
|
9 |
|
0.000 |
|
0.000 |
$0.00 |
0.000 |
0.000 |
$0.00 |
$0.00 |
0.000 |
$0.00 |
0.000 |
$0.00 |
|
10 |
|
0.000 |
|
0.000 |
$0.00 |
0.000 |
0.000 |
$0.00 |
$0.00 |
0.000 |
$0.00 |
0.000 |
$0.00 |
|
$2.30 |
$908.80 |
$696.66 |
$212.14 |
||||||||||
|
|
|
|
|
|
FLOOR |
|
|
BEGINNING |
END OF DAY |
STILL |
|||
Now we can
use another calculator to see how our food cost fairs against sales.
Daily Food
Cost % Calculator takes the Sales and the Food Cost and presents the ratio
between the two.
Typically,
Food Cost should not exceed 31%, over that line, the establishment struggles to
stay afloat. Between 21% and 29% is favorable.
|
DAILY FOOD COST %
CALCULATIOR |
|||
|
ITEM |
DAILY |
TOTAL |
FOOD |
|
1 |
$2,973.00 |
$696.66 |
23.43% |
|
TOTAL FOOD COST / DAILY SALES = FOOD COST % |
|||
How to
Adjust Food Item Cost Ratio? Well, we need another Calculator for that.
This is the
perfect tool for setting menu pricing on combo menu items. Used by fast food
chains everywhere.
|
FOOD ITEM RETAIL PRICE
CALCULATOR |
|||||
|
ITEM |
FOOD DESCRIPTION |
UNIT |
COST |
COST |
RETAIL |
|
1 |
BACON |
SERVING |
$0.23 |
21% |
$1.10 |
|
2 |
BREAD TEXAX TOAST |
SERVING |
$0.15 |
21% |
$0.71 |
|
3 |
CHICKEN |
PIEC |
$0.59 |
21% |
$2.81 |
|
4 |
COFFEE |
SERVING |
$6.00 |
21% |
$28.57 |
|
5 |
EGGS |
PIEC |
$0.19 |
21% |
$0.90 |
|
6 |
HAM |
PIEC |
$1.02 |
21% |
$4.86 |
|
7 |
SAUSAGE |
SERVING |
$0.36 |
21% |
$1.71 |
|
8 |
TEA |
SERVING |
$0.16 |
21% |
$0.76 |
|
9 |
|
|
$0.00 |
21% |
$0.00 |
|
10 |
|
|
$0.00 |
21% |
$0.00 |
|
$8.70 |
$41.43 |
||||
|
COST |
RETAIL |
||||
|
COST
PER SERVING / RETAIL% = RETAIL PRICE |
|||||