Dec 19, 2019 · Find out your potential food cost. To calculate your potential food cost, multiply the total cost by 100, then divide that number by your total sales. In our example, we would complete the following equation: (\$3,000 X 100) ÷ \$8,000 = 37.5. Our potential food cost is 37.5% of our budget. The total food cost is equal to the sum of the individual item food costs. If you have 800 items to count, the food cost formula could be expressed as follows: FC=∑ n=1 800 (BI n +P n-EI n) So for each item in your inventory, you add beginning inventory to purchases and subtract ending inventory. Your total food cost figure is the sum of all ...

Tracking and Managing Inventory to Ensure Food Cost Control The first step of restaurant price control is tracking and controlling your inventory . It is essential to track the daily Stock-in and Stock-out and the actual consumption throughout the day. Your food cost percentage is the portion of sales spent on food. The average food cost percentage for most restaurants is in the range of 25-35%. Many restaurants aim to lower their food costs which will naturally turn more of your sales into pure profit. Jan 15, 2016 · Actual Food Cost, also reported as a percentage of total sales, is a measure of how much your food cost truly is. It’s a straight-forward calculation, but it relies on taking careful and regular inventory counts. The formula for Actual Food Cost requires the following information: