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How to Calculate Food Costs For Your Restaurant

7 Shifts

Of all the costs your restaurants generate, your food is one of the largest. The cost of the food you serve can be affected by so many different outside influences, some of them more obvious, like the rise and fall of fuel costs or the effects of good or bad weather. The cost of food and beverages is a bit of a moving target.

Food 363
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Is There a Right Way to Raise Prices?

Modern Restaurant Management

Due to many factors including inflation and supply chain challenges, restaurant owners and operators have been faced with tough choice about raising menu prices. As food prices rise, restaurants should try to stay within their target ratio for food cost to gross food revenue in order to maintain target profits.

Pricing 196
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Ultimate Guide To Restaurant Cost Of Goods Sold (COGS) in 2024

7 Shifts

The cost of goods sold (COGS) is a restaurant metric that shows you the cost of all ingredients used to prepare a menu item, including the food, beverage costs, and other direct expenses. It represents everything it takes to get a meal on the table, from the raw ingredients like meat and vegetables to the packaging for takeout orders.

2024 195
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Sales Mixes: Analyzing Food Costs and Pricing

Modern Restaurant Management

If this means deleting menu items, don't be afraid to do it. Maybe the menu item needs a better menu description. If there is a menu item listed as "Roasted Turnips," it may not be a top seller. Good words sell food. It's incredible how quickly a menu item sells simply by changing the location.

Pricing 208
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Restaurant Accounting: A Comprehensive Guide

7 Shifts

By tracking metrics like customer retention and employee turnover rate, contribution margin, and menu item profitability, restaurant managers can identify each area’s strengths and what areas need improvement. This number is essential because it helps you determine the price of your food and beverages.

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How to Calculate and Improve Your Bar’s Profit Margin

7 Shifts

A bar is a profitable business option if you’re looking to enter the food industry. It just goes to show how important drink pricing and cost management are to maximizing profits. Start by tracking all the income your bar generates, including sales from drinks, food, and any additional services.

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7 key restaurant revenue streams to prioritize in 2024

7 Shifts

Profitability remains a challenge for many restaurants, especially with prices for ingredients and labor going up. One of the best things to do is to find additional revenue streams to supplement your core food and beverage sales. Delivery and takeout 60% of American consumers reported ordering delivery or takeout once a week.

2024 243