Question:

Formula for food costing

by Guest6618  |  earlier

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I have a question related to the pricing of food. I want to know that how the food costing is carried out in different aspects. Does this involve use of a certain formula or people simply do it the way they like. I am asking this question that every time when I visit a restaurant, the prices of food items and menus is different from what it was previously.

 Tags: Costing, food, formula

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  1. Harry

     Food cost that is related to the price of certain dish in the menu is basically the comparison to the cost of the food used to prepare that particular dish. In other words, how much one pays for food will determine how much he or she will be charged for it. Generally, food cost should be around 30-35%. This means that if the actual cost of food is Rs. 100 for something, you need to charge minimum of Rs 335 or so. It may seem that the charges are a lot more than necessary, but it should be noted that one is not just paying for the food itself, instead paying someone to prepare the food, serve the food, and clean up after the food. Everything in a restaurant, from payroll to the electric bill needs to be covered by the food served. Here is a formula for calculating the food cost. This formula calculates food cost percentage taking in account the daily sales, purchases and inventory state:

    FC % = InvO + P - Inv1 divided by Sales

    Inv0 : Beginning Food Inventory
    Inv1 : Ending Food Inventory
    P : Purchases
    Sales: Food Sales

  2. Guest10475150
    how to calculate food costing?any formula?
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