Short-Question

# What is the formula for calculating food and beverage cost percentages?

## What is the formula for calculating food and beverage cost percentages?

To calculate your food cost percentage, first add the value of your beginning inventory and your purchases, and subtract the value of your ending inventory from the total. Finally, divide the result into your total food sales.

## What is the formula for calculating food cost?

To calculate the ideal food cost, first determine the food cost of each menu item. Then multiply the cost of each menu item by the number of times it was sold in a given period of time. In other words, you multiply by the sales mix.

What is the formula to calculate beverage cost?

Beverage Cost = Cost of alcohol sales / Total alcohol sales The beverage sales and costs should be generated during a set accounting time period of at least two weeks or more typically, every 28 days, or monthly.

How do you calculate food cost in a restaurant?

To calculate the total food cost percentage for your restaurant, add the value of the beginning inventory and purchases, then subtract the ending inventory, and divide that total by the total food costs.

### What is food cost method?

Food cost is essentially the total cost of your food net of the existing Inventory. Most of the time, if not always, beverage costs are not included and are counted separately. In percentage, the food cost is primarily a restaurant’s total food purchase divided by the restaurant’s total sales.

### How do you calculate pour cost?

Pour cost is calculated thusly: it’s how much booze you had when you started, plus how much you spent, minus how much you have on hand, divided by how much you sold. Multiply that number by 100 and throw a percent symbol at the end of it, and you’ve got your pour cost.

How do you manage beverage costs?

Here are 11 proven tips for lowering your beverage costs.

1. Use pars.
3. Establish pour policies.
4. Record spills and complimentary drinks.
5. Take weekly inventory.
6. Set up security cameras.
7. Lock up liquor and only give managers the key.
8. Buy a quality draft system and keep it clean.

How do you calculate cost of goods sold?

The cost of goods sold formula is calculated by adding purchases for the period to the beginning inventory and subtracting the ending inventory for the period.

#### How to calculate the percentage of food cost?

Once you have those details, use the following food cost formula to calculate your food cost percentage: Opening Inventory Value + Cost of Purchases – Closing Inventory Value = Usage Amount. Usage Amount/Food Sales Revenue = Costs of Goods Sold (%) It may seem like a lot of information that you have to plug in.

#### Why do you need a food and beverage cost formula?

The beverage and food cost formula is also a useful tool for your kitchen manager to make orders and stock inventory without going over budget. Calculating your beverage food cost formula is easy and can be recorded anywhere from a bar napkin to a spreadsheet (although we don’t recommend the bar napkin approach).

How to calculate the ideal food cost formula?

The ideal food cost percentage formula is ideal food cost divided by turnover. A good way to start costing your recipes is to create a menu item food cost spreadsheet in Excel or Google Sheets. It’s basic but effective. On the worksheet each menu item’s ideal food cost is calculated based on the item’s ingredients, portions and current price.

How do you calculate the cost of liquor?

If the liquor inventory is not considered, your liquor usage will not be properly seen in your cost calculation. Lastly, you will need your bar’s total liquor revenues for the period. Divide the first (purchases – inventory) number by the revenues. That final number will be the cost percentage for the period.