Each week on Friday we will be posting a simple “Friday Financial Footnote” that is designed to keep the PL Mindset as part of forward thinking within the Regions
FOOD COST AS A PERCENTAGE
Do you know your Food cost percentage?
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Food cost percentage is determined by dividing your weekly cost of food by your weekly revenue. Your weekly food cost is theconsumed number each week after it has been adjusted by inventory.
SAMPLE EXERCISE
If food cost for the week on the FOS is showing $4,301 and your Revenues are posting at $12,798, your food cost as a percentage is 33.6%
The Formula is FC/Revenues = FC%, $4,301 divided by $12,798 = 33.6%
Test the Formula this week to determine what your Food cost percentage is. Once completed use the same formula to determine your budgeted food cost percentage and then compare your account performance to budgeted expectations.
Kevin J Mclaughlin | Regional Director of Operations