Food cost (cost of ingredients / selling price) is THE key metric for profitability in restaurants. With delivery, considering platform commissions, it needs to be even more carefully managed.
Step 1: List each dish. List all ingredients with their unit cost. A diced steak 150g at 8 EUR/kg = 1.20 EUR. Do this for every gram, every milliliter.
Step 2: Standardize portions. If each cook puts a different amount of cheese, your food cost varies by 20%. Recipe cards with precise grams eliminate this variability.
Step 3: Negotiate with your suppliers. Compare at least 3 suppliers for each ingredient category. A 5% difference on raw materials can represent thousands of euros per year.
Step 4: Reduce waste. Weigh your trash bins for a week. Each kilo thrown away is a kilo paid for. Main causes: over-preparation, poor storage, not following FIFO.
Step 5: Review your prices quarterly. Ingredient costs fluctuate. If the price of chicken increases by 15%, adjust your selling prices accordingly.
The goal: a gross food cost (ingredients only) between 25% and 30%. A total food cost (ingredients + packaging) between 30% and 35%. Beyond that, your profitability is threatened.
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