If you are an owner of a multi-location restaurant business, then you must calculate the operational costs of each restaurant location.
You must first be aware of the numerous restaurant operating expenses, including food, drinks, and labor expenditures. Food prices can be divided into two categories: per-plate costs and total food expenditures.
You will compute the cost of ingredients for each menu item to figure out per-plate costs. If the entire cost of the burger with a beverage meal is $3.75 and the goal is to maintain food costs at 25%, you must charge $15.
($3.75 x 100) / 25 = $15.00
To estimate total food expenses, apply the following formula:
(COGS/Total Food Sales) x 100 = Percentage of overall food expenses
Let's assume that your cost of goods sold (COGS) is $4,000. The total food sales are $15,000.
This is how your equation would appear: ($4,000 / 15,000) times 100 = 26%. According to some industry-wide standards, operational costs should approximate the following: Food prices range from 21 to 31%, labor costs from 25 to 30%, prime expenditures from 55 to 60%, and other costs from 30%.