The food cost spreadsheet template will help you as restaurant owners to be profitable. When you have costs target, the spreadsheet will allow you to list all the costs you spend on the food and then how you have to price your products.
By having a spreadsheet, you can have an accurate costing for all of your recipes and menu items. The spreadsheet provides you a system where you can directly input current prices for the ingredients you buy, and the price of the menu items will be automatically changed into the current costs.
There are a lot of food cost spreadsheet template available online you can download. If you are a big restaurant with various menu items, you can even input hundreds of menu items with its ingredients and sub-recipes. The food cost spreadsheet template will help you to eliminate repetitive typing. You just simply cut and paste the data, or input the current price of items and the system will work to show you the updated menu costs.
It also allows the owners to experiment with several cost targets, then you can get different selling menu prices. When you input current ingredients costs, automatically the spreadsheet will recalculate recipe and menu costs. It can be printed without showing the cost of information for the kitchen and recipe manual.
How to Calculate Food Costs
Calculating food costs may be easy to do. To get the most profit for your restaurants, you can try these tips to calculate your food costs.
If you have a menu item, try to break up each menu into the ingredients. Go for details, such as mentioning how much the cooking oil you add and every pinch of seasoning you use.
After that, combine the costs of all ingredients you have for each menu, then you come up with the total costs for each dish. Consider the fixed cost for each dish. The fixed cost includes production costs such as utilities and salaries. One example, assume that your restaurant daily fixed costs are $1000 and the average customers who come per day are 100 customers. This shows that the fixed cost per dish served is $10.
Once you have this number, now consider the percentage of the menu price that comes from food. If you sell it for $8 and your food cost is $4 that means your percentage of the food cost is 50%.
If you are running an established restaurant, go check if the price you set covers the fixed price and food cost per dish. From here it will be easy for you to determine the daily operation of your restaurant, whether it is possible to turn over the profit.
How to Optimize Food Cost
There are several strategies to lower the food cost and optimize it. This way is to prevent the overspending of costs.
One thing you can do is add the number of carbs on your restaurant menu because carbs are a lot cheaper than protein-based menus. You can also optimize the profit by highlighting the most profitable dish items on your menu design.
The last thing to do is play around with your dish portion size until you get its cost percentage you look for. Or you can increase your menu prices. You can do it by monitoring how much waste food on dishes that come back to your kitchen. If it is too much, try to adjust the right portion for the customers. This way is also good for the environment.
Common Mistakes When Calculating Food Costs
One mistake you may face is when you mistake your actual food cost with the ideal cost. This way will give you a false profit. Thus, to get an accurate food cost, try to have a correct inventory and correct units. Always update yourself with price information.
To ease you doing these tasks, try having a food cost spreadsheet template.