food costing

Food costing©Lokendra kumar

Food costing

This is a most common and important term used in food business to know the profitability at the end of the day/month High food cost = less profitLess food cost = high profit

In a food business it is very necessary to maintain the quality and quantity of food to justify the value for money paid by guest/customer. And to keep/add long-term relations with them(guest/customer).

Every organizations have their own set standard percentage of food cost & profitability and this must be followed by the chefs or food handlers to maintain the quality of food and to keep organization’s profitability

How to calculate food costCost of food divided by sale of food x 100 = food cost %It means…If food cost of 1 dish is 500, and sale is 1500, the food cost% would be 33.3%

Basic Formula is…Value of opening inventory + food purchase = total cost value - value of closing inventory = value of food consumed -Value of employee meals= total cost of food soldFood cost % = (total cost of food sold x 100)/total sales value

Maintaining food cost at 30-33% is ideal condition to keep balance between quality and profitability

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