Food waste is the leading cost in restaurants and bars. In fact, there are nearly $2 billion in losses every year due to wasted food in American restaurants. What are some ways owners and management can reduce the unsustainable amount of squandered goods? One of the first ways to calculate just how much food is being wasted at your establishment is to use a food cost formula. This takes the total cost of ingredients divided by the menu item price for a food cost percentage. The idea is to determine how much is being spent on ingredients compared to the money gained. Ideally, the percentage should fall somewhere between 15% to 30%, giving you a gross revenue per item of 70% to 85%. By understanding these costs, you can improve food cost control and better determine which areas need to be addressed. You could cut costs by adjusting your supply chain or eliminating high-cost, low-profit menu items. Knowing these food costs can also help you optimize inventory. Enhanced inventory management could lead to reduced costs when you accurately stock, rework specials, use the same ingredients across the menu and more. For more information on the ways in which your restaurant can save capital, please read on to the resource supported alongside this post.
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