Michael Viola, CPA, MBA’s Post

"Calculate Food Cost Ratios" Knowing your food cost per dish helps you spot where your margins are highest—don’t ignore this key metric! Also known as theoretical food cost helps you understand what your margins should be.  While industry averages are directional, the margins for every restaurant varies!

Bytes A positive cost variance should be low and means the restaurant is efficient at food cost management. To measure food cost variance means an insight into the difference between the actual cost to produce menu items over a given time period and what the expected costs were over that same time.

📉 Inflation easing, but food prices still soar? Don't let rising costs eat into your restaurant's profits! Find out how menu costing software can help you navigate the challenges of fluctuating food prices while keeping customers satisfied. Check out the blog now: https://loom.ly/VkCrUFc #MenuCosting #RestaurantSuccess #Profitability #Inflation #Food #Restaurant #Business

🍽️ Did you know that one of the top ways hospitality owners lose money is through improper food costing? It's important to regularly adjust your menu prices to reflect the true cost of ingredients. We've helped clients install food & menu costing technolgy that helps keep track of varying prices with price alert warnings. ✅ If you'd like to find out more details, get in touch with us. 🤝 #NumberKrunchers #FoodCosting #HospitalityTips #HospitalityConsulting #ProfitableBusiness #SmallBusiness

More like a reference to fast food in general, this article reflects the rapid rise in the cost to dine out, even at the lower end of the food chain! https://lnkd.in/gvbDpaxF ConsortiumRE #restaurantlife #restaurantconsultant #fastfood

Next Up! Food Cost%! Again there's a simplified answer and a complex one; in my opinion, both are justified. However, how does one go about costing first; using yields and portions or the ancient way to go using weights and volumes? Use weights as menu portions, use yield for costing. Plain and simple; Food Cost is total food purchases / total food sales. Accurate: purchases minus leftover inventory / total food sales. Break it down into each recipe process' usage, yields and portion, you will have a near accurate food cost. Industry standards? It is not that simple to price everything accordingly to "industry standards"; slow moving items, low yield and high food cost items in a diner, will have a higher food cost; priced to sell. Fast moving items, typically high yield and low food cost will achieve lowest food cost as it will sell quickly and requiring higher preparation rates(s). Each restaurant business has its own market segments, which means different demands, buying power and menu mixes. Industry standards? Does that really apply here?

Has that morning burrito or bagel gotten too expensive? When we talk about the increased cost of fast food, we often think in terms of burgers, fries and chicken sandwiches. But did you know that breakfast pricing at many chains is outpacing that of the rest of the menu (as in burgers, fries and chicken sandwiches)? In fact, morning prices have soared as much as 72% at a couple of chains over the past five years, according to a new report. And when it comes to certain items, the spikes can be higher -- like a 149% increase in the price of hash browns at one chain. I dig into what's happening -- and why it's happening -- in this story... https://lnkd.in/gBxd26dW

Struggling with setting the right menu prices? Ingredient costs fluctuating and market conditions ever-changing can make it a daunting task. Without the right pricing strategy, you risk losing profits or turning away potential customers. The three most important steps in setting proper prices are: ✅ Recipe Cards: If you don't have written recipes for each of your menu items, you are simply guessing and making up your prices. ✅ Regularly Update Ingredient Costs: Ingredient prices are influenced by various factors, making it essential for restaurants to maintain updated records and adapt their menus and promotions accordingly. ✅ Re-evaluate Menu Prices Periodically: Changing food trends and economic conditions necessitate periodic menu price evaluations, with feedback from customers and staff ensuring a balance between cost and value. Need expert guidance? We can provide the insights and expertise to optimize your menu pricing seamlessly. Let's chat. #restaurant #finance #accountific #yyc #menupricing #restaurantowner #foodandbeverage #bookkeepingservice #restauranteur

Struggling with setting the right menu prices? Ingredient costs fluctuating and market conditions ever-changing can make it a daunting task. Without the right pricing strategy, you risk losing profits or turning away potential customers. The three most important steps in setting proper prices are: ✅ Recipe Cards: If you don't have written recipes for each of your menu items, you are simply guessing and making up your prices. ✅ Regularly Update Ingredient Costs: Ingredient prices are influenced by various factors, making it essential for restaurants to maintain updated records and adapt their menus and promotions accordingly. ✅ Re-evaluate Menu Prices Periodically: Changing food trends and economic conditions necessitate periodic menu price evaluations, with feedback from customers and staff ensuring a balance between cost and value. Need expert guidance? We can provide the insights and expertise to optimize your menu pricing seamlessly. Let's chat. #restaurant #finance #accountific #yyc #menupricing #restaurantowner #foodandbeverage #bookkeepingservice #restauranteur

Food Cost Control: How to Keep Quality High Without Breaking the Bank 💡 Balancing food costs while maintaining quality is a top challenge for both restaurant owners and chefs. Here are some strategies that work: Menu Audits: Regularly review your menu and analyze the profitability of each dish. Focus on keeping high-profit items that still deliver great taste. Reduce Waste: Train staff on portion control and use creative recipes to repurpose unused ingredients into specials. Supplier Relationships: Building strong connections with suppliers can lead to better pricing, faster delivery, and even insider knowledge on seasonal deals. Good food doesn’t have to come at an extreme cost. What’s your top tip for balancing food quality and cost? #FoodCostManagement #RestaurantStrategy #ExecutiveChefTips #QualityControl #Sustainability