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How To Calculate Food Cost Percentage (& SAVE $$) | Cafe Restaurant Management Tips 2022

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Hey guys, my name is Wilson.

Today we're going to be talking about how do you calculate your food cost.

Now, first and foremost, why is food cost so important?

There are basically three types of costs that would determine whether your business goes

bankrupt, or whether you would be having a thriving restaurant business.

The three types of expenses are your rental cost, your labor cost, and your food cost.

So these three things adds up to close to 75% to 90% of your revenue, okay?

So what that means is that if you can control one sector and one component of this cost,

you're going to be able to maximize the amount of profit that you can bring home.

Okay?

And in the food and beverage world nowadays, the margins are really thin and enough, we're

talking about 5% to 10%.

So what that means is, if you learn how to calculate, and when you'd learn how to calculate

food cost, you're going to be able to better control this item.

And when you can better control this item, that means that you can have a bigger pie

and bigger profit, that's in bigger [inaudible 00:01:08], which is the reason why today we're

going to be talking about how are you going to be able to calculate your food cost.

So now that you understand the importance of why food cost is so important, I also want

to bring to you the three benefits of actually understanding it.

Okay?

It is because the first benefit is so then that way you can strategize and engineer a


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