Running a restaurant can be an expensive and complex procedure. To make sure you are on top of the business, figuring out food cost is one of the most important things. Food Cost is the ratio between how much it costs the restaurant in raw materials to make a dish and how much revenue the restaurant generates from it. Always remember that food cost changes every day. Best restaurants try to put food cost under 30 %. The four methods used in the restaurant industry:
SIMPLE MARK-UP MULTIPLIER METHOD
PRIME INGREDIENTS MARK-UP METHOD
NOTE: The prime ingredients here are Ham, Bread and Cheese. I used the food cost method Ham(1.26) + Bread(0.60) + Cheese(0.75)=2.61
RATIO PRICING METHOD
CONTRIBUTION MARGIN PRICING METHOD
