formulas in restaurants:
1. _Food Cost Percentage_:
Food Cost Percentage = (Total Food Cost ÷ Total Food Sales) x 100
Example: Total Food Cost = $10,000, Total Food Sales = $50,000
Food Cost Percentage = ($10,000 ÷ $50,000) x 100 = 20%
1. _Labor Cost Percentage_:
Labor Cost Percentage = (Total Labor Cost ÷ Total Sales) x 100
Example: Total Labor Cost = $15,000, Total Sales = $50,000
Labor Cost Percentage = ($15,000 ÷ $50,000) x 100 = 30%
1. _Menu Pricing Formula_:
Menu Price = (Food Cost x Markup) + Labor Cost + Overhead
Example: Food Cost = $10, Markup = 3, Labor Cost = $5, Overhead = $2
Menu Price = ($10 x 3) + $5 + $2 = $35
1. _Table Turnover Rate_:
Table Turnover Rate = Total Number of Tables ÷ Total Number of Customers
Example: Total Number of Tables = 20, Total Number of Customers = 100
Table Turnover Rate = 20 ÷ 100 = 0.2 (or 2 turns per table)
1. _Average Check Size_:
Average Check Size = Total Sales ÷ Total Number of Customers
Example: Total Sales = $10,000, Total Number of Customers = 500
Average Check Size = $10,000 ÷ 500 = $20
These formulas help restaurants manage their finances, optimize menu pricing, and improve customer service.