Physical Inventory Control and Food Cost Percentage
Understanding how your inventory and food cost are related is exceptionally important. Today most large operations have the luxury of technology however smaller operations and those that have not adopted technology keep a ‘manual’ daily, weekly, or monthly food cost analysis. Many with technology also still do manual food stock takes of inventory each month to check their stock holding and food cost percentage to identify any variances.
Let’s explain how this can be done.
The formula works as follows:
A very simple spreadsheet can be drawn up in Excel (or manually) to calculate the daily, weekly, and monthly food cost:
If your food cost increases above the forecasted, desired food cost then you will soon become aware that you need to look at why there is a variance.
Reflection
How do you think inventory control could (or does) assist you managing costs in your restaurant? Please share this in the comments below.
How to Manage Food Costing in the Catering and Restaurant Industry
How to Manage Food Costing in the Catering and Restaurant Industry
Reach your personal and professional goals
Unlock access to hundreds of expert online courses and degrees from top universities and educators to gain accredited qualifications and professional CV-building certificates.
Join over 18 million learners to launch, switch or build upon your career, all at your own pace, across a wide range of topic areas.
