Food Cost

Food cost is is the percentage of total restaurant sales spent on food. It is calculated by using  this formula.  Beginning Inventory  +  Purchases - Ending Inventory  divided by Food Sales.
         Food cost control is a constant on going battle in every food service establishment.  Many things come into play when talking about food cost.  The biggest ones are waste and theft.  Employees will rob you blind if you don't stay focused.  The server that gives out extras in hopes to get a bigger tip, the dishwasher that takes out the trash with a hidden case of food only to be retrieved later or a cook who carries a backpack everyday.  These are just a few.  The other big one is waste caused by over ordering, not rotating properly, over portioning, improper food handling or prepping. 
        Another big factor in food cost is knowing the cost of the food how to cost out a plate  and where to get it at the best price.  Last but not least you have to count accurate inventories. 
         Food cost is one of the toughest costs to control in the food service industry.  Your team will need constant coaching and mentoring so that everyone can do their part to keep the food cost inline.  Also reward your team when they do well to get repeat behavior.  Post the monthly food cost so everyone can see it and let your team know what the goals are. In the end Food cost will most likely always be a challenge with the ever changing economy and the many variables that affect it.