What is the average food bill for a restaurant?

The average restaurant food cost percentage is between 28% and 32% of total food sales, with peaks up to 45%.

What are restaurants biggest expenses?

Food and labor are the biggest expenses for any restaurant.

What is a good labor cost for a restaurant?

Most restaurants aim for labor cost percentage somewhere between 25%-35% of sales, but that goal may vary by restaurant industry segment: 25%: quick service restaurants with less specialized labor and faster customer transactions. 25-30%: casual dining, depending on the menu and methods of service.

What is an ideal food cost?

Restaurant owners typically set an ideal food cost percentage based on a number of factors, including their other expenses for labor and rent. Many restaurants aim to keep food costs between 28 and 35% of their revenue. This number can vary significantly based on a particular business’ needs.

How much money should you save to open a restaurant?

The average restaurant startup cost is $275,000 or $3,046 per seat for a leased building. Bump that up to $425,000 or $3,734 per seat—if you want to own the building. Our restaurant startup cost checklist breaks down all the costs you’ll need to consider to make your dream a reality.

What is a good kitchen labor cost?

A common rule of thumb is that restaurants should aim to keep labor costs at about 30% of sales. However, for some restaurants that number can be lower and, for others, it needs to be higher. Casual establishments, like counter-service cafes or fast-food restaurants, often have lower labor costs.

How do you calculate labor cost for food?

Divide labor cost by total operating costs For example, if labor costs $9,000 per month and total operating cost is $15,000 per month, divide $9,000 by $15,000 to get 0.6. Multiply by 100. This final number is your restaurant’s labor cost percentage. In this example, it’s 60% of the total cost of doing business.

What should the percentage of food cost be for a restaurant?

Choose your ideal food cost percentage. Your food cost percentage is the portion of sales spent on food. The average food cost percentage for most restaurants is in the range of 25-35%. Many restaurants aim to lower their food costs which will naturally turn more of your sales into pure profit. Determine the raw food cost of the menu item.

How much should you spend on food and beverage?

The most surefire way to calculate this percentage and to be sure you don’t miss anything is to divide your expenses into two categories: food and beverage costs and wages. Ideally, you’ll spend around 25-30% of your profits on food and beverage costs, but generally no more than 35%.

How can I Price my Restaurant menu correctly?

Food cost and portion control are two things that will help you price your menu correctly, but you also have to be careful not to price yourself out of the local market. It’s challenging to create a balanced menu that fares well against the competition and keeps you in business.

What’s the difference between a restaurant and an expense?

Before we jump into restaurant startup costs and expenses, it’s important to clarify the difference between the two. A restaurant expense is a recurring payment like rent, food costs, payroll, marketing and utilities. A restaurant cost is any one-time expense for things like kitchen equipment, dishes or furniture.

What is a good food cost for a restaurant?

Restaurants should aim for a food cost of 28 to 35 percent of the overall operating budget. Smaller eateries should keep food costs closer to the 28 percent figure, whereas larger chain restaurants usually spend more on food, perhaps because there is a large corporation funding the operation.

What is a good food cost percentage?

The formula for ideal food costs is: Ideal Food Cost Percentage = Total Cost Per Dish / Total Sales Per Dish For example, say your total cost per dish is $1,500 and total sales per dish is $6,000. Your ideal food cost percentage would be 25% .

What are restaurant expenses?

Restaurant expenses include the cost of labor, including employee’s wages as well as any applicable taxes. If a restaurant offers benefits to employees, that is another expense that needs to be considered. The cost of labor is typically an expense the restaurant can keep under control and manage.

What is food cost percentage?

Put simply, food cost percentage is your COGS (cost of goods sold) divided by your sales. Cost of goods sold is the amount of money you’ve spent on ingredients and inventory in a given time period – we’ll show you how to calculate that, too.