Building Menu Items
Calculating food cost on an item and menu level is time consuming and confusing. For this reason, many restaurant operators feel it’s better to focus on sales and growing their customer base. In some cases, there are restaurants bring in a lot of cash with little to no profit. This can lead to perceptions of theft or mismanagement of funds creating mistrust. If restaurant operators took the time to evaluate all costs, it may shine a light on deeper issues. There are many costs from purchases to rent to incorrect pricing of menu items. In this article, I’m only going to focus on food costs because it’s a great place to start and make sure the menu items sold are profitable.