Restaurant Prime Cost Formulas Flashcards
1
Q
Gross Profit
A
= Total Sales - COGS
2
Q
Food Cost Percentage
A
= COGS ÷ Food Sales
3
Q
COGS (Cost Of Goods Sold)
A
= Beginning Inventory + Purchases - Ending Inventory
4
Q
Menu Price
A
= Raw Food Cost ÷ Desired Food Cost Percentage (expressed as a decimal, ie. .28)
5
Q
Net Profit
A
= Gross Profit - Operating Costs
6
Q
4%
A
Variance for extra food cost
