Introduction to Food Costing

Food cost is the process by which the material or physical assets owned by an establishment are safe guarded, as the property needs these assets in order to make a profit.

Food cost is simply the total cost of your food net of existing inventory. Usually beverage costs are counted separately but occasionally these are combined. When expressed in a percentage, the food cost is simply one’s net food purchases divided by the restaurant’s net sales.

To ensure that a kitchen is operated in the most profitable way, and to control
expenses, there need to be established procedures that have to be strictly followed. It is
important that each member of staff understand these procedures so a food cost can be
achieved. Standardised recipes and procedures are put into place to guarantee
consistency.

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