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What Is Ideal Food Cost?

Restaurant Ideal Food Cost | RestaurantMgmt101.com

Restaurant Food Cost is one of the largest controllable costs. With many variables in-play, food cost is not always easy to control. The various components of food cost will be discussed in other articles.

Here, we are concerned only with the "ideal" food cost. Some restaurants call it "theoretical" food cost but in the quest to keep things simple, we choose to call it "ideal" food cost. Many restaurant managers don't understand the word "theoretical" but when we say "ideal" then the manager understands immediately. Ideal food cost is what your food cost will be if all variables are controlled.

Ideal food cost is the standard by which you can compare your actual food cost. If your actual food cost varies to your ideal food cost, then you set about to determine why and where the problem(s) lie.

After completing your inventory, you should do a food cost analysis. What do you use to measure your results against? How do you know what your "ideal" food cost should be?

Actual Food Cost vs Ideal Food Cost

When your actual food cost is higher than your ideal food cost, then you have not optimized your bottom-line profits. You have thrown money out with the trash. However, you won't know this unless you know what your ideal food cost is.

The RM101 Team has created a simple program that will determine your ideal food cost. Once completed, you will then have the standard by which you will compare your actual food cost.

If you really want to optimize food cost, then tell us you want this program. Fill out the Contact form and in the "Subject" line put the words Ideal Food Cost.

This program has to be fully customized to your menu. We will gladly discuss how we can do that.

You can learn more about ideal food cost by going to Food Cost 101.

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