Maximize Profits: Secrets of Restaurant Food Costing! #FoodCosting #RestaurantManagement #ProfitMax

4 Feb 2024 · 0 min

Watch on YouTube

0:25

Donald Burns introduces the importance of rigorous food costing for restaurants, defining 'Theoretical food cost' as 'Perfect World' (costing every menu item down to the penny). He states the average restaurant has a 9% gap between theoretical and actual food cost and argues that closing that gap can yield roughly 3–8% improvement in profits.

Questions this video answers

Costing out everything on the menu down to the penny.

Anywhere from 3% to 8% in profits.

With inflation supply chain issues, you really need to double down on your food costing. Theoretical food cost is called Perfect World. That's where I cost out everything on my menu down to the penny. The average restaurant has a gap between theoretical and actual food cost of 9%. Just by knowing the theoretical and actual food cost and closing that gap, trust me, you can find anywhere from 3 to 8% in your profits.