Free e-book

The Ultimate Guide to Calculating Food Costs

Do you really know your restaurant's gross profit? Hand over heart, know it cold? If not, this guide gets you started on the journey to controlling costs and driving profit.

  • Set a baseline you can measure against
  • Organize invoices & ingredient costs
  • Calculators to set target GPs per recipe
  • A menu report: actual vs. target margins
Foodrazor · Free e-book
The Ultimate Guide to Calculating Food Costs
PDF · 28 pages

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Trusted by independent restaurant groups across 12 countries
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Why this matters

"What gets measured gets managed."

If you want to manage your costs you need to start with an accurate measurement of what they are.

Knowing that your overall Gross Profit ("GP") was 72% — the same as knowing your COGS is 28% — is the basics. Knowing your food GP and your beverage GP separately is better. Knowing which ten menu items drive the bulk of your sales, and the GP of those items… well, now we're getting into the pros.

Take my friend Scott. He's doing well and feeling good about what the year has in store. Last year they launched their second outlet, and it looks like they'll beat their target year-one revenue by 35%.

He's feeling good — but he knows that the year before was held together by grit, determination and a desire for it to work, and that he can't keep up that intensity forever. He's brought us on to help sharpen the pencil, bring more structure to operations, and make sure they can keep performing at a high level.

Watch first

A two-minute tour of the guide

What's inside

What's covered in the guide

Five steps, in order — from knowing where you stand today to a report that keeps you honest every month.

1
Set a baseline. To get where you want to go, you need to know where you are.
2
Organize your supplier invoices and ingredient costs.
3
Use our calculators to establish target GPs for all your recipes.
4
Set your stocktake period, choose which products to count, and do a count.
5
Bring it together in our menu report that tracks actual versus target margins.
Know the margins, grow the margins

Take control of your costs — and keep them there.

Foodrazor's Ultimate Guide is designed to help you take control of your costs, set a baseline to measure against, and put tools in your hands to manage your margins going forward.

Download the free guide
e-book spread · margin report

Want to know your margins, but don't have time for do-it-yourself?

Let our team run the numbers for you. We'll audit your menu margins and show you where the profit is hiding.

Try our Margin Audit
What our users say

Operators who stopped guessing.

"

You can see the entire outlet's spendings at a glance, and this makes monitoring costs simple.

AW
Amanda W.
Accountant
"

We can redirect our manpower resources to other areas and still track price fluctuations accurately.

AK
Abdul K.
Owner
"

It will save you heaps of time. The system is easy to use and gives you all the analytics you need to manage your food & beverage costs.

AC
Ashish C.
Owner
"

Foodrazor is a great product that will greatly assist in the time and accuracy of COGS.

TC
Tarren C.
Owner
"

With Foodrazor, we managed to reduce one head count and save costs.

LL
Lewis L.
Sous Chef

Get the Ultimate Guide to Calculating Food Costs

Free, practical, and built for independent operators. Start measuring today — manage tomorrow.

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