![]() Your percentage of costs will be largely determined by how much you sell something for versus how much it costs to produce. Generally accepted ratios vary from market to market and concept to concept. However, if your business is in an expensive market, you should aim for an even lower percentage. As a general rule, your combined CoGS and labor costs should not exceed 65% of your gross revenue – this would be a major inventory mistake. These ratios are usually categorized as follows: Revenue / Costīeverage (non-alcoholic) cost / Beverage (non-alcoholic) sales*īottled (canned) beer cost / Bottled (canned) beer sales**īar mix and consumables cost / Liquor sales***Īcceptable ratios are largely determined by your regional market and business model, and can vary from concept to concept. Normally, CoGS is expressed as a ratio of a percentage of cost-to-sales. Purchases during that same period are all food and beverage invoices added to your inventory.Įnding Inventory is the food and beverage items you still have at the end of the same period.īest practices in managing restaurant costs recommend consistently comparing what should have happened (theoretical CoGS) with what actually happened (actual CoGS) – and then work on narrowing the gap. The amount of food and beverage used: īeginning Inventory is the amount of food and beverage you have in stock on the first date for the date range you’re reporting on. The amount of food and beverage you bought: The amount of food and beverage you start with: Raw material costs can change, and then there’s waste, inconsistent portioning, and shrinkage (the polite term for employee theft) – these can all create differences in theoretical versus actual costs. Your accountant will produce your actual cost using your inventory and invoices as inputs. But the cost of the food and beverage you actually used is not always equal to what you should have used based on your recipes. “Theoretical Cost” is what you should have used: your ideal spend. It’s important to note that CoGS is separate from theoretical costs. “Cost of Goods Sold” is the raw material costs of your menu items – the actual amount of food and beverage used to produce your food and beverage sales. ![]() To make restaurant inventory management a breeze, here’s a quick guide to calculating CoGS and what’s considered standard for your type of venue. As a restaurant owner, it’s important that you know how these ratios are calculated and what they can tell you about the general health of your business. Your Cost of Goods Sold (CoGS) lets you know how well you are pricing your products and controlling your inventory. Sell more treats in less time and streamline operations with the POS bakeries love.Ĭonquer the rush, maximize margins, and boost loyalty with a powerful cafe POS. Keep lines moving and drive repeat business with an intuitive POS made for coffee shops. Serve drinks faster and sell more top-shelf upgrades with the POS built for bars.ĭeliver quality and convenience at speed with the POS built for fast casual needs.Įxecute large orders on tight deadlines with an intuitive platform built with catering in mind. Reach more customers and keep them coming back with a POS built to run at QSR speed. Manage your dining room and your wine shop with the all-in-one solution wineries prefer. Increase beer sales and reduce spillage with an intuitive POS breweries love.ĭeliver elevated experiences and exceptional service with a seamless POS platform. Turn more tables and delight guests with a POS built for family style restaurants. Turn long lines into large profits with a fast and reliable POS for food trucks. ![]() Turn more tables, upsell with ease, and streamline service with a powerful system built for FSRs. From food trucks to FSRs, get the POS built for restaurants.
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