Cost Control and Kitchen Management
Food cost and yield
Food cost percentage = (beginning inventory + purchases − ending inventory) ÷ food sales. Standard recipes give a per-portion cost; add a Q factor for condiments, garnish and complimentary items. Yield percentage = edible-portion weight ÷ as-purchased weight. As-purchased cost per usable pound = as-purchased price per pound ÷ yield percentage. Menu price = portion food cost ÷ target food cost percentage. Traps: using as-purchased cost for edible-portion costing, and confusing markup with margin.
Pricing and the P&L
Contribution margin is selling price minus variable (food) cost. Prime cost is food cost plus labor cost, often targeted near 60–65% of sales depending on the operation. Break-even sales = fixed costs ÷ (1 − variable cost percentage). Monitor labor with sales per labor hour and schedule to forecast covers, not habit; overtime quietly destroys a labor budget.
Inventory and control
Use FIFO, par levels and requisitions; take physical inventory on a consistent schedule; investigate variances between theoretical and actual usage. Receiving and storage discipline prevents both spoilage and theft: count, weigh, check temperature, initial the invoice, and store immediately.
Worked example
Beef tenderloin costs $8.00 per pound as purchased and yields 75%. Edible-portion cost = $8.00 ÷ 0.75 = $10.67 per pound. An 8-ounce portion (0.5 lb) costs $5.33. At a 30% target food cost, menu price = $5.33 ÷ 0.30 = $17.78, rounded to $17.95.