Applies to:
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The cost of food is one of the biggest operating expenses for a restaurant business. With perishable ingredients and fluctuating sales, controlling food costs in restaurants can be extremely challenging.
When you misjudge ordering or overspend on food costs, it directly affects your bottom line. Tracking your theoretical food cost is the first step to improving the efficiency of your inventory management system.
Theoretical food cost is what your food costs should be for a period based simply on what you sold and the cost of those items according to the latest ingredient prices. It assumes zero breakage, shrinkage, or wastage.
To arrive at accurate theoretical food costs, you need:
Accurate recipes that account for everything that goes into a dish
The most recent ingredient prices for accurate recipe costs
Exact sales figures you can obtain from the POS
Setting up the inventory system to automatically sync sales with your kitchen inventory will require a little setup. We know that your menu item is dynamic, so there are two ways to set up recipes for your menu items.
In the steps below you will learn how to:
Tie-in ingredients without variations
Step 1
In the products section, you’ll be able to add Tie-in ingredients to create recipes as you add new products, or change the Tie-in ingredients to an existing menu item.
Step 2
Scroll to the advanced features at the bottom and click Tie-in.
Step 3
To create the receipt, click on the drop-down menu to search for the first food ingredient, including the quantity, and select the unit of measurement.
You can also include additional costs such as packaging, wrapping, or condiment packs
Once you are done, you can click on Add.
Tie-in ingredients with variations
Step 1
From the product section, select the menu item with variations and scroll down to the advanced features.
At the bottom, you’ll see all the Variations that you have previously set up. Click on the variation to open the options.
Step 2
Enter the ingredients to account for the different measurements and ingredients. Do this for each variant.
Step 4
Include any additional costs such as packaging, wrapping, sauces, or condiment packs
Step 5
When you’re done, don’t forget to click on update to save the changes you have made. And you’re done.
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