How to Calculate Food Cost in a Restaurant. It doesn't matter that you have the best menu in town, a high-traffic location, beautiful decor and rave reviews if your restaurant charges $12 for a ...

You probably already know how to calculate a profit margin: (Selling Price – Cost of Goods) / Selling Price = Gross Profit; For example: an item that sells for $10, and that costs $3, would generate ...

According to the Restaurant Report website, labor costs in the food and beverage industry account for 22 to 40 percent of total sales. In other words, for every $1 in sales, a restaurant spends up ...