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Controlling Food Costs In A Small Restaurant

CONTROLLING FOOD COSTS IN A SMALL RESTAURANT

The key to the success of any business small or large is controlling

costs. In the restaurant business this is the key to success and failure.

There are three main reasons why restaurants fail: undercapitalization,

poor management (the chef started the restaurant, he may be a good

chef but lacks management know-how and skills), lack of controls of

food, portions and inventory. In this article we will only deal with

controlling food costs and portion control using what is called “Menu

Pricing.”

Pricing your menu by menu item is a relatively simple procedure and most

small restaurants do not do this or do not know how. There is software

specifically designed for this purpose. A quick search of the Web and

you will find many solutions and systems available to assist you in this

task. One program called “Recipe Costing & Menu Profitability

Workbook,” will give you the tools to do this task in a concise manor.

However, you can set up a simple functional system by using Microsoft

Excel spreadsheets.

Menu Pricing Sheet

Menu Item _________

Menu Price _______

Ingredients:

Portion Size

Price

Cost:

Main Ingredient:

Other Ingridients:

List other items and price

Total Cost:

Add for Total

It is important to know the food costs of every item on your menu. The

proper costing of each individual menu item should include all the

components of this item including vegetables or any side dishes included

Controlling Food Costs In A Small Restaurant