Explore Our Restaurant Bill Sample for Product Management

Restaurant bill sample for Product Management

hey billy we're really excited to have you here on our team starting with us today thank you i'm so happy to be here that's awesome and i just wanted to remind you that you have an opportunity to earn up to 30 000 as a bonus this year for keeping food cost under 30 yeah this is awesome you can totally count on me great do you have any questions just one what's food cost [Music] hey everybody ryan gromfin here author speaker chef russian tour founder of therestaurantboss.com as well as click bacon and scalemyrestaurant.com i'm so excited to be making this video we're basically remaking a video from over seven years ago one of the first videos i ever put up on youtube and to this date it's one of my most popular and most viewed videos it's all about food cost everything you've ever wanted to know about food cost the formulas used to calculate it the questions i get asked the most about food costs and some of my simple ways to calculate food cost in your restaurant coming up right now but before we do that i want to take a moment and thank my sponsor for this video radiant digital signage you know without all of you viewers watching these videos commenting liking subscribing and sharing as well as the support of sponsors like radiant i wouldn't be able to keep bringing you these amazing videos free of charge so i really want to thank radiant for bringing us this video today we've been in partnership with radiant digital signage for over a year now and in my opinion they are the absolute best in the business if you're looking for a simple do-it-yourself solution there are other options out there that are very expensive and very complicated and you need a designer to set up your menu and your signage but with radiant you can set up your menu your signage your advertising you could put youtube videos social media weather any promotions you want on any television in your restaurant super simple super effectively and it's super easy all you need is this little guy right here which plugs into the back of any tv and a subscription through radian which includes access to a massive library of templates so you can create a menu or whatever you want in just a few minutes in fact if you visit our website using the link in the card right up there you can watch a video of us setting up a digital menu in about 10 minutes from opening the box to pushing the menu live to a tv and now radiant has an integration with toast so for all of uto's pos users out there you can automatically import your menu into radiant and then style it any way you want plus if you run out of an item it gets taken off of your digital menus automatically for more information or to set up a demo with a product specialist at radiant or to receive the special restaurant boss pricing with radian please click on the link below this video so the first major point i want to bring up when we're talking about food cost is the difference between food cost and plate cost this gets confused a lot food cost is the cost of the food that you use or that you purchase in a specific period of time across your entire restaurant plate cost is just the cost to produce one specific plate so please when you're emailing me questions or commenting below or just having conversations about food cost in general make sure to use the correct verbiage the difference between food cost and plate cost because this can get a little confusing as we move forward here to calculate your food costs simply divide the amount you spend on food in a period by the amount of food sold in that same period so here's the formula purchases divided by sales equals food cost then just multiply that food cost by 100 to get a percentage so as an example let's say you purchased 2500 in food this week and sold 10 000 in food then 2500 divided by 10 000 equals 0.25 multiply that by 100 and you get your 25 food cost some of you are going to want to use inventory to create a more accurate food cost we're going to talk about the pluses and minuses of this later in the video but for now let me share that formula with you to calculate food costs using inventory we first need to figure out our usage to figure out usage we need to take beginning inventory plus purchases and then subtract ending inventory which will give you usage so then we take our usage and divide that by sales which equals your food cost and again just multiply by 100 to get your percentage so as an example here say you started a week with one thousand dollars in food on your shelves you purchased two thousand and then ended the week with five hundred of food left on your shelves that would be one thousand plus the two thousand you purchased which is 3 000 that's 3 000 in food available but then at the end of the week you have 500 in inventory so now you're left with 2500. now again as in the previous example if we take that 2500 divided by your 10 000 in food sales for this particular week you're going to get 0.25 multiply that by 100 and you get your 25 food cost now the same formula applies to plate cost let's just use smaller numbers let's say that you're costing out a burger on your menu the burger costs you two dollars and fifty cents to make it and you sell it for ten dollars well then we just simply divide the two dollars and fifty cents divided by the ten dollars that you sell it for and you're going to get the same 0.25 times 100 which is 25 so in this case your burger cost the plate cost to produce your burger is also 25 so the question i get the most is ryan is there an inventory system that you recommend i want to get a very accurate food cost in my restaurant the answer is no i personally hate restaurant inventory and unless your restaurant is doing approximately five million dollars out of its location i do not suggest that you take the time the energy the effort and the money that it's going to take you to get an accurate food cost using the inventory method which is why we created a software tool called click bacon now click bacon will allow you to get a very accurate weekly monthly rolling quarterly yearly food cost labor cost beer costs wine cost total cost of goods sold direct operating expense prime cost whatever it is that you want in your restaurant without having to take inventory for more information on why i hate inventory so much go ahead and click that link above i've got a whole video about that another thing that people ask me is ryan how come click bacon doesn't do this or do you have a software tool or a spreadsheet that you recommend for costing out particular recipes for getting plate costs and again my answer is no and i know a lot of people out there are going to think this is crazy but when i was operating restaurants and even still to this day working with clients when we're trying to figure out the plate cost we basically just use a scratch piece of paper because the reality is even if you're accurate or if you're off by a couple of pennies that's not going to change the price you're going to charge for this item to your guest you're not going to change your hamburger price from 10 35 to 10.45 because it costs you two cents more to make it when in reality what you're gonna do or what you should do and in that video we're gonna explain it is you should price your products at where the market demands now we also are only interested in your full menu because you may sell french fries at a 15 food cost but then a cheeseburger with bacon and avocado might be at a 50 food cost because at a 25 food cost your guests aren't going to pay the 17 or 18 that you would need to charge for that burger but because it's more expensive at a 50 food cost you're still making enough money again i don't want to get into too much detail in today's video i just wanted to go over some of the more common questions and and topics that are brought up regarding food cost while this topic of food cost is incredibly important and incredibly in-depth i could literally spend hours talking about food cost i really just wanted to recreate this video from over seven years ago that gives you the overview my most important thoughts on food cost if you're interested in learning more about food cost come to the restaurantboss.com go to our free videos or our video blog click in the search box or in the category for food food cost um cost savings that we have different categories in there and you're gonna find a ton of videos related to this topic and trust me i'm very opinionated on what i think you should be spending your time on and what i think you shouldn't well food cost is very important and i know a lot of you out there are going to say that this is terrible that ryan you have to be taking inventory in a restaurant what are you talking about i have different thoughts on it i know how busy you are as a restaurant operator and i think you should be spending your time worrying more about hiring a great staff training them making sure you're exceeding your guests expectations and getting your food costs don't get me wrong it's important but not down to the penny not unless you're up in that four five million dollar a year range you just shouldn't be spending too much time on that i hope you enjoyed today's video and remember systems create freedom freedom creates value and value creates scale have an absolutely amazing day bye-bye want to improve your skills as a manager and make more money did you get handed the manager job and weren't given the support you need are you nervous about applying for a restaurant manager position managing restaurants bars and kitchens is not easy i know i have been there i want to help the difference between where you are now and where you want to be is a plan and some new tools that is why i created the restaurant manager certification it's a boot camp for aspiring restaurant leaders designed to simplify your path to the top learn more at the restaurantboss.com forward slash manager i hope you enjoyed this week's training video if you haven't subscribed to our channel yet would you go ahead and smash the like button right up there so you can get notified every week when we release a new free training video i've also gone ahead and put a couple of videos for you here and here that i think you're going to enjoy remember systems create freedom freedom creates value and value creates scale manage systems develop people and be awesome