Do You Know What Your True Food Costs Are?

Do you know how to calculate your true food costs? Do you know if every item on your menu is profitable? It's not always black and white. The avian flu affected over 48 million birds that lead to bulk prices spiking 63 percent in a matter of two to three weeks. And immigration policies also directly affect the supply and demand market. When the sharp rise in eggs from the avian flu hit, Panda Express and other chains quickly removed eggs from their lineup. Fried rice without eggs (and replaced with corn) isn’t really the same, but perhaps not worth a 63 percent uptick in price to the consumer. But without staying on top of food costs and reacting appropriately, Panda Express would have lost money on every serving of fried rice.Small percentages lost on food margins can lead to large amounts of lost revenue.

Why does this matter to you? Because with margins for restaurants getting tighter with increased labor costs due to minimum wage increases and higher rents, now more that ever…