Food costing
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Food costing©Lokendra kumar
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Food costing
This is a most common and important term used in food business to know the profitability at the end of the day/month High food cost = less profitLess food cost = high profit
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In a food business it is very necessary to maintain the quality and quantity of food to justify the value for money paid by guest/customer. And to keep/add long-term relations with them(guest/customer).
Every organizations have their own set standard percentage of food cost & profitability and this must be followed by the chefs or food handlers to maintain the quality of food and to keep organization’s profitability
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How to calculate food costCost of food divided by sale of food x 100 = food cost %It means…If food cost of 1 dish is 500, and sale is 1500, the food cost% would be 33.3%
Basic Formula is…Value of opening inventory + food purchase = total cost value - value of closing inventory = value of food consumed -Value of employee meals= total cost of food soldFood cost % = (total cost of food sold x 100)/total sales value
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Maintaining food cost at 30-33% is ideal condition to keep balance between quality and profitability
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