CoGS vs Direct Operating Expenses

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  • เผยแพร่เมื่อ 7 ก.พ. 2017
  • Restaurant Owners...If you’re confused about the difference between cost of goods sold and direct operating expenses, I have a super simple breakdown (plus a must-have tool) if you want to track those expenses the right way.
    To learn more please either watch the video above or click the link below to read the transcript or listen to the podcast on my website.
    Also, please leave your questions or comments I will answer them all.
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    Ryan Gromfin
    The Restaurant Boss
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ความคิดเห็น • 49

  • @jessl4570
    @jessl4570 6 ปีที่แล้ว +3

    I've been having trouble understanding this for the longest time. Thank you for explaining it in a way that I can understand!

  • @eggbaby6195
    @eggbaby6195 7 ปีที่แล้ว +2

    Many thanks.
    Great work.

  • @kmxhlivn
    @kmxhlivn 5 ปีที่แล้ว +1

    Awesome! Definitely want to get Click Bacon! Thank you so much. Feel so much more less in the dark about running a restaurant. Love your videos.

    • @Therestaurantboss
      @Therestaurantboss  5 ปีที่แล้ว

      So glad they are helping you! clickBACON will be a lifesaver and I promise you will see results!

  • @prosperthedubaiexplorer8980
    @prosperthedubaiexplorer8980 4 ปีที่แล้ว +1

    easy and simple explanation,Awesome material sir

  • @accountingdept304
    @accountingdept304 7 ปีที่แล้ว

    THANK YOU! This is exactly what I needed to sort out COGS and Direct Operating Expenses.

  • @shiru546
    @shiru546 8 หลายเดือนก่อน

    Very informative for someone new to accounting

  • @gabyperez1762
    @gabyperez1762 ปีที่แล้ว +1

    Very interesting. Thank you!!

  • @sergeikhan2268
    @sergeikhan2268 7 ปีที่แล้ว +1

    could you talk about whats the latest camera s and POS systems, security system, etc great video by the way .

  • @lovelyjoyagudera5468
    @lovelyjoyagudera5468 3 ปีที่แล้ว +1

    Thank you Sir. Explained well. 👍

  • @vukanie1
    @vukanie1 5 ปีที่แล้ว +1

    This is helpful "Thank you Sir"

  • @jenninemorel7693
    @jenninemorel7693 ปีที่แล้ว +1

    Operating Expenses =
    "Fixed Expenses"
    Cost of Goods Sold =
    "Varible Expenses"
    Variable expenses are the direct expenses, increase/decrease; directly related with volume of sales of product.

  • @stamatisbournias9473
    @stamatisbournias9473 7 ปีที่แล้ว

    hey boss. great video! have you ever done any videos, on kids menu. and the importance of having them,

  • @eslamkamaleslam5211
    @eslamkamaleslam5211 ปีที่แล้ว

    Hello sir so how to track direct operation expenses and should it including in menu cost and where we put direct operation cost in p&l?
    Thank you

  • @UNIQUEINDIANofficial
    @UNIQUEINDIANofficial 2 ปีที่แล้ว

    Sir COGS include packing materials purchased? Like cake box

  • @sonjamoses6927
    @sonjamoses6927 5 ปีที่แล้ว

    Thank you for the info. So in renovations a bathroom, COGS would be toilets, flooring, paint, drywall, etc? DOEs would be tools and safety ?

  • @benrabahmohamed9657
    @benrabahmohamed9657 4 ปีที่แล้ว +1

    Awesome video good stuff, thanks
    How much does cost this software?

    • @Therestaurantboss
      @Therestaurantboss  4 ปีที่แล้ว

      Hi! You can learn more at www.clickbacon.com!

  • @ItalianStallion1415
    @ItalianStallion1415 3 ปีที่แล้ว +1

    I am NOT a CPA or good at accounting; but, I will give this a shot.
    Anything you put together to make and deliver the burger that a customer gets a receipt for, in my opinion, is CoGS. This includes the napkins, and extra ketchup packets the customer has paid for the privilege to take.
    The cost of cleaning and buying serving trays you serve the food on could be Direct Operating Expenses. The customer did not buy the tray. They give it back. So when you bought trays to serve food its cost could be considered an asset or expense. Cleaning supplies are pretty black and white. The customer is not buying cleaning services, they are buying food.

    • @Therestaurantboss
      @Therestaurantboss  3 ปีที่แล้ว +1

      Restaurant financials are hard until they aren't. LOL! Just takes some studying and a lot of practice. This is why I created clickBACON (clickBACON.com) to help restaurant owners get control of their food, labor and beverage costs.

  • @fAiZrAzAli
    @fAiZrAzAli 3 ปีที่แล้ว

    hi bro, im doing online business and retail business can you help me for below situations:
    1- fuel that i used to deliver order to customers...is it C.O.G (freight cost) or expenses?
    2- im using GDEX service to courier order to customers....is it C.O.G (freight cost) or expenses?
    btw im zero knowledge about accounting....but willing to learn...hope you can teach me

  • @NassahTheOne
    @NassahTheOne 5 ปีที่แล้ว

    Thank you Rayan for your valuable illustration of what is a Direct Operating Expenses.
    However your stating that a CoGS formula should be "sales price/purchase price", shouldn't it be opposite ?
    Thanks for confirming & looking forward for your upcoming videos 🙏🏼

    • @Therestaurantboss
      @Therestaurantboss  5 ปีที่แล้ว +1

      Yes, it should be Purchases / Sales (x100 to get the percentage).

  • @chabarf
    @chabarf 7 ปีที่แล้ว

    Hi! thanks a lot for your great vids!!!, I have a question, where do I put things like gas, or rent? are they considered as vendors?

    • @Therestaurantboss
      @Therestaurantboss  7 ปีที่แล้ว

      They are vendors but they are not Cost of Goods Sold. They are just expenses.

    • @Therestaurantboss
      @Therestaurantboss  7 ปีที่แล้ว

      They are vendors, but they are NOT part of CoGS or DOE, they are just expenses.

  • @beckyvagle2546
    @beckyvagle2546 7 ปีที่แล้ว

    do you have any video's that how how you can figure out how much you should charge for each menu item? I have heard that you figure out how many burgers are in a box, take that number and then times it by 3... and then go from there. If that makes sense..........

    • @Therestaurantboss
      @Therestaurantboss  7 ปีที่แล้ว +1

      That kind of makes sense, but not really. Basically, cost your dish out with everything, then you can multiple by cost by 3 or 4 (that is how you get a 25% to 33% food cost. However, I do the opposite. You know what your customer will pay for an item, so go the other way. Determine where you want to be on cost, then find the portion and quality that is the BEST for what you can charge.

  • @user-bb5sy2ft5z
    @user-bb5sy2ft5z 2 ปีที่แล้ว

    THINGS LIKE THAT

  • @Foxpawz_737
    @Foxpawz_737 6 ปีที่แล้ว +1

    You mentioned direct operating costs should be 4-8%. (4-8% of what please? Of total gross sales?) Thanks so much..

    • @Therestaurantboss
      @Therestaurantboss  6 ปีที่แล้ว +2

      Yep, total sales but not gross, next sales without sales tax.

  • @ienjoyxmas
    @ienjoyxmas 7 ปีที่แล้ว +1

    Will there be a free trial period for "Bacon"? I'm not a restaurant owner but as an accounting student I'm very interested in seeing how the algorithm works for inventory.

    • @Therestaurantboss
      @Therestaurantboss  7 ปีที่แล้ว

      Currently there is not a free trial offer but there is a 60 day satisfaction guarantee.

  • @petraangeles353
    @petraangeles353 2 ปีที่แล้ว

    Is city permit for a customer in constraction company COGS or billable expense?

  • @niteshkumar-qq2eu
    @niteshkumar-qq2eu 4 ปีที่แล้ว +1

    How to control direct food cost without compromising the quality ?,,,thanks

    • @Therestaurantboss
      @Therestaurantboss  4 ปีที่แล้ว

      It's all about negotiating the best prices with your vendors and choosing where you can compromise a little over areas that you cannot.

  • @joven5363
    @joven5363 5 ปีที่แล้ว

    what about the cooks salary?

  • @md.mohiuddinkhan6721
    @md.mohiuddinkhan6721 4 ปีที่แล้ว

    i want to get your 90plan, tkanks

    • @Therestaurantboss
      @Therestaurantboss  4 ปีที่แล้ว

      You can request the download here: therestaurantboss.com/boost-your-restaurant-in-90-days/

  • @lucysverre3418
    @lucysverre3418 6 ปีที่แล้ว

    This is a random video

  • @lucysverre3418
    @lucysverre3418 6 ปีที่แล้ว

    WHAT IS THIS????!!!!!!

  • @Don-qb1vi
    @Don-qb1vi 6 ปีที่แล้ว

    guy always says he'll respond in the videos and never does. Also doesn't answer on Facebook, even if you have cash in hand.