Bo - CPA here. Another suggestion for tracking food costs is tracking purchasing variances. Once your menu prices are established and you have calculated your costs using your Recipe Cost Cards you need a way to track price changes on your purchases. For example, if your standard cost for T-Bone Steaks is $8.00 per pound and you have used this figure on your Recipe Cost Cards you need a way to identify price increases. It doesn't make sense to change the cost on your Recipe Cost Cards and the price on the menu each time you purchase products. In addition, changing the cost on the Recipe Cost Cards does not allow you to track price changes. Therefore, if you track the Standard Costs for your, say, 20 biggest purchases, then you can record these variances from the vendor invoice. You would record the purchase at the Standard Cost (i.e. $8.00 / lb) to cost of goods sold (or inventory) and then record the variance as a separate line item on the Income Statement. This will allow you to account for price changes and will tell you what caused this variance. Otherwise, you have no way to track this variance. Hope this helps. Thanks,
What's up rest-RON-ters! Check out the latest video on the biggest killers of food cost and some killer tips and tricks for fixing these common problems. Time to increase profits! Good luck...
Bryant your stuff is good with some good impactful information but everything else is terrible. What's that you ar having a knife with some blood in it in the thumbnail. Looks scary and ridiculous. Think man. Try to be little bit more professional. I like your stuff by the way. Be confident 👍
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Bo - CPA here. Another suggestion for tracking food costs is tracking purchasing variances. Once your menu prices are established and you have calculated your costs using your Recipe Cost Cards you need a way to track price changes on your purchases. For example, if your standard cost for T-Bone Steaks is $8.00 per pound and you have used this figure on your Recipe Cost Cards you need a way to identify price increases. It doesn't make sense to change the cost on your Recipe Cost Cards and the price on the menu each time you purchase products. In addition, changing the cost on the Recipe Cost Cards does not allow you to track price changes.
Therefore, if you track the Standard Costs for your, say, 20 biggest purchases, then you can record these variances from the vendor invoice. You would record the purchase at the Standard Cost (i.e. $8.00 / lb) to cost of goods sold (or inventory) and then record the variance as a separate line item on the Income Statement. This will allow you to account for price changes and will tell you what caused this variance. Otherwise, you have no way to track this variance.
Hope this helps.
Thanks,
I love this man thank you so much
Love your videos, can you please adjust your volume for us
Thanks for the feedback Richard. Done! Warm regards, Bo.
I have to second that. It’s very difficult to hear.
What's up rest-RON-ters! Check out the latest video on the biggest killers of food cost and some killer tips and tricks for fixing these common problems. Time to increase profits! Good luck...
9 (cents/oz) x 7 (oz) = 63 cents not 64....
Good catch! Thanks for the call out.
Im just having an issue tryin to figure out how a cuban sandwich isnt profitable(!)
Bryant your stuff is good with some good impactful information but everything else is terrible. What's that you ar having a knife with some blood in it in the thumbnail. Looks scary and ridiculous. Think man. Try to be little bit more professional. I like your stuff by the way. Be confident 👍