The Ultimate Guide to Restaurant Cost Control & Profitability

In the razor-thin margin world of hospitality, cost control isn't just a metric—it's survival. This comprehensive guide covers everything from calculating your food cost percentage to advanced menu engineering techniques.

1. Understanding Prime Cost

Your Prime Cost (COGS + Labor) is the single most important number on your P&L. If it exceeds 60%, you are likely losing money.

2. The Food Cost Formula

You can't manage what you don't measure. Learn the exact formula: (Beginning Inventory + Purchases - Ending Inventory) / Food Sales.

3. Menu Engineering

Turn your menu into a sales machine by categorizing dishes into Stars, Plowhorses, Puzzles, and Dogs.

4. Waste Minimization

Food waste is literally throwing money in the bin. Implement our 5-step waste tracking protocol today.