Actual Food Cost (What You Spent)
Actual food cost provides a more accurate picture of kitchen performance by measuring the food that was actually used during a period, rather than simply what was purchased. It takes stock movement into account, helping operators identify the impact of waste, over-portioning, mistakes, and stock losses on overall profitability.
Formula:
(Opening Inventory + Purchases - Closing Inventory) ÷ Food Sales × 100
How it works:
- Start with the value of your opening stock.
- Add all food purchases made during the period.
- Subtract the value of your closing stock to calculate food used.
- Divide food used by food sales and multiply by 100 to determine your actual food cost percentage.
By tracking actual food cost regularly, operators gain a clearer understanding of real business performance and can identify opportunities to improve efficiency and protect margins.