Food Cost includes Ingredients, Packaging & Labor (to make that particular product). This is called COST OF GOODS SOLD
Industry Standard for Food is between 25 and 33% Food Cost
Industry Standard for Labor is between 25 and 35% (labor, employer paid taxes & benefits)
Labor Cost divided by Sales = the % of sales that Labor costs the restaurant
Industry Standard of Restaurant's Prime Costs of Food, Beverage & Labor is between 60 and 68 cents for each dollar in Sales
Industry Standard for rent is between 6-7% of Sales
Food Cost
30% markup
35% markup
40% markup
45% markup
50% markup
Food Cost
20% markup
15% markup
10% markup
$1.00
$1.00
x300%=
$3.00
$1.00
x350%=
$3.50
$1.00
x400%=
$4.00
$1.00
x450%=
$4.50
$1.00
x500%=
$5.00
$1.00
$1.00
x200%=
$2.00
$1.00
x150%=
$1.50
$1.00
x100%=
$1.00
(profit) markup
+cost
$3.00
+$1.00
$3.50
+$1.00
$4.00
+$1.00
$4.50
+$1.00
$5.00
+$1.00
(profit)markup
+cost
$2.00
+$1.00
$1.50
+$1.00
$1.00
+ $1.00
sell for:
$4.00
$4.50
$5.00
$5.50
$6.00
sell for:
$3.00
$2.50
$2.00
Food Cost %'s can be figured this way: Cost divided by Sale Price = Food Cost %
Food Cost $1.00
$1.00
÷ $4.00
$1.00
÷ $4.50
$1.00
÷ $5.00
$1.00
÷ $5.50
$1.00
÷ $6.00
Food Cost
$1.00
$1.00
÷ $3.00
$1.00
÷ $2.50
$1.00
÷ $2.00
Food Cost % is
25%
22%
20%
18%
16%
Food cost %
33%
40%
50%
Labor Cost divided by Sales = the % of sales that Labor costs the restaurant
(take sale x % (25 or 35% sample) = cost of labor (that it can NOT exceed) to make that product)
at 25% Labor:
sold for
x 25% labor =
labor cost  can
NOT exceed
$4.00
x 25% =
$1.00
$4.50
x 25% =
$1.13
$5.00
x 25% =
$1.25
$5.50
x 25% =
$1.38
$6.00
x 25%=
$1.50
sold for
x 25% labor=
labor cost can
NOT exceed
$3.00
x 25%
=75¢
$2.50
x 25%
=63¢
$2.00
x 25%
=50¢
profit markup
- 25% labor=
gross profit
$3.00
-$1.00
= $2.00
$3.50
-$1.13
=$2.37
$4.00
-$1.25
=$2.75
$4.50
-$1.38
=$3.12
$5.00
-$1.50
=$3.50
profit markup
- 25%labor=
gross profit
$2.00
- 75¢
=$1.25
$1.50
- 63¢
=87¢
$1.00
- 50¢
=50¢
at 35% Labor:
sold for
x 35% labor =
labor cost can
NOT exceed
$4.00
x 35%
=$1.40
$4.50
x 35%
=$1.58
$5.00
x 35%
=$1.75
$5.50
x 35%
=$1.93
$6.00
x 35%
=$2.10
sold for
x 35% labor=
labor cost can
NOT exceed
$3.00
x 35%
=$1.05
$2.50
x 35%
= 88¢
$2.00
x 35%
= 70¢
profit markup
- 35% labor=
gross profit
$3.00
-$1.40
=$1.60
$3.50
-$1.58
=$1.92
$4.00
-$1.75
=$2.25
$4.50
-$1.93
=$2.57
$5.00
-$2.10
=$2.90
profit markup
- 35% labor =
gross profit
$2.00
-$1.05
= 95¢
$1.50
- 88¢
= 62¢
$1.00
- 70¢
= 30¢
Rent-- Industry Standard is between 6-7% of Sales
7% of Sales
28¢
32¢
35¢
39¢
42¢
7% of sales
21¢
18¢
14¢
Sold For
-Food Cost
-25% labor
-7% rent
= gross profit
$4.00
-$1.00
$1.00
-25¢
=$1.75
$4.50
-$1.00
-$1.13
-32¢
=$2.05
$5.00
-$1.00
-$1.25
-35¢
=$2.40
$5.50
-$1.00
-$1.38
-39¢
=$2.73
$6.00
-$1.00
-$1.50
-42¢
=$3.08
Sold For
-Food Cost
-25% labor
-7% rent
= gross profit
$3.00
-$1.00
- 75¢
- 21¢
= $1.04
$2.50
-$1.00
- 63¢
- 18¢
= 69¢
$2.00
-$1.00
- 50¢
- 14¢
= 36¢
To summarize
at 25% Labor
if your Food
Markup % is:
30%
35%
40%
45%
50%
If your Food
Markup% is
20%
15%
10%
Then your Food
Cost % is
25%
22%
20%
18%
16%
Then your
Food Cost % is
33%
40%
50%
If your
Labor % is
25%
25%
25%
25%
25%
If your
Labor % is
25%
25%
25%
Rent % is
7%
7%
7%
7%
7%
Rent % is
7%
7%
7%
=
57%
54%
52%
50%
48%
=
65%
72%
82%
left over %
43%
46%
48%
50%
52%
left over %
35%
28%
18%
gross profit
$1.75
$2.05
$2.40
$2.73
$3.08
gross profit
$1.04
69¢
36¢
left over %
x gross profit =
net profit
43%
x $1.75 =
75¢
46%
x $2.05=
94¢
48%
x $2.40=
$1.15
50%
x $2.73=
$1.37
52%
x $3.08=
$1.60
left over %
x gross profit=
net profit
35%
x $1.04=
36¢
28%
x 69¢ =
19¢
18%
x 36¢ =

left over is:
Equipment, Insurance, Legal (licenses,permits, incorporation etc), Accounting etc.
7% of Sales
28¢
32¢
35¢
39¢
42¢
7% of Sales
21¢
18¢
14¢
Sold For
-Food Cost
-35% labor
-7% rent
= gross profit
$4.00
-$1.00
-$1.40
- 28¢
$1.32
$4.50
-$1.00
-$1.50
- 32¢
$1.68
$5.00
-$1.00
-$1.75
- 35¢
$1.90
$5.50
-$1.00
-$1.93
- 39¢
$2.27
$6.00
-$1.00
-$2.10
- 42¢
$2.48
Sold For
-Food Cost
-35% labor
-7% rent
= gross profit
$3.00
-$1.00
-$1.05
21¢
94¢
$2.50
-$1.00
- 88¢
18¢
44¢
$2.00
-$1.00
- 70¢
14¢
16¢
To summarize
at 35% Labor
if your Food
Markup % is:
30%
35%
40%
45%
50%
if your Food
Markup % is:
20%
15%
10%
Then your Food
Cost % is
25%
22%
20%
18%
16%
Then your
Food Cost % is
33%
40%
50%
If your
Labor % is
35%
35%
35%
35%
35%
If your
Labor % is
35%
35%
35%
Rent % is
7%
7%
7%
7%
7%
Rent % is
7%
7%
7%
=
67%
64%
62%
60%
58%
=
75%
82%
92%
left over %
33%
36%
38%
40%
42%
left over %
25%
18%
8%
gross profit
$1.32
$1.68
$1.90
$2.27
$2.48
gross profit
94¢
44¢
16¢
left over %
x gross profit =
net profit
33%
x $1.32=
44¢
36%
x $1.68=
61¢
38%
x $1.90=
72¢
40%
x $2.27=
91¢
42%
x $2.48=
$1.04
left over %
x gross profit =
net profit
25%
x 94¢=
24¢
18%
x 44¢=

8%
x 16¢=

left over is:
Equipment, Insurance, Legal (licenses, permits, incorporation, etc), Accounting etc.
                   
             
COST
45% markup
45% markup
30% markup
30% markup
30% markup
15% markup
Wine Btl $5;
4 glasses at $1.25 ea
$1.25
x 450%
=$5.63
Garlic Bread
50¢
x 450%
= $2.25
2 Taco's
$1.00
x 300%
=$3.00
2 Eggs 11¢ea
2 Toast 6¢ea
HashB 35¢
2 Bacon 40¢ ea
Butter/Jam 12¢
$1.61
x300%
=$4.83
Chicken Parm $1.25
Fett Alf $1.50
$2.75
x300%
=$8.25
Filet Mignon $5.00
Baked Pot with Butter
& S Cream $1.00
Veg 50¢
Bun/Butter 50¢
=$7.00
x150%
=$10.50
(profit) markup
+ cost
$5.63
+$1.25
=$6.88
$2.25
+ 50¢
=$2.75
$3.00
+$1.00
=$4.00
$4.83
+$1.61
=$6.44
$8.25
+$2.75
=$11.00
$10.50
$7.00
=$17.50
sell for:
$7.00
$2.75
$4.00
$6.50
$11.00
$17.50
Food Cost %'s can be figured this way: Cost divided by Sale Price = Food Cost %
Food Cost
$1.25
50¢
$1.00
$1.61
$2.75
$10.50
Food Cost %
18%
18%
25%
25%
25%
60%
  Wine gross profit
$5.63
Garlic Bread gross
profit
$2.25
2 Taco's gross profit
$3.00
Eggs gross profit
$4.80
Chicken gross profit
$8.25
Filet dinner gross profit
$10.50
There's more money to be made selling Wine, Chicken & Filet Mignon in gross profit
than some of the cheaper menu items here.
Train your staff to UPSELL
             
Restaurant Profit Charts