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3 Food Cost Percentage Formulas

Would you like to know what the food cost percentage formula is for your restaurant? What if I told you there are actually three food cost percentages? Watch this video, or continue reading below, to learn what they are and how to calculate them. 

Most restaurant owners are paying attention to the wrong number. Because they don't take inventory, they're dividing food purchases by sales to come up with a food cost percentage, but it's wrong. Really, there are three food cost calculations...

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Use Menu Engineering to Increase Restaurant Profits

Menu engineering is one way to increase restaurant sales. If you understand that your menu is a sales tool, you should maximize it to maximize your restaurant sales. Watch this video, or keep reading below, to learn more about menu engineering and what you need to do first to make it effective. 

Before you can really engineer your menu, you must have recipe costing cards in place for every item on your menu. If you don't have these in place, please search my YouTube channel for...

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What Is a Recipe Cost Calculator

 Are you looking for that magical recipe cost calculator? Most restaurants don't use any kind of recipe cost calculator and have a higher food cost and lower profits because they don't know what their menu items cost to make. Watch this video to learn the magic of a recipe cost calculator and how to cost out your recipes. 

When it comes to recipe costing cards, number one, you've got to get every item that you're going to buy. Any product that you buy from any distributors - small...

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What Is the Prime Cost Formula

Have you heard about prime cost and wondered what the definition of prime cost was? Restaurant prime cost is the one number you need to know and manage to make any money in the restaurant business. Watch this video (or keep reading) to learn the prime cost formula and where to find the numbers in your restaurant. 

For decades, restaurants have been run with one key number in mind. This magic number ensures that the owners make money. It’s called prime cost. To old timers like me,...

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How to Run a Restaurant

Do you want to know how to run a restaurant successfully? How to make money in the restaurant business? Watch this video (or keep reading) to learn how to run a restaurant. 

As an expert in the restaurant industry, I have seen it all when it comes to restaurants. I've spent almost 30 years working with restaurant owners and managers. I've seen people succeed incredibly, and I've seen people fail terribly. One of the critical pieces to running a restaurant successfully is understanding...

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What Is the Food Cost Formula

Understanding your food cost in your restaurant is very important. Let's cover the food cost formula. Watch this video (or keep reading) to learn the food cost formula.  

When you want to find your restaurant's food cost, it would be nice to have a food cost calculator. But since that's really lacking, let's instead focus on the food cost formula so you can calculate it yourself anytime. 

What Is the Food Cost Formula?

  • Beginning inventory (what you started with on the...
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What Are Restaurant Startup Costs

restaurant costs Aug 08, 2019

What are restaurant startup costs? A better question is what does every restaurant have to have in place before they can be truly successful?

Watch the video below (or keep reading) to learn the costs you must consider when starting up a restaurant.

Many restaurant owners operate from a more spontaneous place. I'm very familiar with it as I operate the same way. It's more of a "Ready. Fire. Aim." kind of approach. You just want to get stuff done and it's hard to be patient and take the...

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Prime Cost Is Your Key to Making Money

Uncategorized Jul 15, 2019

Do you know your prime cost? 

For decades, restaurants have been run with one key number in mind. This magic number ensures that the owners make money. It’s called prime cost. To old timers like me, it used to be called controllable expenses, in the control of management on a daily basis on how they hire, fire, schedule their team members to purchasing and utilizing products. 

Prime Cost = Total Cost of Goods Sold + Total Labor Cost

My goal is to teach anyone who is...

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New Restaurant Training Courses Coming Soon

Hi restaurant friends! This is David Scott Peters, restaurant systems expert, speaker, trainer, coach and consultant. For the past 16 years, you've known me as the founder of TheRestaurantExpert.com and the creator or SMART Systems Pro, online restaurant management software.

After building the industry's best all-in-one restaurant operations software on the market, my business partner (who was a former member) and a group of current members (users of the software), got together to buy my...

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