Restaurants, caterers and other foodservice businesses use a standard food cost formula to determine their profit margin on food sales. A profitable restaurant normally has a food-cost percentage of anywhere from 28 to 35 percent.
To calculate food costs for a specific month, restaurant owners add the value of the inventory at the beginning of the month to the cost of any purchases made throughout the month. They then subtract the value of the inventory left at the end of the month to determine food costs and divide food costs by gross sales for the month to get a food cost percentage.
Food costs vary based on the type of restaurant. A fast-food or casual dining restaurant normally has a lower food-cost percentage than a fine dining establishment.Learn More
"Cost prohibitive" describes something that is difficult to obtain because of its cost. In this phrase, the word "prohibitive" is used as an adjective, and it refers to the act of preventing the use or purchase of something. The word "cost" clarifies that the prohibitive nature is due to the cost of the item.Full Answer >
The average cost of electricity per kilowatthour across all sectors of the United States' economy was 10.01 cents in April 2014, reports the U.S. Energy Information Administration (EIA). Residential costs were 12.31 cents per kilowatthour in April 2014, while commercial costs were 10.40 cents.Full Answer >
The average food budget for a single person is about $302 per month, according to LowerYourSpending.com. Based on data from the U.S. Department of Agriculture, LowerYourSpending.com notes that grocery spending within USDA guidelines ranges from about $198 to about $450 depending on the person's age and other factors.Full Answer >
To determine the square footage of a rectangle, multiply the length by the width. The answer is in given square units. For example, if a lawn is 20 feet by 30 feet, the measurement is 600 square feet. This is also referred to as "area."Full Answer >