Remove Back of House Remove Budgeting Remove Portion Control Remove Pricing
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Prime Costs: Understanding and Application for Restaurants

Synergy Suite

They serve as a compass, guiding decisions on pricing strategies, menu development, and staffing levels, ultimately influencing the delicate balance between offering high-quality cuisine and ensuring the establishment’s profitability. For restaurant owners and managers, understanding and effectively managing prime costs are paramount.

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How to Calculate Food Costs in Your Restaurant

Synergy Suite

For example: $50,000 worth of initial inventory + $25,000 worth of inventory purchased – $45,000 worth of ending inventory = $30,000 in actual costs (or COGS) This calculation is more accurate than cost-per-dish because you’re using tangible inventory and purchase price numbers. Raise menu prices. Examine your menu.

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Restaurant Operations Overview: What You Need to Know

7 Shifts

Portion control in the kitchen saves on inventory, which helps keep the restaurant profitable. On the other hand, skimping on ingredients increases the likelihood that a guest won't come back – and may even tell others not to do the same. Ultimately, every decision made in a restaurant boils down to finances.

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