Cost of sales or “cost of goods sold” ( COGS ) is one of the most important financial indicators for a restaurant. In short, it indicates how much it costs the restaurant to produce menu items.
Fortunately, a few calculations are enough to control these costs.
COGS is important because it is directly relat to swen whatsapp number data profit margins , revenue, and inventory management. A restaurant that does not have a good grasp of its COGS and does not track it regularly can put its financial health at risk.
This article covers the following three topics:
Definition of Cost of Goods Sold
Calculating a Restaurant’s Cost of Goods Sold
6 Tips to Ruce Your Cost of Goods Sold
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For a restaurant, cost of goods sold (COGS) protect from the unexpect: how software assurance keeps organizations running represents the sum of the costs of all the ingrients ne to prepare the menu, from toppings to condiments.
Generally speaking, a restaurant is consider to spend bzb directory about one-third of its gross revenue on COGS. COGS, along with other restaurant costs such as labor, water, electricity, etc., and other overhead expenses, are subtract from gross revenue to determine net profit.
Definition of Cost of Goods Sold
Just as food costs vary from season to season, so does COGS. The cost of producing the same menu item can vary from week to week, month to month, and year to year, which is why it’s important to review it systematically to determine whether the item’s selling price is still generating enough profit or whether it nes to be increas to compensate for fluctuations in COGS.