Steve
12-13-2008, 08:12 PM
I was reading the Paula Deen book "It ain't all about the cooking," and I saw some advice I wanted to share with you all if you are thinking of opening your own restaurant one day.
She said that food costs should be no more than 1/3 of the gross receipts.
Other costs such as overhead, rent, utilities, salaries, insurance, equipment, pots, pans and repairs should be no more than 1/3 of the gross receipts.
Lastly profit should be 1/3 of the gross receipts.
So to sum that up.
33 1/3 % - food cost
33 1/3 % - overhead
33 1/3 % - profit
I hope this helps you out in your business planning.
Read the book for more info.
She said that food costs should be no more than 1/3 of the gross receipts.
Other costs such as overhead, rent, utilities, salaries, insurance, equipment, pots, pans and repairs should be no more than 1/3 of the gross receipts.
Lastly profit should be 1/3 of the gross receipts.
So to sum that up.
33 1/3 % - food cost
33 1/3 % - overhead
33 1/3 % - profit
I hope this helps you out in your business planning.
Read the book for more info.