How To Calculate Food Cost Percentage (& SAVE $$) | Cafe Restaurant Management Tips 2022

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  • Опубліковано 31 гру 2024

КОМЕНТАРІ • 374

  • @WilsonKLee
    @WilsonKLee  5 років тому +10

    💎 [FREE COURSE] Learn how to start an online food business - swiy.co/start-FPF-program
    🚀 [FREE COURSE] Learn how to start a restaurant/brick&mortar business - swiy.co/Start-PRO-Academy

    • @thelifeboat7
      @thelifeboat7 4 роки тому

      Can you mentor me in this area in terms of pricing? Thanks

    • @miconyo
      @miconyo 4 роки тому

      How much?

    • @maggiearellano6944
      @maggiearellano6944 4 роки тому

      Where are you located?

    • @addyrose5184
      @addyrose5184 4 роки тому +1

      I see a lot of comments about the music and personally I really liked it and didn’t feel to it took away from anything. Also great video, really helps put everything into perspective

    • @tpaobrien
      @tpaobrien Рік тому

      That music, get rid of it, it’s like a toothache.

  • @padangbakingschool8931
    @padangbakingschool8931 4 роки тому +308

    I think you better talk without music background.its better and can feel the atmospher.thank you

    • @WilsonKLee
      @WilsonKLee  4 роки тому +25

      yup. new vids dont' have bg music.

    • @luxtrichoma8458
      @luxtrichoma8458 3 роки тому +4

      @@WilsonKLee did the cost of goods sold jump from 40% to 46% as an error . It was $2.00 then $2.30

    • @only4263
      @only4263 2 роки тому +2

      @@WilsonKLee I LIKE THE MUSIC WILSON

    • @abtheorychannel
      @abtheorychannel 2 роки тому +7

      Yup.too loud

    • @kareeseboone6011
      @kareeseboone6011 2 роки тому +5

      @@WilsonKLee Please update this one with no music.. I can't even listen the video past 6 minutes

  • @lethal2453
    @lethal2453 3 роки тому +7

    The way i did it,and admittedly I didn't know at the time if would work, was my Plain Ham burger was the same price as everyone else, but we made it to basically break even gross inc wages, consumables and energy, The burger was huge and people loved it, then the add-ons to those burgers were 200 to 500% markup. And we went from selling 150 burgers a week, to 400 burgers. And it ended up becoming my strategy, to draw people in and break even on budget and make money from the rest of the food bought around the burger.

    • @lethal2453
      @lethal2453 3 роки тому +1

      There was an unexpected benefit to it too, because we started turning over lots more food, our suppliers stated to provide us better prices, which enabled us to make a little more on every sale, and improved the Net per sale.

    • @lethal2453
      @lethal2453 3 роки тому +2

      Also it allowed us to use much better quality food, which also helped improve the revenue as people know when they are getting good quality fresh food. We stopped skinting on price, and worked out a way to get better food and sell lots of it.

  • @excel-tutorial
    @excel-tutorial Рік тому +1

    Thanks a lot for sharing the info. Running business is never easy. A lot of things to be considered. Therefore, I thought that it would a good idea to share knowledge how to build such a tool to manage the restaurant in Excel. Just following title, it will give you a nice solution: Restaurant Management System - Food cost control - Dashboard Tutorial in Excel

  • @pers01727
    @pers01727 5 місяців тому

    Explained quite clearly and concisely. Great video, thumbs-up 😊 Subscribed.

  • @mulatiechekol4513
    @mulatiechekol4513 Рік тому +1

    Wilson! how are you? this video is very important for beginners! If it possible, for the future practical approach can give detail lesson, you can show us from local restaurant who can cooperate willingly!

  • @carole-anned.1423
    @carole-anned.1423 4 роки тому +6

    Truth be told, your videos are a godsend! Thank you 👌🏾

  • @VentMonsoon
    @VentMonsoon 4 роки тому +4

    Very informative. I appreciate that. But I have a question. Do you look for a building first or do you get the license and permits first

  • @Longevityosf
    @Longevityosf 3 роки тому +1

    Awesome video great value keep up Wilson! (Didnt like the music!!)

    • @WilsonKLee
      @WilsonKLee  3 роки тому

      Sorry about the music! I've taken it out in all my newer videos :)

  • @zxed183
    @zxed183 3 роки тому +1

    man im about to start my coffee shop and with these videos i feel like im getting top tier advice thanks a lot

  • @cateringcoachal
    @cateringcoachal 3 роки тому +14

    I love how you explained the Cost of Goods Sold (COGS) with a clear breakdown and all the information without feeling overwhelmed.
    The 3 advantages of calculating COGS include the ff:
    1. Strategize and engineer new menu
    2. Run proper promos
    3. Make more profits
    Thank you for this excellent video, Wilson. 🙌

  • @GoGetterEddie
    @GoGetterEddie 3 роки тому +1

    This is an amazing content video. Music is distracting but I just watch & take notes. Super helpful as I’m starting one myself. Thanx for the info!!,

    • @WilsonKLee
      @WilsonKLee  3 роки тому

      Thanks for tuning in Eddie!

  • @johnhughes4967
    @johnhughes4967 2 роки тому +1

    Thanks for sharing. It was somewhat challenging to focus on what you were saying. Perhaps the music could be turned down a little bit more.

  • @LizJones-d6b
    @LizJones-d6b Рік тому

    Wilson thank you for your videos, they are really helpful and informative. THANK YOU!

  • @dramarcellasarti
    @dramarcellasarti 3 роки тому +2

    Thank you. That's exactly what I've been needing. Very helpful

  • @zarrarali3910
    @zarrarali3910 Рік тому

    very helpfull boss..!!
    thank you
    however in my opinion if the background music could be at a much lower volume, would make it easy for me to focus
    thanks again

  • @oath-of-the-king
    @oath-of-the-king 2 роки тому +1

    This is amazing. Extremely valuable content. Thank you sooo much for putting this out there.

  • @danw8916
    @danw8916 3 роки тому +1

    Excellent, helpful video Wilson’s. Thank you.

  • @earldechsakda5766
    @earldechsakda5766 4 роки тому +3

    Great video. I was wondering if you could share how you create food cost on spreadsheet.

  • @gnybishz6330
    @gnybishz6330 2 роки тому

    i never in my life thought i would look this up but here i am and thank u so much

  • @nishakathrotiya9825
    @nishakathrotiya9825 2 роки тому

    Nice videos i really wanted to start my own food business nd luckily I found out you. on top of that you are really good and kind hearted personality..

  • @kizelabaker1929
    @kizelabaker1929 Рік тому

    Thanks for this information. How do I calculate the cost of each ingredient that make up menu items?

  • @derek9441
    @derek9441 2 роки тому

    Love the advice. Trying to start a small Cafe. Thanks for it. I subbed

  • @tauratonge8984
    @tauratonge8984 Рік тому

    Thank you for this video! this has helped me so much

  • @marrki1000
    @marrki1000 Рік тому

    Thank you Wilson! Helped a lot.

  • @yuriliu8472
    @yuriliu8472 4 роки тому +2

    Thanks a lot for all the advices from a chef that want to open his own business. Of course many things I knew alre because of the experience but heard from you is more like a statistic I like it

    • @WilsonKLee
      @WilsonKLee  4 роки тому +1

      So nice of you, my pleasure!

    • @bzgidey7356
      @bzgidey7356 4 роки тому

      It seems we have a number of things in common. I am very interested to connect with you and get to know you and your business further and how we could work together to help each other out. I'm a Business Consultant that helps business owners increase their credit and offer alternative lending loans. If you are open to that please accept my request.
      Email me at CEO@BZCapitalConsulting.com
      Best, Bz

    • @rebeccamartin9777
      @rebeccamartin9777 3 місяці тому

      I'm interested in learning more about your journey and was wondering if you have any advice? I'm looking into starting a food truck in texas soon.

  • @sugathchanakawijerathna9629

    Very useful. Love from Sri Lanka ❤

  • @tonnynganda.h7449
    @tonnynganda.h7449 4 роки тому +2

    Hello Wilson, dude I love your content. Your well versed and beautifully composed.
    Good luck my man.
    Greets from Lusaka Zambia.

  • @darrenng9828
    @darrenng9828 2 роки тому

    good video, thanks. maybe lower the volume of the background music.

  • @robertglasburry1460
    @robertglasburry1460 3 роки тому +1

    Amazing videos i learn a lot with you

  • @invernessmobile5020
    @invernessmobile5020 2 роки тому

    Thank you for very useful video. Backround music very loud. :( ..

  • @johnwinnerdz1
    @johnwinnerdz1 2 роки тому +3

    Business planning involves sitting down and designing the menu and market you want to serve. And how the location kitchen, and decor meets those needs .This could take 7 hours or 40 hours depending on restaurnant experience . Business managers and owner and planner need to have analysis meeting , luncheon.

  • @tukzaro1959
    @tukzaro1959 2 роки тому

    Thank you very much. You're a very good teacher!

  • @TheEarlyellow
    @TheEarlyellow 5 років тому +39

    Thanks Wilson for sharing. One feedback is I find the music kind of overpowering your voice. Maybe my hearing ain't that good :( just thought you might like to know. Thanks once again

    • @WilsonKLee
      @WilsonKLee  5 років тому +2

      thanks for the feedback! Will try to lower it for the next ones!

    • @tash211186
      @tash211186 5 років тому +4

      agree!

    • @iamachine92
      @iamachine92 3 роки тому

      @@WilsonKLee mind to attach the link?, it's so hard to navigate since you have tons of videos

  • @seekandfind5858
    @seekandfind5858 4 роки тому +1

    You are awesome Wilson, i love this video. Keep it up! Very helpful

  • @lieybethl1992
    @lieybethl1992 4 роки тому +4

    Thanks Wilson for sharing this, especially point out the ideal percentage of COGS and food cost. (This is the first time I'm thankful to took Accounting as my major and am not overwhelmed with your explanation).

  • @antoniodossantos5960
    @antoniodossantos5960 3 роки тому

    Very nice video 🌎 Greetings from Colombia. The Venezuelan Immigrant writer, ecologist, entrepreneur🇻🇪

  • @kanvalnaik511
    @kanvalnaik511 2 роки тому

    Thank you very much for making this informative video love from India

  • @annasantiago7787
    @annasantiago7787 2 роки тому

    Great video. Easy to understand.

  • @foodbizztalk919
    @foodbizztalk919 4 роки тому +1

    Awesome video. Helping thousands. Keep up the good work Wilson.

  • @patriciapierre5542
    @patriciapierre5542 2 роки тому

    hello Wilson this video was great I'm starting my food trailer business in a month or so looking forward to maybe purchasing the online course

  • @defectionis6117
    @defectionis6117 3 роки тому +5

    Hello Wilson, new subscriber here. Can you make a video on food purchasing? Sharing ideas, tricks or knowledge on how to do it smart. Maybe using examples focusing on proteins and produce orders as a chef. Thanks Wilson! Keep up the great work

  • @khairulanwar3398
    @khairulanwar3398 3 роки тому

    Thank you so much. Very informative. Easy to understand

  • @alirizvi3009
    @alirizvi3009 5 років тому +6

    Hey there,
    I haven't watched this video yet. I just wanted to say that you & your videos are fantastic. Excellent advice, to the point, professional delivery, kind nature, etc. I wish you the best on this channel, keep going!
    Best Regards
    p.s. you can find a lot of gems or "gold nuggets" around startups

    • @WilsonKLee
      @WilsonKLee  5 років тому

      Appreciate the kind words!

  • @laurengrobbelaar6026
    @laurengrobbelaar6026 2 роки тому

    What a great video! Thank you so so much

  • @marajade2414
    @marajade2414 2 роки тому +1

    hi wilson, i have a question, if the restaurant owners, are giving away cookies and cakes to their customers,wich contain alcohol,and tons of ingredients..how as a pastry chef can i help them keep their cogs under control, the servers dont help either...i know ill just get another job..lol..thank you for the tutorial...

  • @estonian44
    @estonian44 2 роки тому

    8:44 dont u need to add some electric and water or smth bill into it or maybe i missed it

  • @anielloruocco5106
    @anielloruocco5106 4 роки тому +1

    Hallo Wilson, thank to you , I am getting better every day. Do you know a free software to calculate food cost and inventory cost for a restaurant?

    • @WilsonKLee
      @WilsonKLee  4 роки тому +1

      Excel is what I use. There are probably fancy software out there.

  • @emzescalada3211
    @emzescalada3211 5 років тому +4

    Thank you for this info....it help me a lot

    • @WilsonKLee
      @WilsonKLee  5 років тому

      Good to hear! Let me know if you have any otherr topics you'd like me to cover!

  • @bilalmahmood2944
    @bilalmahmood2944 10 місяців тому

    You missed the utilities cost in calculating the menu cost, if I am not mistaken. Indeed loved all aspects, thanks much!

  • @kayedomingo8001
    @kayedomingo8001 Рік тому

    Great video!

  • @gebronthomasson6960
    @gebronthomasson6960 3 роки тому

    Very good stuff..eye opening

  • @ambivalentdisaster673
    @ambivalentdisaster673 4 роки тому +2

    Your info is excellent and you have good tips. The style of video is just enough to keep your attention without overkill. However, I’d recommend losing the music entirely or just use it when you segue. You don’t need it in the background when you are talking numbers. Maybe for something broader it would be fine. That said, I really like your videos and they get my ideas going as well as remind me of what I need to think about still. Thanks for your work!

  • @fedensiferum
    @fedensiferum Рік тому

    Very good video, but the music is too loud and distracting.
    However, the topic is very well explained

  • @peachfuzz3214
    @peachfuzz3214 4 роки тому +8

    Loved this video and the rest in the series. you do a very good job of breaking everything down and giving good examples. Thanks Wilson!

  • @SpasticStudios6
    @SpasticStudios6 4 роки тому +3

    Thanks wilson, Wanted to know if you have a recomendationfor a food costing template or app to use for my restaurant. Thank you

    • @WilsonKLee
      @WilsonKLee  4 роки тому

      i use quickbooks and my accountant does it. however, a simple excel sheet would do too.

  • @JudiChristopher
    @JudiChristopher 2 роки тому

    I love this video... EXCELLENT...
    HINT: Your background noise/music was a little too loud making it hard to hear and understand you at times...
    We Don't need music (even though it is beautiful)
    We just want to HEAR you Talk...
    Thank you for sharing this video.

  • @Jewel-jewjew
    @Jewel-jewjew 4 місяці тому

    Your video didnt need music . Great job

  • @kynthea4101
    @kynthea4101 2 роки тому

    You offer great value...but the music begins to tire the viewer...its great to start out with a bang...but then bring the volume way down...it could even go in and out of listening range to offer more variety. I found that I was attentive to what you were saying...but I got tired and had to pause it for a break. Thank you for your contribution to my education and future success :)

  • @eltrunk5401
    @eltrunk5401 Рік тому +3

    You have good content but the music is louder than your voice.

  • @arunkumarjangid9287
    @arunkumarjangid9287 Рік тому

    13:29 it’s a request to reduce the music volume because I want to hear you

  • @tomatobrush3283
    @tomatobrush3283 Рік тому

    How do you work out the minimum mark up on products, when including all the costs like rent and labour and energy etc. Say you have worked out the food costs already to sell 100 of a specific product. I don't mean what price of a product should be, as that could be based on market as well but the minimum mark up before you make a loss while selling. It is difficult to know because you don't know how many products you might sell in a day or week or month.

  • @daverobau9656
    @daverobau9656 3 роки тому +1

    Good content. Thank you for sharing. Music is way too loud.

    • @WilsonKLee
      @WilsonKLee  3 роки тому

      Took it out in my newer vid

  • @lolamarie9791
    @lolamarie9791 3 роки тому

    Great details. But the background music is a bug

  • @dhundupasiktsang8688
    @dhundupasiktsang8688 4 роки тому

    you are the super generous man ..... thank you so much . god bless you.

  • @tahabaayoun1201
    @tahabaayoun1201 3 роки тому +1

    How do I calculate the usasge of the machines when preparing an item? And does it go under food cost?

    • @amberpendse73
      @amberpendse73 3 роки тому

      Those are depreciable items under Fixed Assets

  • @michaelteamkasandokunity1682
    @michaelteamkasandokunity1682 2 роки тому

    thank you Sir Sharing ideas food coast

  • @olgamakarova5127
    @olgamakarova5127 4 роки тому +18

    Hi, Wilson! Thanks for the great video. I have a small question though. If you are calculating the labor cost as a part of food cost, wouldn't you end up adding it twice when you are doing the overall cost calculation (food cost+labour+rent+etc.)?

    • @WilsonKLee
      @WilsonKLee  4 роки тому +3

      thanks! :) take the ones you've accounted for in food cost out from your labour cost when calculating. you can ask your accountant to prepare your books and catagorize them accordingly for your viewing.

    • @geckografix
      @geckografix Рік тому +2

      @@WilsonKLee At Intercontinental hotels every department was based on a profit/loss(de-centralised), so the food cost was the actual food cost (not including labour) any wastage needed to be accounted for in a spoilage report and was logged as a NET cost so we had a food target % to meet every month, the same with Beverage, the same with Staffing(overstaffing was considered mismanagement of human resources). I did have a kitchen excel spreadsheet that was used to Tally the kitchen expenditure and costs and it would take into account all the above and spit out your end of month Food cost % but alas it is buried on a hard drive somewhere, if I find it I will share a link.

  • @p8zero58
    @p8zero58 2 роки тому

    Brilliant video with many helpful advices👌
    aside the music, it's just too loud & distracting.

  • @masarapdito6129
    @masarapdito6129 2 роки тому

    how about overhead cost like electricity? franchise fee?

  • @karimtounsi7950
    @karimtounsi7950 4 роки тому +1

    Hi Wilson and thanks for sharing all these information
    I was wondering, before minute 12:23 you were talking about Food cost = COGS = (Ingredients costs + Direct Labour) / Food sales
    And at minute 12:23 Food cost became only Ingredients costs (inventory and purchases), without Direct labour / Food sales
    Question : Where did the labour goes at the second explanation of the food cost
    Thanks a lot

    • @jintogeorge8424
      @jintogeorge8424 3 роки тому

      u have to calculate labour cost and other expenses... Buz... Minute 12.23... He only explained the food cost... Not, cost of goods sold

    • @4smereka
      @4smereka 2 роки тому

      Food and labour should only be calculated together when creating a menu. After that, food cost has nothing to do with labour and vice versa. Hence why it is essential that your menu takes into consideration prep time, etc. Actual food cost is Beginning Inventory - Closing Inventory + Purchases/ Food sales. Then typically once you count inventory, you should have a theoretical cost to compare it to. Any differences is lost money

  • @jayofman
    @jayofman 4 роки тому

    Glad I found you when I did. Your a great educator thanks for all you have shared so far.

  • @kentyfrancois4570
    @kentyfrancois4570 2 роки тому

    Very great tips… thank you. But the music is really too loud.

  • @sayedsharifsadat8784
    @sayedsharifsadat8784 4 роки тому

    Believe me you are such genius person thanks very much Mr Wilson..

  • @Wokeafricantvs
    @Wokeafricantvs 11 місяців тому

    You gave me something to think about

  • @markchristianprado7135
    @markchristianprado7135 3 роки тому

    Amazing video Sir, learned a lot from this.

  • @junaspili
    @junaspili 2 роки тому

    I was confused about CoGS. The higher it is the lower the profit? How is that?

  • @CaffeineMark
    @CaffeineMark 2 роки тому

    Thank you sir 🙏 this was much needed.

  • @haziqhadifjunaidi3268
    @haziqhadifjunaidi3268 3 роки тому

    this guy is tooooo underrated

  • @ViralMoments2023.
    @ViralMoments2023. 2 роки тому

    Thank you for this video ❤

  • @zmfaro922
    @zmfaro922 2 роки тому

    It was interesting to see.

  • @samuelakpenyi8125
    @samuelakpenyi8125 4 роки тому

    Great work. Thanks for this.

  • @sergiodavidorias5424
    @sergiodavidorias5424 3 роки тому

    Great material! thanks! :)

  • @samkelisiwemathonsi384
    @samkelisiwemathonsi384 2 роки тому

    Thank you God bless you men

  • @CairoJoe
    @CairoJoe 4 роки тому +1

    this is great content, thankyou

    • @WilsonKLee
      @WilsonKLee  4 роки тому

      Glad it was helpful Imran!

  • @TheHonestFoodTeller
    @TheHonestFoodTeller Рік тому

    The music is too loud, but the video is excellent!

  • @samm1883
    @samm1883 4 роки тому

    Great job on explaining everything Sir

  • @ibrahimhaneef6684
    @ibrahimhaneef6684 2 роки тому

    Thank you Wil

  • @joanamarieadalid4857
    @joanamarieadalid4857 4 роки тому

    Hi we have a project in our subject that we should think of a product or services that we want and make a product plan of it , and i chose to do a video demo about my product or services but then i dont now what business should i pick and how to do a video demo of it . Do you have any suggestions please .

  • @antoniodossantos5960
    @antoniodossantos5960 3 роки тому

    Thanks Wilson 🌎

  • @tavalovezkitty
    @tavalovezkitty 2 роки тому

    Amazing thank you

  • @RabiulmHossain
    @RabiulmHossain 2 роки тому

    Thank you for your lovely video. But I am a bit irritated with background sound..😢

  • @davidfrankykurniawan8478
    @davidfrankykurniawan8478 3 роки тому +1

    Thanks for the explanation. So good! But how about the operational cost to produce the products? For example, water for the products, water for washing & cleaning, the gas for cooking / boiling, electricity to produce, to turn on the lamp, the wifi, the POS at cashier, etc. I think it's very important as well to be counted in the calculating the food cost. Hope that you / anyone can explain this. Really appreciate.

    • @aaronchowdhury2187
      @aaronchowdhury2187 3 роки тому +5

      Hi David - I'm not sure if you got an answer but I hope this helps. Food Costs should only relate to the actual food items involved in making a dish, and if takeaway, I include the packaging (Box/Plate, Napkin, Bag, Straw, Cup, Lid etc) as it a cost of every dish.
      These are "direct costs" that can be easily and accurately measured when producing a food/beverage item.
      I believe Wilson includes a Direct Labour component into some of his Food Costs but I prefer to keep this separate and track Labour separately.
      All other costs can be counted as "Expenses". Whilst they are involved in producing the food they are a general cost for running your business and also can't accurate be measured for items of food/drink.
      Blessings

    • @davidfrankykurniawan8478
      @davidfrankykurniawan8478 3 роки тому

      @@aaronchowdhury2187 thank you so much Aaron! your answer really helps. really appreciate your time & sharings.
      blessings!

    • @aaronchowdhury2187
      @aaronchowdhury2187 3 роки тому

      Glad to hear it helped @@davidfrankykurniawan8478

  • @jopetaldecoa
    @jopetaldecoa 2 роки тому

    Thank you Wilson!!!! 😁

  • @thehealinggarden7850
    @thehealinggarden7850 3 роки тому

    I understand fine with the music lol ❤️ thank you for the information

  • @emilyndembe6300
    @emilyndembe6300 3 роки тому

    You're amazing. Thanks for sharing

  • @mattmallecoccio8378
    @mattmallecoccio8378 2 роки тому +1

    The major problem is that with new restaurants people are looking for the best food for the lowest price. So, say I wanted to make a foie gras terrine, I would need to sell lower end stuff, but make it flavorful enough to eventually build up enough revenue to begin selling that terrine without breaking the restaurant

  • @teenanguyen217
    @teenanguyen217 4 роки тому +1

    Do you guys know if Food Cost Percentage accounts for GST or should I add GST on-top of my selling cost? Right now my item costs $2.74 to make and I can afford to sell if for $10 making the food costs percentage 27.42%. The GST in my country is 10% of the Sales Price. My GST Payable is $1.00 for selling it at $10, so should I assume my food cost is actually 30.47% because $1 is going to be taxed? Or Do I increase my sales price to $11?

    • @WilsonKLee
      @WilsonKLee  4 роки тому

      Answered your question in my latest Live in the Q&A section!

  • @kasulajonathan4711
    @kasulajonathan4711 2 роки тому

    Hello I need some knowledge on how to understand how to maximize Icecream
    Otherwise you are doing us soo well

  • @JudiChristopher
    @JudiChristopher 2 роки тому +5

    The loud background music is killing me...