How to Know What Your Food Cost Should Be

In this course we'll show you how to establish your realistic target food cost – what we call your "Ideal Food Cost". Ideal food cost (often called theoretical cost) is the cost expected for a given sales mix over a period of time, assuming proper portioning and normal waste and yields.

How to Know What Your Food Cost Should Be

About This Course

Category:

Operations

Recommended For:

Owners, General Managers, Kitchen Managers, Bookkeepers

Learning Time:

58 minutes

What You Will Learn

If you're like many operators, you may feel like you've already cut costs to the bone. You've shopped for the best deals, raised your menu prices and cut your portions; still, you're left scratching your head as to why your food cost is still high.

In this course we'll show you how to establish your realistic target food cost – what we call your "Ideal Food Cost". Ideal food cost (often called theoretical cost) is the cost expected for a given sales mix over a period of time, assuming proper portioning and normal waste and yields.

The ideal food cost for your restaurant is the REAL food cost percentage your team SHOULD be hitting.

  • Learn the reasons many operators can't hit their ideal cost
  • Why ideal cost is unique to each restaurant and no two restaurants are the same
  • How to use the item cost feature in your POS system to track ideal cost daily
  • Step by step instructions for setting up an ideal food cost system
  • How to use the free download resources on RestaurantOwner.com to reduce your food cost

Instructor: Joe Erickson


Joe Erickson

Joe brings his extensive experience in restaurant management to the forefront. With a background that spans Luther's Catering, Sunset Dinner Cruises, Bobby Mac's, Nicole's Cafe San Felipe, and Truluck's Steak and Stone Crab, he's consistently driven innovation. Joe's primary focus lies in creating streamlined systems and processes that enhance restaurant efficiency, elevate product utilization, and, most importantly, ensure a consistent and exceptional guest experience.

Section 1
Introduction
  • 1.
    Overview
    3:46
Section 2
Defining Ideal Food Cost
  • 2.
    Why Industry Averages Should Not Be Your Food Cost Target
    4:25
  • 3.
    Your Ideal Food Cost Target
    5:10
  • 4.
    How To Calculate Ideal Cost
    5:06
  • 5.
    What is Ideal Cost Quiz
    1:00
Section 3
Setting up an Ideal Food Cost System
  • 6.
    Menu Cost First
    3:37
  • 7.
    POS Settings
    3:12
  • 8.
    Using the Ideal Cost Worksheet
    3:45
  • 9.
    Setting Up Ideal Cost Quiz
    2:00
Section 4
Tracking Ideal vs. Actual
  • 10.
    Entering Actual Food Cost Comparisons
    3:36
  • 11.
    Variances Between Actual and Ideal
    5:31
  • 12.
    Tracking Ideal Cost By Category
    8:44
  • 13.
    Maintaining Current Cost
    2:15
  • 14.
    Ideal Cost vs. Actual Cost Comparison Quiz
    3:00
Section 5
Summary
  • 15.
    Review
    3:25

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