How to calculate food cost percentage? Why it is important?

To calculate food cost percentage, divide the total cost of ingredients used to prepare menu items by the total revenue generated from food sales, and then multiply by 100 to express the result as a percentage.For example, the first step to analyze your menu is to calculate your food cost percentage, which is the ratio of your food expenses to your food sales. This will help you measure how efficiently you are using your resources and how much profit you are making from each dish. To calculate […]

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