First, consider your total sales amount as 100 percent. Next, subtract the percentages of your other business expenses, including labor, from that 100 percent. This leaves a percentage that must be divided between two areas: profit and food cost. Subtract the desired profit percentage from this number, and the remaining percentage will be the percentage you can spend on food. What is the end result?

Question

Quizplus · Accepted Answer

The end result of this calculation is the targeted ideal cost. This is the percentage of the total sales that can be allocated towards the cost of food while still achieving the desired profit percentage.

First, Consider Your Total Sales Amount as 100 Percent