Question on Food Cost Basics

Joe,

My name is Steve and I am starting a new job as a Sous Chef but haven't learned anything about food costs or labor costs and I am afraid to not be able to be a team player on this important situation, that I am final realizing that its part of my job. Can you please teach me how to do all of this or point me in the right direction. I have read your basics on food cost but still I am having trouble understanding it all. Thank you for your time.

Sincerely
Steve

The goal of food purchasing is to place the food in inventory as close to actual production as possible. People who are pros know delivery dates and times, par stock levels, minimum drops, shelf life, and most important, the forecast for the order period.

The food cost formula is really a report card on how well you forecasted for the orders. Most food service companies have several backup suppliers they can use if they experience sales far beyond the forecast. Typically, these last minute purchases are made at cash and carry stores with much higher prices.

The heart of the food cost formula is purchases. You simply divide net purchases by sales. If you forecast your sales carefully, you will make better purchase decisions.

As a learning tool, you may want to take a look at 4 or 5 weeks of invoices to see past purchases. You can discuss spoilage and waste with the chef. Ordering is most important before busy periods. You need to have adequate supply without creating excessive waste. If you keep score, you will rapidly improve.