Food cost rate refers to the ratio of raw material cost to food business income. Food cost rate = cost volume/turnover ×111%? .

gross margin = gross margin ÷ turnover ×111%=1- cost ratio. It is the same as the general manufacturing algorithm. For example, if your sales revenue is 5 million and your cost is 3 million, then the cost rate is 311/511=61% and the gross profit rate is 1-61% = 41%.

since production, sales and service are unified in the selling price, it is difficult to clearly divide other expenses, such as staff salaries, rent, taxes, water and electricity expenses, management expenses, etc., in the selling price except the cost of raw materials (main ingredients, ingredients and seasonings) and fuel.

therefore, the traditional custom of catering industry is that the product cost is only the cost of main ingredients, ingredients, seasonings and fuel. Operating expenses are expressed in other percentages, for example, 31%, 41%, 51%, 61% of gross sales margin.

Extended information

The object of food cost calculation is divided into total cost and unit cost

(1) Total cost, which refers to the total cost of a certain kind, a certain category, a certain batch or all the finished dishes in a certain period.

(2) unit cost refers to the production cost of a single product, which is called unit product cost.

for example, if the batch of salads is 11, and the total cost of 11 salads is 35 yuan, then the cost of each salad is 3.5 yuan. The object of cost calculation of catering industry is a single catering product, so the product cost of catering industry usually refers to the cost of catering unit product.

Baidu encyclopedia-the cost of catering industry