1. Boss's profit: 15%-21%. Less than 21% indicates poor management and needs to be adjusted. Less than 15% is an investment failure.

2. Personnel salary: 17%-22%. If it is higher than 22%, it needs to reduce staff and increase efficiency; if it is higher than 21%, it needs to be adjusted.

3. Material cost: 21%-25%. If it is higher than 25%, it will lose money.

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

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.

Characteristics of catering cost ratio:

1. The variable cost ratio is significant. In addition to catering products and beverages, there are some variable costs such as material consumption in operating expenses. These costs and expenses increase in direct proportion with the increase of sales volume. This feature means that the discount of catering price cannot be as large as the customer's price.

2. The controllable cost ratio is significant. Except for the uncontrollable expenses such as depreciation, major repairs and maintenance fees in operating costs, most other expenses and the cost of catering raw materials are the expenses that catering managers can control. The amount of these costs is directly related to the quality of cost control by managers, and these costs and expenses account for a large proportion of operating income.

the above content reference: Baidu encyclopedia-the cost of catering industry.