Chapter 4
Restaurant Operations
Very Important Definitions
Total Sales -- Total dollars received from food and beverages (All the guest checks added together with food and alcoholic beverages separated out)Cost of Sales -- What it cost us to purchase all the food and alcohol that we served
Covers -- Refers to the number of guests
Food cost percentage -- Cost of food divided by total food sales -- this number is rounded to the tenth of a percent. For example, a food cost percentage of 33.67 would be rounded to 33.7% not 34%. [Audio Version]
Beverage cost percentage -- Cost of beverages divided by total beverage sales -- this number is also rounded to the tenth of a percent. [Audio Version]
Check Average -- Average dollar amount of a check (Total sales divided by total number of checks). [Audio Version]
Average sale per guest -- Divide total sales by the number of guests. [Audio Version]
Average number of guests per check -- total number of covers divided by the number of guest checks. This number may not be a whole number -- it can be 3.2 as an example. This means that on the average, there were 3.2 people for every guest check issued. [Audio Version]
Statement of Income and Sales
SALES
Food $ 962,400
Beverage 237,600
Total Sales $1,200,000
COST OF SALES
Food $348,400
Beverage 66,100
Total cost of sales $414,500
# of Covers: 139,211
# of Guest Checks: 54,168
Calculate
Food Cost Percentage: Cost of food divided by total food sales = $348,400 ÷ $962,400 = .362 or 36.2%
Beverage Cost Percentage: Cost of beverages divided by total beverage sales = $66,100 ÷ 237,600 = .278 or 27.8% Average sale per guest: Total sales ÷ number of guests = $1,200,00 ÷ 139,211 = $8.62
Average check: Total sales divided by total number of checks = $1,200,00 ÷ 54,168 = $22.16
Average number of guests per check: Total covers ÷ Number of guest checks = 139,211 ÷ 54,168 = 2.57 = 2.6
Statement of Income and Sales
SALES
Food $ 1,350,268
Beverage 452,795
Total Sales $1,803,063
COST OF SALES
Food $459,092
Beverage 104,143
Total cost of sales $563,235
# of Covers: 139,211
# of Checks: 63,821
Calculate
Average sale per guest
Average check
Average number of guests per check
Food Cost Percentage
Beverage Cost Percentage
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You must know the formulas and how to do these 5 calculations. They will definitely be on the exam.
All contents copyright (c) 1999 - 2006
Richard F. Patterson