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What is a food cost and how to see it in Poster
What is a food cost and how to see it in Poster

Figure out the food cost and which tabs of management console show it

Max avatar
Written by Max
Updated over a week ago

Let's see how food cost is displayed and calculated in Poster. Cost, Markup, and Food cost are closely related and affect the viability of your business.

🍭 What is Food Cost

Food cost — is a cost percentage over the sell price. Formula:

This helps to form a viable dish price. For example, Risotto costs $50 while its cost is $12. To calculate the food cost:

(12 / 50) × 100% = 24%

Therefore, 24% of the sell price will go to purchase products to prepare a portion of risotto. The less food cost is the more the business earns. Certain food cost values are defined to keep the business viable. Values depend on if it's a bar, restaurant or cafe.

Further, we define what food cost depends on and how to check it in Poster.

🍡 Markup and Cost

Markup and Cost are closely related and depend on the cost and sell revenue of the dish.

  • Markup — is a sell price percentage over the cost:
    ​(Sell price – Cost) / Cost × 100%
    ​

  • The food cost of ingredients and products is based on supplies and calculated by the weighted average method.

💡 Preparation and dish cost consists of the total cost of its ingredients.

😋 How to check Food Cost in Poster

Browse food cost values in the Reports tabs of the management console.

Browse order food cost on a selected period:

  1. Go to Reports → Receipts.

  2. Set up a report date at the top right.

  3. Down in Details ▼ see gross, net revenue, taxes, food cost, and gross profit.

Browse the food cost of each dish separately:

  1. Go to Reports → Products.

  2. Set up a report date at the top right.

  3. Browse products, sold quantity, gross revenue, discount, profit, and food cost.

  4. In Columns at the top right enable Food cost, or other values.

  5. To sort the report by specific data, click the column name.

To calculate food cost correctly:

  • Add supplies to your stock timely. If the dish ingredients are missing in stock, the dish food cost will be incorrect.

  • If you have multiple locations, make sure ingredients are deducted from the correct storage. Set up storages for each location.

  • Make sure to complete dish recipes with ingredients. Missing ingredients cause inaccurate food cost.

To have correct food cost at all times, monitor ingredients and supply stock timely.

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