About This Chapter
Food & Beverage Costs & Purchasing - Chapter Summary
As you work through this food service industry chapter, our instructors will show you how restaurants purchase and receive the foods and beverages they sell. You'll examine concepts such as food cost percentage and practice calculating food costs via the included self-assessment quizzes. You can use the course Dashboard to quickly jump to specific topics and reach out to our instructors for extra help if you need it. This chapter is entirely self-paced and accessible on any device that has an Internet connection.
After completing this chapter, you should be able to:
- Define applicable terms related to standard costs for food and beverages
- Understand what food cost percentage means
- Calculate a recipe's food cost, as well as the Cost of Goods Sold (COGS)
- Differentiate between expense and COGS
- Outline a restaurant's purchasing and receiving process for food and beverages
- Break down the formula restaurants use to purchase beverages and food
1. Standard Food & Beverage Costs: Types & Importance
This lesson covers the basics of restaurant cost control and explains how to use food and beverage cost data to make better business decisions. Concepts covered include food cost, beverage cost, prime cost, and Cost of Goods Sold.
2. Food Cost Percentage: Definition & Calculation
For a restaurant owner, food cost percentage represents one of the fastest ways to make sure an establishment is pricing its goods properly, as well as making enough money with respect to one of its biggest expenses.
3. How to Calculate Food Cost for a Recipe
After this lesson, you'll know how to calculate the cost of a dish at a restaurant, taking into account the cost of ingredients, overhead, cooking time and other factors, so you will know how much you should charge your customers for it.
4. Cost of Goods Sold (COGS): Calculation & Example
After reading this lesson, you'll be able to calculate the cost of goods sold for any business. You'll learn the formula to use as well as how this number benefits you tax-wise.
5. Cost of Goods Sold (COGS) vs. Expense
Read this lesson to learn why the cost of goods sold and expenses are listed on separate lines on financial business documents. You'll also learn that there is a tax advantage to doing things this way.
6. Restaurant Food Purchasing Process
You can have a really successful restaurant if you learn the ins and outs of food purchasing. When you purchase the right food at the right price, you'll be able to keep a profitable restaurant.
7. Food & Beverage Purchases: Formula & Considerations
This lesson introduces the basic formula used to determine food and beverage purchase quantities in food operations. Other considerations such as delivery costs, storage space, and product shelf life are discussed.
8. Restaurant Food Receiving Process
In this lesson we will look at the critical steps in the restaurant food receiving process that ensure compliance with food safety standards, maintain food quality standards, and confirm the business is properly billed for its order.
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Other chapters within the Hospitality 309: Food & Beverage Service & Operations course
- Intro to Food & Beverage Operations
- Feasibility Planning for the Restaurant Industry
- Marketing Fundamentals for Restaurants
- Menu Planning Basics
- Food & Beverage Pricing Methods
- Food & Beverage Storage
- Inventory Control for Food & Beverage Services
- Restaurant Food Production
- Food Preparation Basics
- Food Preparation Safety
- Types of Restaurant Service
- Restaurant Service Overview
- Serving Alcoholic Beverages
- Restaurant Design & Equipment Selection
- Financial Management for Food Service
- Food & Beverage Industry Trends
- Required Assignments for Hospitality 309