Determining Monthly Food Costs

Appears in
The Fundamental Techniques of Classic Cuisine

By French Culinary Institute

Published 2021

  • About
Food cost is the defined expense to an establishment when food is consumed, for any reason, in the course of doing business. Food cost includes the cost of food sold, given away, stolen, or wasted. A basic formula to determine this is:
Formula: Cost of Food Consumed Example
Opening inventory    $ 3,000.00
Plus purchases for the month + $ 8,000.00
Equals total available = $11,000.00
Minus closing inventory – $ 2,000.00
Equals cost of food consumed = $ 9,000.00