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Menu Mix 

We almost cannot speak about anything when it comes to F&B  without going back to Food Cost.

 

So, remember how we said Food is a sole revenue generator for the department, hence food cost is a key profitability factor?  That is right!

Menu is a key driver in this process!

Menu must produce a certain standard food cost percentage!

 

To meet Food Cost goals, it is not individual items that must meet Food Cost goal. A menu will include a variety of items at higher and lower price points, with higher or lower contribution margins with some items that are more popular than others. Menu as a whole must meet desired Food Cost.

 

For this purpose, we will be using a Sales Mix Report.

 

Sales Mix is detailed analyses that shows the quantities of each item sold, selling price and portion cost. Sales Mix provides a good look at average profit generated by each menu item. Sales Mix is used to determine potential food cost percentage.

All the information necessary to analyze your Sales Mix you can typically pull from your POS system.

 

Let’s review example below.

The current menu has a food cost percentage of 25%. Assuming our goal is 24%  we need to take action.

 

There are many things we can do to lower our food cost percentage, but for this exercise, we will review selling price and food cost relation scenario.

Now when I know Hamburger and French Fries are my popular items I am going to increase selling price by .10 for Hamburger and .20 for Fries.

Above example demonstrates how price can impact food cost.

 

Keep in mind; Sales Mix determines composite food cost percentage. It doesn’t take into consideration waste, errors, theft, comps, walkouts etc. Your actual FC will be higher, due to other factors not taken into consideration. However composite food cost allows you to set the selling price and make accurate price changes.

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