10 formulas for food cost, purchasing, and waste
- Usable cost = purchase cost / actual yield.
- Yield % = usable weight / purchased weight x 100.
- Waste % = waste / total purchases x 100.
- Waste value = wasted units x unit cost.
- Purchase variance = current price - historical price.
- Supplier impact = purchase variance x monthly volume.
- Inventory coverage = stock on hand / average daily usage.
- Inventory turns = period consumption / average inventory.
- Updated recipe cost = sum of ingredients at current prices.
- Negotiation savings = old price - new price across real volume.
The fastest operators review yields and recipe costs before blaming demand. Margin leaks usually start in prep, waste, and uncontrolled buying.