2Chapter 2 of 5

Food cost, purchasing, and waste

50 Essential Restaurant Formulas — by PlatePlatform


10 formulas for food cost, purchasing, and waste

  1. Usable cost = purchase cost / actual yield.
  2. Yield % = usable weight / purchased weight x 100.
  3. Waste % = waste / total purchases x 100.
  4. Waste value = wasted units x unit cost.
  5. Purchase variance = current price - historical price.
  6. Supplier impact = purchase variance x monthly volume.
  7. Inventory coverage = stock on hand / average daily usage.
  8. Inventory turns = period consumption / average inventory.
  9. Updated recipe cost = sum of ingredients at current prices.
  10. 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.