How do you work out gross profit for food coasting?

Question

How do you work out gross profit for food coasting?

Answer 1

Costing?

Your beginning inventory at any period.  Week or month.  

(All food products, drinks)

All above received for the period.

Your ending inventory, above products at end of the period.

Add Beg. Inv., plus Recievings, Minus End Inv. = Cost of Sales.

This is all the food products that are gone/sold for the period.

Subtract Cost of Food Sales from Gross Sales = Gross Profit.

This is gross profit on food products only.

Supplies can be done the same way for cost of supplies/expense.

Paper napkins, paper cups, plastic knives/forks/spoons, carry out boxes, etc.

If you include these in "Cost of Sales", deduct from Gross Sales, also.

If not, they become an expense to be deducted from Gross Profit.

The net is the same.

Answer 2

It depends exactly what your question is trying to elicit. Most restaurants will have a mark up on the cost of food of around 300%.

If you have already been trading for a while and have some results to work from then, using 'Ed's' method,  divide gross profit by cost of sales and express as a %.

Example. if food sales = £400 and cost of food sales =£100, then gross profit = £300. Mark up = 300/100 x 100% = 300%