Quoting Dale Shipp to Michael Loo <=-

the food cost is not a major part of the overhead for the
restaurant.

I've seen the books of a number of places. Food expense generally
tends to run 28% to 32% of of total revenue. Places that do things
like make their own soup stock and bake their own bread will have
higher labour costs but lower food costs than places that purchase
prepared and semi prepared foods.

(Technically food cost is actually a variable operational expense and
not overhead. Overhead is composed of general fixed expenses such as
rent.)





Cheers

Jim


... Never assume anything (unless it's a 3% mortgage).

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