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Starting and Running a Restaurant by Elizabeth Keyser, Jody Pennette

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CHAPTER17

Understanding Costs

In This Chapter

  • How to determine the cost and profit of each dish
  • Why you need to do a weekly food and liquor inventory
  • Why spreadsheets are a vital tool in controlling costs
  • How to run the numbers to make sure your costs are on budget
  • How much should you pay your staff?

Success in the restaurant business depends on managing food and beverage costs. To keep their blended costs within 25 percent of sales, you need to take several steps before and after your restaurant opens.

In this chapter, we’ll show you how to run yield tests to cost out each dish on the menu. You’ll learn about building up data in spreadsheets ...

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