What Should the Consumption Rates of a Well-Managed Restaurant Be?

A well-managed restaurant should aim to keep its food costs at around 24% of its income. This means that for every $1 earned, $0.24 should be spent on food. By keeping food costs in check, the restaurant can maintain a healthy profit margin while still offering quality food to customers.

Similarly, beverage costs should be around 18% of the restaurant’s income. This includes the cost of alcohol, soft drinks, and other beverages. By maintaining this percentage, the restaurant can ensure that it is not overspending on beverages while still offering a variety of options to customers.

The cost of consumables, such as paper products and cleaning supplies, should be around 4% of the restaurant’s income. This may seem like a small percentage, but it can add up quickly, especially in a busy restaurant. By keeping consumable costs in check, the restaurant can ensure that it is not overspending on supplies and can allocate funds to other areas of the business.

Finally, rent, salaries, and other expenses should be around 23% of the restaurant’s income. This includes the cost of rent or mortgage payments, employee salaries and benefits, utilities, and other necessary expenses. By keeping these costs at a reasonable percentage, the restaurant can ensure that it is not overspending on overhead and can allocate more funds to other areas of the business, such as marketing and advertising.

Overall, a restaurant that maintains the recommended consumption rates for various expenses is on the right track to being financially successful. By keeping costs in check and allocating funds wisely, the restaurant can offer quality food and beverages to customers while still maintaining a healthy profit margin. Customers will appreciate the quality of the food and service, and the restaurant can build a loyal following that will help to ensure its continued success.