Overview

"This is a profit making organization. That's the way you planned it... that's the way it is."

1. Targeted food cost:
This is the food cost goal of your operation. This ideal food cost helps you plan your profit. If your operation returns an 18% profit running a 32% food cost, then you will likely be losing money if food cost climbs near 42%. Food cost can't just be allowed to happen. It must be targeted or planned.

2. Theoretical food cost:
This is the perfect food cost. It is based on the principle of buying the correct product at the right price, receiving what is paid for, preparing, producing and serving only what the guest is entitled to receive, all the while maintaining adequate security measures.

3. Actual food cost:
This is the food cost that appears on your profit and loss statement. It is calculated by (beginning inventory + purchases) - (ending inventory). Read it and rejoice or read it and weep.

We know that food service software must be easy to use, learn, and maintain. COST is designed exclusively for food service. You'll see that our screens, reports, help system, documentation, and even our support and sales staff all show a real understanding of your business. Food service has unique challenges and business demands. We understand what it takes to keep your operation profitable and efficient, and translate it to software that will help you every working day: COST.

From fast food to fine dining to catering to institutional foodservice the understanding of the cause, effect and interaction of each of the three food cost principles will play a key role in the success or failure of your operation.

Shrinkage (or theft, to put it bluntly) is the enemy of profit. Shrinkage is the difference between theoretical, or perfect food cost and the actual, or real food cost. The difference between theoretical and actual in food service ranges from 2% to 15%.

That is 2-15% of sales in lost profits and often the difference between a profitable food service operation and one that has closed it's doors. Every food service operation has shrinkage.

COST is designed to give management timely reports on every item in inventory and subsequent tools to recover lost profits. Once implemented, COST software is like turning on your headlights at midnight… Everything is so much clearer. Control of food cost is based upon planning.

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