The Math Behind Your Restaurant Profits - Part 1 - Restaurant Systems Pro

The Math Behind Your Restaurant Profits – Part 1

Posted June 8, 2010

In 1. David Scott Peters, Food Costs, Tip of the Day

By David Scott Peters

Restaurant Tip of the Week

Formulas give consistency to pricing. Many of the financial relationships necessary to develop an effective pricing structure can only be derived through mathematics. Following is one such formula.

Finding cost per ounce

To determine a liter’s cost per ounce divide the bottle’s wholesale cost by 33.8 ounces.
To calculate the cost per ounce for a 750mml bottle divide the bottle cost by 25.4 ounces.

Liter bottle cost = $12.55. Cost per ounce = 37 cents
750mml bottle cost = $12.55. Cost per ounce = 49 cents

David Scott Peters is a restaurant expert, coach, trainer and speaker, specializing in teaching independent restaurant owners how to use systems for increased sales and increased profits. He is the nationally acclaimed restaurant coach whose unique “SMART Systems” approach to boosting profits has earned him the title of, “The man who can walk into any restaurant in America and find $10,000 in undiscovered cash before he hits the back door – Guaranteed!” Visit www.TheRestaurantExpert.com for more. Learn more tips, tricks and secrets in David’s free five-part e-course, “How to Explode Your Restaurant Profits NOW!” Simply sign up to receive the e-course at TheRestaurantExpert.com.

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Fred Langley

Fred Langley is the Owner/CEO of RestaurantSystemsPro.net. He leads the company's consulting services, systems coaching, conducting seminars and overseeing the training and technical support team for the company's management software,RestaurantSystemsPro.