Food costs for a bar or pub typically include the cost of ingredients plus the labor used to prepare items. Food costs are usually calculated as a percentage of gross food sales and should be closely monitored to ensure that profits remain high.
The formula for calculating food costs is: (food cost/gross food sales) x 100 = % food cost.
The food options you include on the menu should consist of the traditional meals that customers expect from a bar or pub including chicken wings, burgers, chicken sandwiches and pizza. But adding your own unique angle or flavors to the traditional mix can help you stand apart from the many other bars in town. But be sure to factor in your food costs as you calculate your price and then compare to your competition to be sure you’re in line with customers’ expectations.
All in all, food costs are an important part of a bar or pub’s bottom line. By carefully monitoring and managing their food costs, bars and pubs can remain competitive in the market and keep profits high. Through menu engineering, portion control, ingredient costs and labor costs, businesses can successfully control their food costs and remain profitable.