COSt control Formula

FREQUENTLY USED FORMULAS FOR MANAGING OPERATIONS
CHAPTER 1—MANAGING REVENUE AND EXPENSE
Revenue – Expenses = Profit
Revenue – Desired Profit = Ideal Expense

Part
Whole = Percent

Expense
Revenue = Expense %

Profit
Revenue = Profit %

Desired Profit Revenue = Desired Profit %

Revenue – (Food and Beverage Cost + Labor Cost + Other Expense) = Profit

Food and Beverage Cost Revenue = Food and Beverage Cost %

Labor Cost Revenue = Labor Cost %

Other Expense Revenue = Other Expense %

Total Expense Revenue = Total Expense %

Profit Revenue = Profit %

Actual Budget = % of Budget
CHAPTER 2—DETERMINING SALES FORECASTS Total Sales
Number of Guests Served = Average Sales per Guest

Sales This Year – Sales Last Year = Variance

Sales This Year – Sales Last Year Sales Last Year = Percentage Variance

Variance Sales Last Year = Percentage Variance

(Sales This Year/Sales Last Year) – 1 = Percentage Variance

Sales Last Year + (Sales Last Year × % Increase Estimate) = Revenue Forecast

Sales Last Year × (1 + % Increase Estimate) = Revenue Forecast

Guest Count Last Year + (Guest Count Last Year × % Increase Estimate)
= Guest Count Forecast

Guests Last Year × (1 + % Increase Estimate) = Guest Count Forecast

Last Year's Average Sales per Guest + Estimated Increase in Sales per Guest
= Sales per Guest Forecast

Revenue Forecast Guest Count Forecast = Average Sales per Guest Forecast

CHAPTER 3—MANAGING THE COST OF FOOD
Total Number of a Specific Menu Item Sold Total Number of All Menu Items Sold = Popularity Index

Number of Guests Expected × Item Popularity Index
= Predicted Number of that Item to be Sold

Yield Desired
Current Yield = Conversion Factor

Ingredient Weight
Total Recipe Weight = % of