food cost vs cogs

[za4life]

just curious what the forum thinks about the 30% rule on food cost. is that just for food or an all inclusive cogs(paper,food,bev,etc).

 

[indie_pizza]

30% should probably include everything. If you’re looking to make a profit anyway. Our store did 55% the year before we bought it and it was hemorrhaging money.

 

[Pizza_of_the_Month]

I try to get between 25% and 28% cogs. I run a very profitable pizza shop that I managed for 15 years before I bought it from my family. My dad never paid attention to that kinda stuff but now he wishes he had.
I only change my menu once a year so I try to keep cogs % pretty low when I do my menu.

Some shops could get alot of money tied up in packaging and condiments. For instance, we go through 2500 pizza boxes a week for our take out business alone so I think it is important to factor that in.

 

[Integraoligist]

there was a long thread about this a while back… i think the concenses was that we should stick around 28% food cost and not factor in paper, boxes and what-not. so thats what we’ve been doing for the past couple years.

if the general rule of thumbs have changed, i’m not sure

 

[bodegahwy]

We have been able to run as low as 28.5% annual cost (food, paper, cleaning supplies, condiments, packaging) If we use it up, we count it in this figure. We have also run as high as 32%. Long term our number is between 29% and 30%. As far as I am concerned, boxes are as important as sauce or cheese, but at least my crew can not mess up the portions on them!

This year we are running more coupons than we have in the past so I expect that the cost will creep up to 31%, but as business picks up we will tighten things a bit on the offers and get back under 30%.

Month to month our number varies far more. In really big months, we can get down to 26%, slower months we hit 34%.

 

[Kris]

We keep ours at around 33%. Don’t forget you can run 25-33% all day long but if your other percents are out of whack it is useless. You have 100% to use so if your other costs are 70% plus and you run 31% all day long it doesn’t mean squat.

Assign every percent a name and make sure they add up to 100! :lol:

 

[Piper]

za4life:

just curious what the forum thinks about the 30% rule on food cost. is that just for food or an all inclusive cogs(paper,food,bev,etc).

Our target Cost Of Goods Sold percentage is 26%, but we’re in a high rent area where we have to make up for increased property costs with higher prices. So it’s going to depend a bit on your particular situation.

That number includes all Cost of Good Sold. If the cost is directly related to sale, it’s in that number.

We of course track food, supplies, beverages and chemicals separate for analyzing purposes - but they are all included in the total COGS number.

 

[wa_dave]

bodegahwy:

We have been able to run as low as 28.5% annual cost (food, paper, cleaning supplies, condiments, packaging) If we use it up, we count it in this figure. We have also run as high as 32%. Long term our number is between 29% and 30%. As far as I am concerned, boxes are as important as sauce or cheese, but at least my crew can not mess up the portions on them!

This year we are running more coupons than we have in the past so I expect that the cost will creep up to 31%, but as business picks up we will tighten things a bit on the offers and get back under 30%.

Month to month our number varies far more. In really big months, we can get down to 26%, slower months we hit 34%.

Steve, do you not count your coupons as a sale?
We put the value of the coupon, free pizza or whatever in the till as a sale (non cash of course). We pay the GST (Goods and Services Tax - 10%) on the sale, but claim the whole value as a tax deduction. This way you recover the cost as a marketing / customer promotion cost and it keeps your food costs at the same level as if you were charging for it.
Just a side note from the post topic - Sorry for digressing from the subject Moderators

Dave