How to Streamline Weekly Inventory Counts

Most independent restaurants calculate their food cost only once a month. Yet, virtually all the major chain restaurants calculate their food cost each week. According to industry averages, chain restaurants (before corporate expenses) are two to three times as profitable as independent restaurants.

While weekly food costing isn't the entire the reason, it's part of it.

In order to accurately calculate your cost weekly, you'll need to take inventory weekly as well. The only method for computing accurate cost of sales is to take physical inventories and then calculate the value of inventory on hand. Many operators erroneously believe that what they spend on food and beverage purchases is their cost of sales. While this may be true in the long run, for specific-period analysis it is inaccurate.