Know Your Food Cost Percentage. Know Your Restaurant Profits.
Calculate Food Cost Percentage
The pandemic has passed, yet its impact lingers. Over the past five years, the way restaurants operate has transformed tremendously. People now prefer takeout and delivery over dining-in options, and with no surprise, it's becoming the new norm.
Currently, 60% of customers go for food delivery services weekly, with an average spend of $67 on each order. This shift pushes traditional restaurants to offer online ordering services to serve customers. So, how can we get started? In this guide, we will disclose everything about online ordering and how you can start online ordering services for free.
Online ordering is a system where customers use the Internet to order food from restaurants. It's growing because customers value convenience. They prefer browsing menus, placing orders, and paying online.
Offering online ordering opens up new sales channels and gives insights into customer preferences. It helps you stay competitive and meet the demands of today's diners. As lifestyles become busier, more customers prefer ordering online to save time. Ordering food online has outpaced dine-in and makes up 40% of restaurant sales.
And here's the kicker: customers love it. They crave the ease of getting their favorite meals to their favorite couch without the hassle.
People want convenience, and online ordering delivers just that. 87% of Americans using third-party food delivery services say it simplifies their lives. And it's not about avoiding cooking. About 63% of people find ordering easier than dining out with family.
Additionally, people value their time more than ever. They prefer clicking a few buttons over waiting in lines or dealing with traffic.
For restaurant owners, this shift is a call to action. Online ordering is essential. It meets your customers where they are: online, looking for an easy and satisfying way to dine.
You’re in the right place. OneHub Online Ordering (Online store) module helps restaurant owners build their online presence and open a new revenue channel. To set up a OneHub Online store is simple. Here’s how this will look for you:
1. Let’s get on a call. Our Customer team contacts you to get all the details and configurations for the Online store. This applies to new and existing customers.
a. We will ask for an updated menu
b. Updated pricing
c. Store settings for Online store
2. Our Engineering and Customer teams will work over the next 36 hours to set up your Online store as needed.
3. Post set up, our teams will contact you with your Online store admin login details, pre-configured and ready to take orders.
4. Now, you can manage your online store from one dashboard.
a. Edit or update store branding and operating hours.
b. Simplify menu updates and pricing edits easily.
c. Track inventory and hide unavailable items automatically from OneHub Online store dashboard.
d. Track orders at every phase, including future orders.
e. To access Settings - including delivery, taxes, promo codes set up, or edits, go to OneHub Online store > Settings
While initial setup costs of $100 may be associated with implementing an online store, the long-term benefits often outweigh the investment. Reduced labor costs, improved efficiency, and optimized resource allocation contribute to overall cost savings for restaurant owners.
Implementing an online ordering system is the first step towards modernizing your restaurant and meeting the changing expectations of your customers. This guide has walked you through creating an online store with OneHub, from getting online to managing orders like a pro.
Pro tip: From choosing the right software to promoting your new service, each step builds towards a seamless customer experience. Whether you seek to broaden your menu or explore new service models, you have ample opportunities. Always aim to make the ordering process as straightforward as possible to minimize customer drop-off—more on how to do this in our upcoming blogs.
Federal law allows including only employees who customarily and regularly receive tips. This typically excludes back-of-house staff like cooks and dishwashers. However, some states might have different regulations.
Tips are typically collected throughout the day and pooled at the end of the shift. The pool is then distributed among eligible employees based on the chosen method.
In some states with allowed tip credits, employers can take a portion of the minimum wage based on tips received by employees. This essentially allows employers to pay tipped employees a lower base wage.
Non-compliance can lead to fines and penalties from the Department of Labor, wage-and-hour lawsuits from employees, and employee morale issues.
Tip sharing is voluntary. An employee might choose to share some of their own tips with colleagues. Tip pooling is a mandatory system where all tips are collected and then distributed among eligible employees based on a predetermined method.
No, managers and supervisors cannot participate in the tip pool.
There are no standard percentages by law. However, 15-20% is a common tipping range for good service in the USA. Tip pooling eliminates the need for individual tip calculations.
Tip pooling can be beneficial for restaurants of all sizes. It can foster teamwork, ensure everyone benefits from good service, and simplify tip distribution.
Yes, tip pooling is legal under federal law (FLSA) with some key restrictions. However, some states might have additional regulations. Always check your state's Department of Labor website to ensure compliance.
Pricing is a balancing act! You need to cover your costs (including the food cost per portion) while offering a price point that feels valuable to your customers. Consider factors like competition, target audience, and the overall dining experience you create.
Food cost calculators are great for initial estimates, but consider restaurant management software for ongoing success. This software tracks inventory, automates cost calculations, and generates reports to identify cost-saving opportunities.
Absolutely! Many online food cost calculators can handle various cuisines. Look for tools that consider ingredient types, portion sizes, and even regional pricing variations.
Consider your food cost percentage your restaurant's financial fitness tracker. It's the total cost of recipe ingredients divided by your total menu sales. Ideally, calculate this regularly, like weekly or bi-weekly, to monitor profitability and adjust pricing or portions as needed.
The standard costing model is like a recipe for consistent pricing. It uses historical data and market trends to predict ingredient costs, allowing you to budget, purchase, and maintain profit margins even when prices fluctuate.
Food cost per portion is the actual cost of creating a single serving of a dish. It considers all ingredients, including spices, garnishes, and even waste! This number helps you understand your profitability and set menu prices effectively.
Sahana is a seasoned GTM leader with a passion for building startups. She excels in crafting GTM strategies for tech products, driving revenue growth.
