Know Your Food Cost Percentage. Know Your Restaurant Profits.
Calculate Food Cost Percentage
As NRF 2024 unfolded, one resounding theme echoed through the halls of the Jacob K. Javits Convention Center — the transformative power of AI in shaping the future of retail. NRF 2024 was an exhilarating experience. Let me tell you, the energy was nothing short of electrifying.
Teaming up with our partner, iMin Technologies, we ignited the retail landscape by showcasing the power of OneHubPOS solutions on their state-of-the-art devices. The electrifying buzz in the event space was contagious, setting the stage for an unforgettable retail experience.
In the bustling event space, I navigated through a mosaic of retail dimensions, exploring exhibitors in POS, Supply Chain, food service technology, AI, AR/VR, and Security. Each corner held a promise of innovation, and my journey through these realms left me with a tapestry of insights.
One highlight was Jonathan Jimenez's Tech Talk, where he delved into in-store analytics, particularly focusing on the beauty category. The emphasis on creating unforgettable shopping experiences through data-driven decisions underscored the transformative potential of AI in the retail sphere.
A fan moment awaited as I delved into a keynote by none other than FedEx CEO Raj Subramaniam. The discussion on supply chain excellence and unveiling the "fdx" initiative showcased FedEx's commitment to making the supply chain smarter using AI and machine learning.
A very proud moment for us was witnessing the surge of interest in our latest cash management solution. Our customer Loomis launched a robust cash management solution for their smart safes (powered by OneHubPOS), attracting many retailers and partners.
This is a great time to discuss cash management with an increase in cash thefts, and retailers will benefit from implementing a solution that can safely move your cash from registers to a safe while being accountable throughout the process. Know more about our cash management solution. Let’s talk.
Post-receiving the NRF's 2024 Visionary Award, Edward Stack, the Ex-CEO and Executive Chairman of DICK’s Sporting Goods, shared insights resonating with continuous innovation, the value of learning from mistakes, and the dynamic nature of the retail industry.
A dynamic panel featuring Jon Hsu, CEO of Copay, Toby Awalt, VP of Marketing of Mashgin, and Thea Myhrvold, Founder & CEO of GetBee delved into the future of checkout experiences with AI. The consensus on AI's transformative potential, the human factor, and the imperative to educate frontline staff about AI adoption underscored the evolving retail landscape.
Clearly, NRF unveiled the omnipresence of AI but also brought forth a crucial realization — a limited focus on sustainability. As holograms and robotics took the spotlight, discussions around transparent reporting on ESG and the role of AI in achieving sustainability goals emerged as significant points of contemplation.
As I bid adieu to NRF 2024, the resonance of AI's dominance, the retail innovation tapestry, and the imperative of sustainability echo in my mind. The retail landscape stands on the brink of unparalleled transformation, driven by the fusion of technology and consumer-centric strategies.
Here's to the thrilling journey that lies ahead in retail innovation!
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.
Roopak Chadha, Director of Business Development with expertise in Business Growth & Strategy, Customer Success, and Product Management. Excels in driving business growth through strategic planning, customer-centric approaches, and effective operational leadership.
