GGB Theoretical food cost
What food cost should be, from costed recipes and the actual sales mix. The benchmark actual cost answers to.
Theoretical food cost is the cost your sales should have generated if every recipe had been followed exactly: units sold multiplied by costed recipe, summed across the menu. Because it moves with sales mix, it stays a fair benchmark even in a volatile month. Without it, the actual food cost number floats with nothing to be judged against.
Theoretical food cost = sum of (units sold × recipe cost)
Divide by food revenue for the theoretical percentage; recipes must be costed at current supplier prices.
Illustrative: the mix report shows 1,000 plates sold at an average costed recipe of AED 15, so theoretical cost is AED 15,000. Against AED 50,000 of food revenue that is a 30% theoretical food cost, and actual consumption is then judged against it, line by line.
Cost your menu in the matrix