1. Restaurant Labour Costs
These can consist of hourly wages and salaries ($150,000+), healthcare ($30,000+), bonuses ($10,000+), overtime pay ($30,000+), holiday and sick days ($10,000+), additional labor-related expenses.
Calculating the labour cost percent is more useful than the complete labour cost itself.
To calculate the yearly labor cost percentage for a calendar year, divide the whole labour cost for this year by the total earnings of that year and multiply it by 100.
2. Restaurant food prices
These include the plate price (the price of one dish) and period price (food price on a particular time period). You can figure out the period cost using the COGs formula.
To figure the food cost, you can divide the complete portion cost of all of the ingredients required to prepare a dish and then divide it by the sales price of the dish.
3. Restaurant utility prices
These prices are technically an expense because these include natural gas, electricity, water, mobile phone, internet, cable, and similar expenses. The utility cost will vary based on the size of your restaurant, location, infrastructure, and climate. Generally, restaurant owners will need to assign about 5 percent of the total costs to utilities.
To keep your utility costs under control, we are able to negotiate prices on your behalf. Energy-saving appliances can also enable you to lower electricity costs.
4. Restaurant kitchen equipment costs
Expect to spend around $80,000 for these expenditures.
Also incorporate furniture like shelving, chairs, and tables. The complete cost of these objects can range from $5,000-$40,000.
There’s also your kitchen gear, like fryers, refrigerators, oven, and freezers. You should set aside about $100,000 for purchasing such equipment.
You can purchase used restaurant equipment or rent equipment to decrease the overall costs.
5. Restaurant Point-of-sale (POS) system
These include the following:
- Installation prices. They refer to one-time hardware charges for workstations, cash drawers, wifi routers, POS display terminals, receipt and purchase printers, and credit card readers. The complete cost can vary from $600-$,3000 based on the amount of POS screen you need and the seller.
- Payment processing charges.
- Support and maintenance costs
- centric applications subscription fees ($70-$400 per month)
Thus, there are lots of factors you need to consider when you intend to calculate the expense of opening and running a restaurant. The most significant costs that you must consider are meals cost, labor cost, and the prime price. You also need to implement various cost-control strategies if you do not want the price and expenses to get out of control. As soon as you learn how to operate your restaurant by keeping your costs under control, you’ll have the ability to generate profit.