The average cost in the restaurant industry refers to the average cost of raw materials or dishes sold over a given period. It helps evaluate a restaurant’s profitability and optimize purchasing and pricing strategies.
It can be calculated in different ways, depending on the analysis:
Average cost of raw materials = Total food purchases / Number of dishes served- Average cost per guest = Total cost of raw materials / Number of guests served
- Average cost of a dish = Sum of the ingredient costs for a specific dish