COST ANALYSIS DEFINITIONS
The most critical point that defines sustainability of a corporation, is the accurate monitoring of cost and its analysis. The initial separation can be done as follows:
- F&B cost
- Fixed costs
Each part consists of its own categories that need to be monitored carefully.
F&B cost splits to food cost, beverage cost and consumables cost
Payroll cost splits to salary cost, insurance and contribution cost
Fixed cost splits to administration expenses, general expenses, rent, loans, bills and predictions
In order to be able to monitor F&B cost, is crucial to be handled and applied, on a monthly basis and the final at the last day of the year, the inventory procedure. Results can point out the gaps and mistakes and assist to change any possible fault ways into correct ones.
Very important chapter is the existence of recipe book analysis, including both food & beverage cost analysis, which is filled in with both selling and buying price of each item, which leads to the final cost percentage according to each corporation’s policy. A sample of the file is being presented in the recipe analysis category.
In conclusion, trying to monitor and be accurate in cost analysis needs to be done by professionals, demands time, devotion and positive mood, in order to be able to give an actual view of each corporation, among consultancy for future steps.