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16 Nov

Keys to Calculate Relevant Commercial Metrics that are Important to your Restaurant

Have you ever wondered how to calculate metrics that are important in the food industry? Well, you’re not alone. This is a question that many restaurateurs and chefs ask themselves. Knowing how to calculate these metrics will allow you to make informed decisions on your restaurant’s operational and marketing strategies. If you’re an owner of a restaurant, then going everyday happy hour restaurant in Calgary is hugely important to know this information because it will dictate what type of success your business achieves.

As an owner of a restaurant, understanding how to calculate the metrics above is vital. It will help you to establish what your priorities are and how you can achieve them.

Metrics help us understand our operation better. Below, you’ll learn a few of the most commonly used metrics in the food industry, along with how to calculate them:

Common Metrics and How to Calculate Them

1 Cost of Goods Sold

You need to know how much food is made in your restaurant and what quantity is made for a particular price point. The more food you make; the more money you make.

This information is obviously important to the restaurant business, and that is why there is a general rule of thumb that one kg of food (or one customer order) is equal to $1.00. So, this is a common metric for knowing how much profit your restaurant will make in a day. However, you’ll also want to know how much food is actually consumed within the restaurant. This is a more difficult figure to calculate.

COGS for the period = (Beginning Inventory of F&B) + (Purchases) – (Ending Inventory)

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2 Food Cost Percentage

Food cost is the percentage of your food and beverage costs that go to the actual product. Knowing how to calculate food costs can help you stay on budget, cut down waste, and know what products are profitable.

To calculate food cost percentage for restaurants:

– Subtract your total revenue from your total cost of goods sold (COGS)

– Take the answer and divide it by your total COGS

– Multiply this number by 100

– Then subtract the result from 100%


There is no secret to improving your restaurant. All you have to do is work hard to produce a consistently excellent product, providing your customers with an unforgettable experience every time they are casually dining in Calgary there.

As a matter of fact, the hard work has already started, and it’s time for you to perform. Once you start performing, you’ll naturally find ways to get better. It’s how people achieve their goals, right?

Many chefs, restaurateurs, and food entrepreneurs have been challenged to make calculated decisions on their businesses.

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