Category: Expenses & Cost Management
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The 30/30/30/10 Rule for Restaurants: Where It Breaks
The old 30/30/30/10 rule of thumb for restaurant P&Ls (30% food, 30% labor, 30% overhead, 10% profit) misses in 2026. Real benchmarks by concept.
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Restaurant Food Cost by Concept: Is 33% Good or Bad?
33% food cost means nothing without the concept. QSR wants 28-32%, steakhouses run 38-42%. Real benchmarks and the tradeoffs by segment.
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Staff Meals, Employee Discounts, and the Hidden Impact on Your Food Cost
Staff meals are one of those line items that never gets enough attention. Every restaurant has some version of a policy, free shift meals, percentage discounts, take-home of mistakes, but most operators don’t know what it’s actually costing them. After 15+ years managing restaurant P&Ls, I’ve seen employee meal programs…
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When Your Staff Unionizes: What Independent Restaurant Owners Need to Know About the Financial Impact
On May 23, 2026, employees of Third Street Stuff & Coffee in Lexington, Kentucky walked off the job. The 21-year-old independent coffee shop, a neighborhood institution on North Limestone, was in the middle of an ownership transition. Founder Pat Gerhard had announced her retirement, with new ownership set to take…
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How to Calculate Restaurant Food Cost (Step-by-Step)
Last updated 2026-07-29. Restaurant food cost is calculated by taking beginning inventory plus purchases minus ending inventory, then dividing that number by net food sales and multiplying by 100. A healthy full-service restaurant runs 28% to 32%, quick-service 25% to 30%, pizza 18% to 24%, and a bar-driven concept 22%…
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The Real Math on Third-Party Delivery: What It Actually Costs You
Third-party delivery looks cheap until you calculate true costs. Learn the math on commissions, fees, and margins and decide if delivery actually pays.
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Prime Cost: The One Number That Tells You If Your Restaurant Is Profitable
Prime cost (COGS + labor) determines restaurant profitability. Learn how to calculate it, benchmark against your concept, and fix the biggest profit leaks.