Guessing at costs and sales prices is a disaster waiting to happen.

The best place to start is at the beginning. If you are now operating a running business, you should evaluate all your costs and menu prices. Meal costing tools make the entire process easier and you can stay on top of the profitability of your entire business.

When the process is reviewed some important decisions should be made. Adjust menu price, proportioning,can the same quality be purchased for discounts in larger quantities. Quantities sold and purchasing in larger quantities should be justified by the trending of that menu item to justify the expanded inventory.

Many times you can achieve the proper (Percent of Cost-the Cost divided by the Sales Pricet=PC) PC by adjusting both menu price and stricter proportioning. Proportioning example-Serving sizes should be measured not estimated. The same settings on a meat cutter should be used by everyone. It is important that weights be followed and calculated costs that will allow you to arrive at the correct PC.

By calculating the cost for the entire meal-main, sides and all the ingredients that went in to prepare the meal, you will know your PC.

If some menu items may have a higher PC, but those items bring the patrons and you sell liquor, the higher PC on a few items is justifiable. You make up percentages in the liquor. Knowing your bottom line will make you business profitable.