Catering Industry Cost breakdown

The cost accounting form of the food and beverage industry was a tool used to calculate the cost of the food and beverage industry. It could be seen that there were many templates and methods for the cost accounting form of the food and beverage industry. These forms could help the restaurant owners accurately calculate key indicators such as the cost of ingredients, gross profit margin, and sales price, so as to make cost control and business decisions. The specific accounting methods included filling in the material inventory, the dish cost table, the catalog page, and so on, as well as calculating the gross profit rate, sales price, and other formulas. By using these cost accounting forms, restaurant owners could better understand their operating costs, improve their business strategies, and improve their profits.

According to the search results provided, the following conclusions could be drawn: The cost of the food and beverage industry included the cost of ingredients, rental property, labor costs, water, electricity, promotion fees, and other miscellaneous expenses. The specific cost ratio was as follows: the cost of ingredients accounted for 3 - 5 -40% of the turnover, the rental property accounted for 10-15%, the labor cost accounted for 15-20%, the water, electricity and gas accounted for 3-5%, and the promotion fee/miscellaneous fee accounted for 1-2%. These proportions were only theoretical values. The key to truly controlling the cost of food and beverage was to increase turnover. Some of the data might be different depending on the source, but overall, these proportions could be used as a reference for food and beverage costs.

There were two common cost accounting methods for food and beverage enterprises: measurement method and estimation method. Among them, the estimation method was the most commonly used method. According to the actual situation of the restaurant, the average seasoning cost of each sales specifications was calculated. Before calculating the cost, he should determine the composition of the raw materials for each dish with the chef to understand the cost composition of the dish. After determining the cost, you should communicate with the boss to determine the gross profit margin. The specific methods of cost accounting included net material rate, raw material cost, and so on. The net material ratio refers to the ratio of the weight of the usable part of the food raw materials after preliminary processing to the total weight of the raw materials before processing. The raw material cost is calculated according to the unit price of the raw material, the net material ratio, and the net material weight. The functions of food and beverage cost accounting included reasonably setting sales prices, controlling costs, promoting and improving business management, and revealing the factors that caused the rise and fall of product costs. The common calculation method was: cost of the month = beginning inventory + collection of the month-end inventory. There were different accounting methods for food and beverage costs according to the production methods and varieties of kitchen products, including the order carry-over method. In general, food and beverage cost accounting was a comprehensive calculation of the raw materials consumed by food and beverage products in order to find the cost of a certain type and quantity of products.

The Catering Cost Analysis Form was a form used to analyze the various costs of the Catering industry. We can understand that the cost of food and beverage mainly includes the cost of food raw materials, labor costs, and operating costs. Among them, the cost of food raw materials included the purchase specifications and quality of food raw materials. The calculation method of the net material rate could be calculated by the net material quantity and the net material unit price. Labor costs included employment costs, salary taxes, and employee welfare fees, which generally accounted for 12% to 18% of operating income. Operating costs include utility fees, fuel fees, insurance fees, material consumption, amortization of low-value consumables, depreciations, etc. We can use the form template to analyze and calculate the cost of food and beverage. The specific form template could be downloaded or created using software such as Excel.

The following conclusions about the development of China's food and beverage industry: According to the 2022 Annual Report of China's Catering Industry, China's food and beverage industry was in the golden stage of standardized development. Perfect standards were the inherent requirements of the industry for cooking processes, service processes, dish production, kitchen utensils, new occupations, new businesses, and other projects. Although the scale of China's food and beverage industry declined in 2022 due to the impact of the epidemic, the development of prepared dishes brought a new profit model to the industry. The prepared vegetable industry was welcoming a great era of development, and many provinces had formed a prepared vegetable industry cluster. According to the 2023 Annual Report of China's Catering Industry, the total revenue of the food and beverage industry in 2023 increased by 20.4% year-on-year to 5.29 trillion yuan, breaking the 5 trillion yuan mark for the first time. The chain rate of the restaurant industry had also reached 21%. These data showed that the food and beverage market had recovered and the quality of the industry had improved significantly. According to the 2021 Analysis of the Current Situation and Development trends of China's Catering Industry, the future of China's Catering Industry would promote the development and transformation based on the basic principles of people-oriented and serving the people's livelihood. It was estimated that by 2026, China's food and beverage revenue would reach about 8.165 trillion yuan. Overall, China's food and beverage industry was developing in the direction of standards, digitizing, and branding. The rise of prepared dishes brought new development opportunities to the industry, and the chain rate of the restaurant industry was also increasing. Despite the impact of the epidemic, the development momentum of the food and beverage industry is still good and there is still potential for growth in the future.

The six steps of food and beverage cost accounting included setting accounting objectives and scope, collecting and sorting out relevant data, allocating indirect costs, calculating costs, analyzing and evaluating costs, and formulating management measures. First of all, the goal and scope of the accounting needed to be clear. It could be the entire enterprise, a certain department, or a certain period of time. Then, collect and organize relevant data, including direct and indirect costs. Next, he would allocate the indirect costs and reasonably allocate the costs unrelated to food production. Then, he calculated the total cost and added the direct cost and the indirect cost to get the total cost. After the cost accounting was completed, the results needed to be analyzed and evaluated, comparing the cost differences between different products or services, and finding out the reasons for the differences. Finally, according to the analysis results, the corresponding management measures were formulated to improve the operating efficiency.

There were six methods to control the cost of food and beverage, including: regular inventory method, reasonable arrangement of labor allocation, full control method, reasonable purchasing, strengthening financial management, and margin cost and opportunity cost. The regular stocktaking method was a simple method to calculate costs and profits through regular stocktaking. The reasonable arrangement of labor allocation referred to the recruitment of employees according to actual needs and the reasonable arrangement of their working hours and tasks to reduce labor costs. The full control method was to achieve the goal of cost control through the active participation of all kitchen staff. Purchasing reasonably referred to establishing a stable cooperative relationship with the supplier, formulating a purchasing plan, avoiding excessive purchasing, and ensuring the quality of the ingredients. Strengthening financial management was the foundation of cost control, including establishing a sound financial system and process, recording and checking income and expenditure in a timely manner, and conducting financial analysis. Marginal cost and opportunity cost meant that while increasing production and sales, one had to consider the increase in cost and the impact of opportunity cost.

The four elements of food and beverage cost control were purchasing management, inventory management, personnel management, and dish pricing. Purchasing management was one of the most important costs of a restaurant. Through reasonable purchasing management, the price of raw materials and food could be reduced, and the cost could be reduced. The inventory management included regular inventory checks and timely adjustment of inventory quantity and quality to reduce capital occupation and food waste, and to improve capital turnover and profit margin. Personnel management involved various positions in the food and beverage business, including financial personnel, food buyers, management personnel of the food and beverage department, and grassroots staff. Through flexible human resource management, efficiency could be improved and costs could be reduced. The pricing of dishes referred to reasonable pricing based on cost and market demand to ensure profit and increase competitiveness. Through reasonable management of these four elements, the food and beverage business could reduce costs and improve efficiency, achieving sustainable development.

The Table of Catering Cost Details was a tool used to record the costs and expenses of the food and beverage industry in detail. We can get some information about the cost of food and beverages. According to documents [2] and [3], the cost of food and beverage includes the cost of ingredients, rental property, labor costs, water, electricity, gas, promotion fees, and other miscellaneous expenses. The specific cost ratio was as follows: food cost accounted for 3 - 5 -40%, rental property accounted for 10-15%, labor cost accounted for 15-20%, water, electricity and gas accounted for 3-5%, promotion fee/miscellaneous fees accounted for 1-2%. In addition, documents [1] and [5] provided some examples of detailed tables on food and beverage costs, which could be used to record the cost of raw materials, food costs, wine costs, personnel costs, rent and property fees, utility fees, depreciations, advertising fees, maintenance fees, and other expenses. To sum up, the Table of Catering Cost Details could be used to record and calculate the various costs and expenses of the Catering industry.

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