Food cost tracking helps you make better decisions—about menu mix, pricing, and when you need funding. How food cost tracking helps cash flow decisions is a key skill for restaurant owners. Here's how to track COGS and use it to manage cash flow.
Why COGS Tracking Matters
COGS (cost of goods sold) tells you what you spent on food and beverage. Track it weekly. Compare to revenue. When COGS creeps up, margins shrink and cash flow tightens. See restaurant inventory cost control and restaurant prime cost. Restaurant cash advance or working capital can bridge gaps when food cost spikes before you can adjust.
Real Example: The COGS Alert
A restaurant tracked COGS weekly. When it jumped from 30% to 35% in one month, they investigated—supplier price increase and portion creep. They used restaurant working capital to cover vendors while they renegotiated and retrained. COGS was back to 31% within six weeks.
How to Track COGS
Inventory at start and end of period. Add purchases. COGS = opening + purchases − closing. Divide by revenue for your food cost percentage. Track weekly. Many aim for 28–35% depending on concept.
Using COGS for Cash Flow Decisions
When COGS spikes, you need to act—adjust menu, portions, or pricing. Funding can bridge the gap while you make changes. Know your options before you need them.
Bottom Line
COGS tracking informs decisions. When food cost spikes, Restaurant funding can bridge the gap. Many providers fund in 24–48 hours.
Frequently Asked Questions
How do I track restaurant COGS?
Inventory at start and end of period. Add purchases. COGS = opening + purchases − closing. Divide by revenue for food cost %.
Can restaurant funding help when COGS spikes?
Yes. Restaurant funding can cover vendors while you adjust menu, portions, or pricing. Use it to bridge short-term spikes.
What is a good restaurant food cost percentage?
Often 28–35% of revenue depending on concept. Track and compare to your history and benchmarks.