Maple Ridge BookkeepingFood cost
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Food cost is the share of sales a restaurant spends on the ingredients it sells, and Maple Ridge Bookkeeping tracks it as part of monthly restaurant bookkeeping so Portland owners see it by the 10th of each month.
The 30/30/30 rule is a rule of thumb that splits restaurant sales into roughly 30 percent food and beverage cost, 30 percent labor and 30 percent overhead, leaving about 10 percent as profit. It is a benchmark, not a requirement; concepts differ. Its value is giving owners a quick way to see which bucket is running hot once monthly books are closed.
Food cost percentage is the cost of food used during a period divided by food sales for that period. Cost of food used is usually beginning inventory, plus purchases, minus ending inventory. With Maple Ridge Bookkeeping, vendor invoices are recorded in the month they belong to, which is what makes a monthly food cost figure trustworthy. An invoice booked in the wrong month can make one month look terrible and the next look great.
| Bucket | Rule of thumb share of sales | What your monthly books show |
|---|---|---|
| Food and beverage cost | About 30 percent | Your actual cost of goods as a share of sales |
| Labor | About 30 percent | Wages, payroll taxes and benefits as a share of sales |
| Overhead | About 30 percent | Rent, utilities, insurance and other fixed costs |
| Profit | About 10 percent | What is left after the month closes |
The usual causes are vendor price increases, waste, over-portioning, theft, and menu prices that have not kept up with ingredient costs. Sometimes the cause is in the books, not the kitchen: invoices recorded in the wrong month, or delivery app fees mixed into food purchases. A monthly close by the 10th separates real problems from timing problems while they are still recent.
Record purchases in the right month
Vendor invoices are entered by the period they belong to.
Count inventory at month end
Your team counts key items so cost of food used can be calculated.
Calculate the percentage
Cost of food used is divided by food sales from the point-of-sale.
Compare month over month
Trends show up when the same method is applied every month.
Food cost is one of the reasons Maple Ridge works only with food businesses. Read about the monthly close to see where it fits.
The 30/30/30 rule is a restaurant rule of thumb: about 30 percent of sales to food and beverage cost, 30 percent to labor, and 30 percent to overhead such as rent and utilities, leaving roughly 10 percent profit. It is a starting benchmark, not a law. Monthly books show how close your own numbers come.
More in the FAQHigh food cost usually comes from rising vendor prices, waste, over-portioning, theft, or menu prices that have not kept up. Sometimes it is a bookkeeping timing problem, such as invoices recorded in the wrong month. Monthly books closed by the 10th let you spot the trend quickly and check which cause applies.
More in the FAQMonthly bookkeeping typically produces a profit and loss statement, a balance sheet and reconciled bank and card accounts. For restaurants, the useful views are food cost and labor as a percentage of sales. Ask during your free consultation which reports your dedicated bookkeeper will prepare for your business.
More in the FAQBusy and profitable are different things. Labor creep, food cost increases, loan payments and seasonal swings can drain cash even when the dining room is full. Monthly financial statements show where the money went, which is the first step toward fixing it.
More in the FAQDeposits rarely match gross sales because card processors deduct fees, tips may be paid out in cash, delivery apps net out commissions, and deposits land a day or more later. Reconciling those differences every month is a core part of restaurant bookkeeping, and it is where unnoticed errors usually hide.
More in the FAQBack to Maple Ridge restaurant bookkeeping in Portland
A free consultation covers how your purchases and sales are recorded today and what a monthly food cost view would look like.
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