Financial analysis and
Profit Planning
Food and beverage cost control
October 26, 2024
3 areas of analysis:
• 1. MENU ANALYSIS
• 2. COST/VOLUME/PROFT ANALYSIS (CVP)
• 3. Budgeting
• Menu analysis – profitability of menu items sold ( which will sell )
• CVP analysis – deals with sales pesos and volume required by your
restaurant to avoid operating loss and make a profit
• Budgeting – allows you to plan your operating results by projecting
sales , expenses and profits.
WHY ARE THEY NEEDED…
• Menu analysis – profitability of menu items sold ( which will sell )
• CVP analysis – deals with sales pesos and volume required by your
restaurant to avoid operating loss and make a profit
• Budgeting – allows you to plan your operating results by projecting
sales , expenses and profits.
MENU ANALYSIS
METHOD VARIABLES CONSIDERED ANALYSIS METOD GOAL
FOOD COST % A. FOOD COST % MATRIX MINIMIZE OVERALL
B. . POPULARITY FOOD COST %
2. CONTRIBUTION A. CONTRIBUTION MATRIX MAXIMIZE
MARGIN MARGIN CONTRIBUTION
B. B. POPULARITY MARGIN
GOAL VALUE A. CONTRIBTION MARGIN ALGEBRAIC ACHIEVE
ANALYSIS % EQUATION PREDETERMINED
B. POPULARITY PROFIT % GOALS
C. . SELLING PRICE
D. . VARIABLE COST %
E. E FOOD COST %
MENU ITEM NO SOLD SELLING
MENU ANALYSIS WORKSHEET
TOTAL ITEM COST TOTAL ITEM TOTAL FOOD COST
PRICE SALES COST CONTRI CONTRI %
MARGIN MARGIN
STRIP STEAK 73 P17.95 P 1,310.35 P 8.08 P589.84 P 9.87 720.51 45%
COCONUT 121 16.95 2,050.95 5.09 615.89 11.86 1,435.06 30
SHRIMP
GRILLED 105 17.95 1,884.75 7.18 753.90 10.77 1,130.85 40
TUNA
FRIED CHIX 140 13.95 1,953.00 3.07 429.80 10.88 1,523.20 22
LOBSTER STIR 51 21.95 1,119.45 11.19 570.69 10.76 548.76 51
FRY
PASTA 85 14.95 1,270.75 3.59 305.15 11.36 965.60 24
SCALLOPS
BEEF 125 15.95 1,993.75 5.90 737.50 10.05 1,256.25 37
MEDALLIONS
TOTAL 700 11,583.00 4002.77 7,580.23
WEIGHTED 100 16.55 1,654.71 5.72 571.82 10.83 1,082.89 35
AVERAGE
MATRIX using Food Cost %
POPULARITY
LOW HIGH
HIGH HIGH FOOD COST % HIGH FOOD COST %
LOW POPULARITY 1 HIGH POPULARITY 2
FOOD COST % LOW LOW FOOD COST % LOW FOOD COST%
LOW POPULARITY 3 HIGH POPULARITY 4
SQUARE CHARACTERISTICS MENU ITEM
1 HIGH FOOD COST % STRIP STEAK, LOBSTER STIR FRY
LOW POPULAR
2 HIGH FOOD COST % GRILLED TUNA, BEEF MEDALLION
HIGH POPULAR
3 LOW FOOD COST % SCALLOPS, PASTA
LOW POPULAR
4 LOW FOOD COST COCONUT SHRIMP, CHICKEN BREAST
HIGH POPULAR
ANALYSIS OF FOOD COST MATRIX
SQUARE CHARACTERISTICS PROBLEM MARKETING STRATEGY
1 HIGH FOOD % HIGH PRODUCT COST 1. REMOVE FROM MENU. CONSIDER CURRENT
LOW POPULAR LACK OF SALES TRENDS. REDUCE PRICE. REDUCE PORTION SIZE
2 HIGH FOOD COST % HIGH PRODUCT COST INCREASE PRICE. REDUCE PROMINENCE ON
HIGH POPULAR MENU. REDUCE PORTION SIZE. BUNDLE WITH
LESSER COST.
3 LOW FOOD COST % LACK OF SALES RELOCATE ON MENU FOR GREATERV VISIBILITY.
LOW POPULAR REMOVE FROM REGULAR MENU. REDUCE PRICE.
ELIMINATE OTHER UNPOPULAR MENU ITEMS
4 LOW FOOD COST % NONE PROMOTE WELL
HIGH POPULAR INCREASE VISIBILITY ON MENU
•THANKS FOR LISTENING !