H&T 1 Unit 4 Restaurant Metrics

Restaurant Metrics

Calculating Accurate Measurements, Percentages, and Estimations

​Unit 4; Lesson 4

Introduction to

Forecasting

● Importance of

estimating profits and
expenses.

● Viability assessment

for covering costs.

● Estimation of required

supplies.

Forecasting Process

Assessment of restaurant viability.

● Estimation of required

supplies.

● Determining the

number of staff needed

Tracking Trends

● Importance of tracking

trends.

● Prediction of future

outcomes.

● Estimating guest

counts.

● Average money spent

per guest.

● Short-term and

long-term benefits.

Forecasting Methods

Multiple Choice

What is the primary purpose of forecasting in a restaurant?

• Enhancing customer experience

• Estimating profits and expenses

• Creating a menu

• Setting promotional prices

●Cost of goods sold (COGS) refers
to the direct costs of producing the
goods sold by a company.

●This amount includes the cost of
the materials labor directly used to
create the good.

●It’s important because

○Calculates gross profit,
revealing how much revenue
remains after deducting direct
production costs.

○Facilitates accurate budgeting
and forecasting, aiding
businesses in managing costs
effectively.

○Influences pricing strategies
and product/service
decisions, providing insights
into overall operational
efficiency.

Cost of Goods Sold

(COGS)

Sample COGS for a $5 hamburger

Bun: $0.50

Patty: $1.50

Cheese: $0.30

Lettuce, Tomato, Onion: $0.40

Condiments (Ketchup, Mustard, Mayo): $0.20

Overhead and Utilities: $0.60

●A portion of the overhead costs associated
with running the kitchen, such as electricity,
gas, and water.

●Labor (Directly attributable to making the
hamburger): $1.00

Cost .50 +1.50 +.30 +.40
+.20 +.60 + 1.00 = $4.50

Multiple Choice

What does COGS represent in the context of a restaurant?

• Cost of Goods Sold

• Customer Order Generation System

• Culinary Order Guidelines and Standards

• Consumer Overall Gastronomic Spending

●

When our revenue covers
all expenses

●

It signifies the minimum
revenue needed to cover
all expenses

●

Let’s us know when we
become profitable

Break-even Point

●

Involves servers
recommending additional
items or higher priced items to customers with
the aim of enhancing their
dining experience and
increasing sales.

●

It transforms servers into
proactive sellers,
encouraging them to upsell
by suggesting
complementary items,
thereby maximizing the
overall order value.

Suggestive Selling

(Upselling)

Would you like to see our dessert menu?

Multiple Choice

What is the break-even point in a restaurant?

• A point of maximum revenue

• A milestone for staff performance

• A marketing strategy

• The point of covering all expenses

●

Rotating stock to prevent
spoilage.

●

Saves money

●

items are used so that the
oldest (but still good)
products are used first,
while food that has just
been delivered is saved for
another day.

First In-First Out (FIFO)

Match

Match the following

• Forecasting

• COGS

• Break-Even Point

Estimating restaurant profits & expenses

How much it costs to make an item

point where revenue covers all expenses.

• Estimating restaurant profits & expenses

• How much it costs to make an item

• point where revenue covers all expenses.

Multiple Choice

What is the purpose of suggestive selling (upselling) in a restaurant?

• Increase guest ticket sales to maximize profitability

• To get rid of menu items that don't sell

• Maximizing staff efficiency

• Minimizing customer orders

Match

Match the following

• Suggestive Selling

• First In-First Out (FIFO)

• Upselling

Offering additional products to customer

Using the oldest inventory first

Offering a better product to a customer

• Offering additional products to customer

• Using the oldest inventory first

• Offering a better product to a customer

Multiple Choice

Why is the first in-first out (FIFO) technique important in restaurant kitchens?

• To speed up service

• To use new items first

• To increase profit margins

• To prevent stock spoilage

Great work! Thank you for participating :)