F&B ratios

Franchise agreements offer advantages such as:

• Low interest loans

• Free rent

• Lower food cost due to bulk purchasing

• All of the above

Costs and expenses mean the same thing

• True

• False

Prime cost is

• COGS + Labor cost

• Wages and staff benefits

• Controllable and non controllable expenses

• COGS + Breakeven point

Which of the following actions will not reduce expenses?

• outsourcing services

• reduce food wastage

• reduce the number of suppliers

• reduce the electricity cost

Food cost, on average, should represent ____% of food revenue

• 10

• 30

• 50

• 60

Sales for year 1 : 1’200’000

70% of sales are generated by food, 30% by beverage

Food cost for year 1: 350’000

Which statement is true?

• COGS is 29.16%

• GOP is 41.66%

• Food cost of sales is 41.66%

• None of them

QSR have higher COGS than fine dining restaurants

• True

• False