Fnb Rates Calculator

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F&B (Food and Beverage) Cost Rate Calculator

Determine your restaurant or bar's operational efficiency by calculating the Food and Beverage Cost Rate. This metric shows the percentage of sales spent on the raw inventory required to generate those sales.

function calculateFNBRate() { var begInvStr = document.getElementById('begInv').value; var purchasesStr = document.getElementById('purchases').value; var endInvStr = document.getElementById('endInv').value; var totalSalesStr = document.getElementById('totalSales').value; var begInv = parseFloat(begInvStr); var purchases = parseFloat(purchasesStr); var endInv = parseFloat(endInvStr); var totalSales = parseFloat(totalSalesStr); var resultDiv = document.getElementById('fnbResult'); if (isNaN(begInv) || isNaN(purchases) || isNaN(endInv) || isNaN(totalSales)) { resultDiv.innerHTML = 'Please enter valid numeric values for all fields.'; return; } if (begInv < 0 || purchases < 0 || endInv < 0 || totalSales < 0) { resultDiv.innerHTML = 'Values cannot be negative.'; return; } if (totalSales === 0) { resultDiv.innerHTML = 'Total Sales cannot be zero for rate calculation.'; return; } // Calculate Cost of Goods Sold (COGS) var cogs = (begInv + purchases) – endInv; // Calculate F&B Rate Percentage var fnbRate = (cogs / totalSales) * 100; resultDiv.innerHTML = 'Total Cost of Goods Sold (COGS): $' + cogs.toFixed(2).replace(/\d(?=(\d{3})+\.)/g, '$&,') + " + 'Current F&B Cost Rate: ' + fnbRate.toFixed(2) + '%'; }

Understanding Your F&B Cost Rate

In the hospitality industry, managing the cost of food and beverages relative to the revenue they generate is crucial for profitability. The F&B Cost Rate (often just called food cost percentage or beverage cost percentage) is a key performance indicator.

This calculator first determines your Cost of Goods Sold (COGS) using the standard formula:

(Beginning Inventory + New Purchases) – Ending Inventory = COGS

It then calculates the rate percentage by dividing the COGS by your total sales for the same period:

(COGS / Total Sales) × 100 = F&B Cost Rate %

Interpreting the Results

A lower percentage generally means better profitability, as you are spending less on inventory to generate each dollar of sale. However, target rates vary significantly depending on the type of establishment:

  • Fine Dining: Often runs higher food costs (30-35%) due to premium ingredients.
  • Casual Dining: Typically aims for the 28-32% range.
  • Quick Service (Fast Food): Usually maintains lower rates (25-28%) due to high volume and lower ingredient costs.
  • Beverages/Bars: Liquor, beer, and wine costs are generally much lower than food costs, often aiming for an 18-24% combined beverage cost rate.

Regularly using an F&B rates calculator helps identify issues like theft, wastage, over-portioning, or vendor price increases.

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