Food cost variance compares actual food usage or cost with the theoretical amount expected from recipes and sales. A difference is a starting point for investigation. It does not establish theft, waste or recoverable profit on its own.
For a basic periodic inventory calculation, start with beginning inventory, add purchases and subtract ending inventory. Reconcile transfers, credits and other adjustments with the person responsible for your accounting. Use the same period and cost basis when comparing locations.
Definition source: Restaurant365 periodic inventory documentation.
Theoretical usage depends on recipes, portions, yields and the items sold. Check ingredient prices and recipe records before relying on the comparison. An outdated recipe or inaccurate count can change the apparent variance.
Definition source: Restaurant365 actual versus theoretical analysis.
First check inventory counts, units of measure and invoice timing. Then examine receiving differences, price changes, waste records, portioning and recorded comps. Keep documented causes separate from unresolved differences. Do not label an unexplained difference as theft.
Record the item, location, period, evidence, proposed owner and next check. For an invoice discrepancy, match the agreement, delivery and invoice before requesting a correction. For a portioning issue, verify the recipe and process with the manager before proposing a change.
Compare like periods and account for sales mix, ingredient prices and inventory changes. Record whether the action happened and whether the relevant figure improved. A projected benefit and a verified result are different records.
In one po'boy restaurant's review, 54 supplier invoices totaling $107,721 were absent from the reporting system's invoice and purchase records. Those invoices covered July 6 through September 2, 2026. In July alone, the system showed $5,219 in purchases across all vendors while the missing supplier's invoices totaled $54,139.
The plan called for repairing the feeds and checking a complete month of records. It claimed no recovered cash from the finding.
Marty can trace supplier invoices into your reporting system's records as part of a paid Cash & Profit Review. We agree on the records and period first. You get a list of gaps your bookkeeper can work through, with the invoices behind each finding. Ongoing help is optional and agreed separately.
Source: An anonymized Marty cash recovery plan dated September 5, 2026. Findings in the plan; no verified recovery claimed.
Marty is your outsourced Chief Profit Officer for Restaurants. The paid Cash & Profit Review examines the operating data you authorize, including food-cost records within the agreed scope. You receive findings, supporting evidence, proposed owners, recommended fixes and an action plan.
The review depends on the records available. It does not promise to explain every variance or recover a fixed percentage. Your team can run the plan; managed continuation is optional.
Describe your locations, inventory and accounting systems, and the problem you want reviewed. Relevant records may include inventory counts, supplier invoices, recipes, sales mix and waste records. Agree on authorized access and scope before sharing data.
Use your own recipe standards, accounting definitions and comparable periods. This guide does not set a universal threshold or treat every difference as recoverable money.
Related: four restaurant cash review findings, restaurant labor cost control, Chief Profit Officer for Restaurants, and how to increase restaurant profit.
Tell us about the locations and food-cost issue you want reviewed.
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