Restaurant cost variance
Actual food cost tells you what happened. Theoretical food cost helps explain why.
A useful variance compares the cost implied by recorded sales and current recipes with the cost actually consumed or reconciled during the same period.
A variance is a signal for investigation—not proof of theft, overportioning or waste. The dates, location, sales coverage, recipe coverage and count quality must match.
Reviewed: 5 September 2026
Calculate theoretical cost
For each sold menu item, multiply quantity sold by its current recipe cost, then total the result for the selected period. Keep modifiers, yields and ingredient substitutions visible.
Calculate actual cost
Use opening inventory plus received purchases minus closing inventory, adjusted for transfers and other documented movements. Compare it with revenue from the same scope.
Interpret the variance
Actual cost minus theoretical cost is the monetary variance. Divide by relevant revenue for percentage points, but inspect the operational drivers before deciding.
- ✓ Supplier price timing
- ✓ Portion or recipe drift
- ✓ Recorded and unrecorded waste
- ✓ Sales mix, refunds and staff meals
- ✓ Missing invoices, counts or recipes
Turn the gap into a review
Rank material variances by product and category, assign one owner, verify the source records and record the action. Recheck the same measure after a comparable service period.
Related product
Connect food cost to restaurant profitability
See how RestoVector connects dish cost, sales, purchasing, waste and inventory with the operating result they influence.
Next step
Review the workflow with your restaurant's data and roles.
A demonstration should show the real product, its limits and how it fits your operation.