In this transcript from a video by Steve Wick of Steven J Wick & Associates PC in Fort Collins, the discussion focuses on what plate costing is, how it works, and why it is essential for restaurant profitability. The video explains how restaurants calculate ingredient costs, labor, and overhead expenses to properly price menu items and protect margins. It also highlights the importance of restaurant cost control strategies, particularly managing food costs, labor, supplies, and adjusting for inflation.
To learn more about how to strengthen your restaurant’s financial performance and avoid costly mistakes, check out our detailed guide on restaurant cost control strategies in Fort Collins.
This video is for informational purposes only and does not constitute legal or financial advice; we recommend contacting a qualified CPA to discuss your specific situation.
00:00:01 — What Plate Costing Is and Why It Matters
today we’re explaining what plate costing is and how it works [Music] not I think restaurants and one of the bigger Industries it has a ton of math in it that we don’t think about oh yeah it’s just a ton of math and measurements and costing and timing and tons of stuff that you have to always consider right plate costing is a way for restaurants to figure out how much it costs to make a dish on their menu they add up the costs of all the ingredients used calculate the labor expenses and include a share of other
00:00:44 — Including Overhead and Systems in Costing
expenses like rent this helps them set a suitable price for the dish ensuring they make a profit [Music] they have the systems in place a lot more than the smaller restaurants do for you know when they go when they tap in your order they know the charges they know how much was charged for them from the whatever food company that they’re getting the stuff from and they’ve got it and this is okay if it’s a hamburger it’s a quarter pound with a lettuce tomato a bun and a few condiments and they know
00:01:23 — Challenges for Smaller Restaurants
what that cost is immediately these smaller plates can do the same thing but you know there’s only so many hours in the day especially if they’re also the chef from the chief cook and bottle washer and whatever else more of a feel than it is actual [Music] people call us the bean counters and they don’t like us because oh you’re taking away my pepperoni or whatever but uh you know it truly is you can there’s not that much profit in a restaurant normally just these little slip ups between
00:02:02 — Food Costs, Labor, and Inflation Impact
mostly between food costs and labor cost of a tube big ones supplies sometimes they’re in there are we accounting for those things and making the price adjustments necessary just to keep up with inflation inflation will last you know year and a half it’s really really important to try and do that so when I get a new client in that’s a restaurant it’s one of the first things we look at is what is their gross profitability and [Music] foreign less food labor and direct Supply costs
00:02:56 — Starting with Gross Profitability & Call to Action
that are going into that product so we look at that heavily and we talk about that and we started working from there [Music] are you a restaurant owner struggling to optimize your plate costs and boost profits reach out to us at SJ Wick and Associates today and let’s make your restaurant a resounding success together foreign [Music] foreign
Restaurant Cost Control Strategies for Long-Term Profitability
Effective restaurant cost control strategies begin with understanding your true plate costs and gross profitability. By closely monitoring food, labor, and direct supply expenses—and making timely price adjustments for inflation—restaurant owners can protect their margins and avoid costly slip-ups. Consistent financial review and accurate costing systems are key to maintaining sustainable profits. For personalized guidance tailored to your restaurant, consult a qualified CPA to evaluate your specific financial situation.
