How much is food waste costing your restaurant?

Most owners know waste exists and few know what it costs. A rough number is enough to decide whether it is worth your attention.

The formula

Yearly waste cost = weekly food purchases x share thrown out x 52

A worked example

A restaurant spends $8,000 a week on food and throws out 6 percent of it. That is $480 a week, or $24,960 a year. Cutting waste by a fifth would save about $4,992 a year.

The 6 percent is an assumption. Your real number could be lower or higher, which is why measuring matters.

Measure your real share in two weeks

1. Log everything that goes in the bin for two weeks, with the item, an estimated amount and a reason.
2. Add up the estimated cost of each entry using your purchase prices.
3. Divide the total by what you spent on food in the same two weeks.

Then act on the top three

Sort the log by cost. In most kitchens a handful of items and a couple of reasons account for most of the loss. Start there, and keep logging so you can see whether the number moves.