COGS

Cost of goods sold: the cost of the food and drink you actually sold in a period, not just what you bought.

COGS (cost of goods sold) is what the ingredients and drink you sold actually cost you over a period. It is the biggest variable cost in most restaurants and the basis of your food cost percentage.

Because it is based on what you used, not what you purchased, you account for stock:

• Opening stock + purchases − closing stock = COGS

COGS is one half of your prime cost, the pair of costs you control week to week. Track it in a live P&L so it never surprises you at month end.