Food-cost variance

Food-cost variance is the daily delta between theoretical COGS (sales × recipe cost) and actual COGS (opening + purchases − closing stock). The industry baseline runs ±5–8% in chains without recipe-level inventory; LOOP merchants typically reach ±2% within 90 days. The single most actionable F&B P&L metric.

What is Food-cost variance used for in F&B operations?

In multi-outlet restaurant and F&B operations, food-cost variance is an essential component — directly affecting service speed, order accuracy and margin. See the related terms below to understand where it fits in the broader stack.

How does LOOP support Food-cost variance?

LOOP supports food-cost variance natively in its POS + KDS + inventory platform for Vietnamese F&B chains — no plugin or third-party integration required. It's one reason multi-outlet operators pick LOOP as their primary operations system.

Related terms

  • Recipe-level inventory deduction — When a sale of a menu item automatically reduces stock by the exact ingredient quantities defined in its recipe, including modifiers and toppings. This is the foundation of accurate F&B inventory and cost-of-goods reporting.
  • COGS (Cost of Goods Sold) — The direct cost of the ingredients and packaging that went into the items a restaurant sold in a period. Healthy F&B COGS is typically 28–35% of revenue depending on cuisine. Tracking it daily — not monthly — is what catches waste, theft and bad recipes early.

← Back to full glossary