By David Scott Peters
Item-by-item shows you dollar-for-dollar. If you have a POS system then you have the ability to run an item-by-item sales mix report. And this report is a great tool to help you figure out your real food cost. How? Your food cost is determined by how much of each menu item you sell, not just the total cost of each menu item. If you sell more higher-cost menu items, you’re going to have a higher food cost. But if you can sell a few lower-cost menu items, you can balance your food cost out a bit. So knowing your mix is essential for knowing your true food cost.
David Scott Peters is a restaurant expert, speaker, coach and trainer for independent restaurant owners. He is the developer of SMART Systems Pro, an online restaurant management software program helping the independent restaurant owner remain competitive and profitable in an industry boxed in by the big chain restaurants. He is best known as the SMART Systems guy who can walk into any restaurant and find $10,000 in undiscovered cash before he hits the back door… Guaranteed! Learn more at www.therestaurantexpert.com/rdspos.
Retail Data Systems Blog 
Very important tip here. Understanding the real cost of food you sell, not just how much it sells for, is crucial to keeping restaurants and snack bars afloat. Thanks for sharing!