Question

what are the examples of variable cost in a restaurant ?

Answer 1

Variable cost if the cost which varies along with the sales.

In Restaurant industry below are the example of variable cost-

1) Meal and food cost : Material used for preparation of food is variable cost for restaurant industry. If volume of customer increases meal cost will increase and vice versa.

2) Supplies : Example of supplies are napkin, Cloth etc. These item of cost also increases and decreases as per sales volume.

3) Variable staff for serving food and cooking department : This is unique for restaurant industry. There are some fixed staff eg. Watchman, accountant and supervisor. But there are other staff who do food serving and cook (Who works in kitchen) these staff volume increases during pick period (Like weekends , festival season etc.) and reduced during the low volume period.

4) Discount offered to client : restaurant industry offer lots of discount benefit to client eg. If payment is done thru particular credit card of payment wallet discount will be offered. These cost again varies in line with and is variable in nature.