What costs are included in the 'Food Cost' calculation for a Buona restaurant?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
ates consistent with generally accepted accounting principles. The same accounting system is used for each restaurant. The information has not been audited.
Definitionsfor Single Brand. The terms used in the tables below for the Single Brand Buona Businesses (both Free Standing and Inline) are defined for purposes of this Item 19 statement of financial performance representation as follows:
- (1) "BUONA Restaurant Sales" are defined as the portion of total revenue received from the sale of goods and services, whether by cash or by check or credit card, for BUONA Restaurant Menu Items, less sales tax.
- (2) "
Source: Item 19 — FINANCIAL PERFORMANCE REPRESENTATIONS (FDD pages 60–75)
What This Means (2025 FDD)
According to Buona's 2025 Franchise Disclosure Document, the 'Food Cost' calculation includes the costs of food and beverage items for both Single Brand and Dual Brand restaurants. This definition is used in Item 19, which provides a financial performance representation based on income statements prepared internally, adhering to generally accepted accounting principles. The same accounting system is used across all restaurants included in the financial performance representation.
For a prospective Buona franchisee, understanding the components of 'Food Cost' is crucial for accurately projecting expenses and profitability. The FDD emphasizes that this figure represents the direct costs associated with the ingredients and drinks sold in the restaurant. This is a primary expense category that directly impacts the gross profit of the business.
It is important to note that while the FDD defines what 'Food Cost' includes, it also clarifies that other expenses, such as local advertising, depreciation, rent, and various taxes, are not included in the financial performance representation and must be calculated separately. Additionally, factors like the chosen supplier, shipping costs, and local wage rates can cause material differences in food and beverage costs from one Buona location to another. Therefore, franchisees should conduct their own independent investigation and seek professional advice to assess the potential revenue, costs, and profit specific to their location.