What costs are included in 'Food Cost' for a Buona restaurant?
Buona Franchise · 2025 FDDAnswer from 2025 FDD Document
[Item 19: FINANCIAL PERFORMANCE REPRESENTATIONS]
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:
- (3) "Food Cost" includes costs of food and beverage items.
[Item 19: FINANCIAL PERFORMANCE REPRESENTATIONS]
The source of this data is income statements for each individual restaurant prepared internally by our affiliates consistent with generally accepted accounting principles. The same accounting system is used for each restaurant. The information has not been audited.
Definitions for Dual Brand. The terms used in the tables for Dual Brand restaurants are defined for purposes of this Item 19 statement of financial performance representation are defined follows:
- (4) "Food Cost" includes costs of food and beverage items.
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' 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 for Buona businesses.
For a prospective franchisee, understanding what is included in 'Food Cost' is crucial for accurately assessing the potential profitability of a Buona franchise. By knowing that this category encompasses all food and beverage expenses, franchisees can better manage their inventory, negotiate with suppliers, and control costs to maximize their gross profit. This information is essential for creating realistic financial projections and making informed business decisions.
It is important to note that while the FDD defines what 'Food Cost' includes, it also acknowledges that these costs can vary significantly from business to business. Factors such as the chosen supplier, distributor pricing, and shipping costs can all influence the actual food costs incurred by a Buona franchisee. Therefore, while the definition provides a baseline understanding, franchisees must conduct their own due diligence to determine the specific food costs they are likely to face in their particular location and market conditions.