Glossary

What is Cost of Goods Sold (COGS)?

Last updated: July 7, 2026

Cost of goods sold is the direct cost of the food and beverage a restaurant sold in a period, calculated from inventory movement and purchases. COGS is the largest controllable expense after labor and the denominator discipline behind food cost percentage.

Cost of Goods Sold (COGS) example with real numbers

Beginning inventory $18,000 + purchases $55,000 − ending inventory $16,500 = COGS of $56,500 for the period.

How multi-unit restaurant groups manage cost of goods sold (cogs)

Vento reconciles COGS per location from invoice and POS data continuously, replacing the spreadsheet ritual at month close.