Step 1: Track the restaurant's cash box before and after, instead of splitting goods and change.
Before Suresh arrived, say the cash box has $M$ rupees. He hands over a fake 500 rupee note, worth nothing in real terms, and receives Rs. 338 change from the box, so the box now holds $M - 338$ rupees, plus one worthless note.
Step 2: Repeat this for the second transaction.
He hands over a fake 100 rupee note, again worth nothing, and receives Rs. 63 change, so the box drops to $M - 338 - 63 = M - 401$ rupees, plus a second worthless note.
Step 3: Account for the food and snack given away.
On top of this Rs. 401 cash shortfall, the restaurant also served a Rs. 162 meal and a Rs. 37 snack that it was never really paid for, a further Rs. 199 in goods.
Step 4: Add the cash shortfall and the goods given away.
Total loss $= 401 + 199 = 600$ rupees, the same figure as the other method, confirming the answer.
Final Answer:
The restaurant's total loss is Rs. 600.
\[ \boxed{Rs.\ 600} \]