This recipe cost calculator, listed as one of The Top Resources To Help You Design Your Own Menu by MenuShoppe.com, will help you to quickly and easily break down bulk food purchase costs into portion costs.. You can either use the calculator for individual portion costing (say a 5-ounce portion of French fries), or you can use the calculator to cost a complete recipe or a menu item. You need to consider everything, from the ingredients to how long the item takes to prep and cook, in your cost per item. Plus, you can even enter the menu price and the calculator will calculate the food cost percentage for you! The variance in stock value is either added or subtracted according to the stock take figures. To calculate your potential food cost, multiply the total cost by 100, then divide that number by your total sales. Full editing support for saved recipes. For more information on how you can manage this effectively and consistently (and benefit from many other features), why not sign up for a free 30 day trial here: http://join.kitchencut.com/registration, Your email address will not be published. interested in how their restaurants make or lose money. The formula: (Cost to prepare the dish/Menu price) x100 = Food Cost You can apply this food cost formula to any time period you’d like – a specific week, month, year, etc. If you track all of your plate costs today, you know that they can change tomorrow. Of course, you can add more ingredients, such as pickles, ketchup, etc, to the recipe to be more exact. To find the true selling price the VAT must be removed. Our potential food cost is 37.5% of our budget. Example:.30 x 100 = 30%. Plate cost, also known as recipe or portion cost, is the cost of a single menu item. https://recipecostcalculator.net/bakery-food-cost-calculator https://www.spreadsheet123.com/calculators/recipe-cost-calculator.html Required fields are marked *. Cost of recipes. In our example, we would complete the following equation: ($3,000 X 100) ÷ $8,000 = 37.5. Total food cost is the sum of all food purchases from suppliers less any returns / credits you are owed. You can calculate the cost of your dish by adding all primary and secondary ingredients, then add cost of preparation and utilities. Understanding the true cost of your menu items allows you to formulate a profit margin that is perfect for your restaurant. To calculate food cost for a recipe, add the total cost per item purchased then divide by the amount called for in the recipe. Multiply your answer by 100 to reveal your Total Food Cost Percentage. Full editing support for ingredients inventory. To make things easier for you, we have put together a free food cost calculator excel sheet that can streamline the entire process.. Menu costs are an essential part of your restaurant’s profitability. If your menus are old and the price hasn’t been corrected, you risk losing a customer for life if you charge them more than what’s on the menu. The ingredients ($2.8) cost just 28% of the menu price, and the remaining costs goes to your overhead: Food cost calculation is just part of the process because you have a lot of costs in a restaurant. Divide the total cost of the ingredient by the grams of each ingredient. Simply divide the selling price into the plate cost for the food cost ratio and multiply the ratio by 100 for the food cost percentage. Mon-Fri: 7:00am - 6:00pm Sat: 8.00 am - 2.00 pm, Eco-Friendly Paper Take-out Boxes & Pizza Boxes, Eco-Friendly Straws, Stirrers and Skewers, Take a Number Ticket Dispenser, Rolls & Kits, Menu Costing: How to Calculate Food Cost for a Recipe. F+B Engine’s Gateway provides a seamless connection between vendor and operator, enabling frictionless trading, promoting the very essence of Nextgen trading. Calculate a recipe costs by creating recipes with ingredients, then adding cost to the ingredients. This is the difference between a CHEF and a COOK, chefs are (and must be!) You may also be at risk of false advertising. Please type the letters and numbers below, Custom Promotional Products for Restaurants, Bars, and Café, Christmas Promotions and Menu Ideas for Restaurants, How Do You Sanitize Restaurant Equipment? In some countries the TAX is ONLY added on when guests are presented with the bill/check, therefore the TAX rate is not include in the selling price. You can’t just jot down a menu price and hope for the best. The food cost calculator will have divided the cost of these recipes into servings, and will display them on this recipe. The other is period cost — or the food cost for a specific period — which you can calculate using the COGS ratio. You can also calculate the food cost for the restaurant in total. The bag costs $15, or $1.5 per pound. For example, if you've purchased a 3-pound pack of chicken for $12 and the recipe calls for one-and-a-half pounds, this portion of the cost is $6. Your email address will not be published. If you were using ounces, you would divide $1.5 (cost per 16 ounces) by 16 (total ounces in a pound) to come up with your cost per ounce. Calculating overhead requires you to play the role of recipe cost calculator. To calculate the food cost per recipe for each dish, you divide your cost to prepare a dish by the menu price and then multiply by 100. The ideal food cost is between 28% and 35% of the menu price. When prices rise for these items, you may want to increase the price per item slightly. At its current rate of 20%, to remove VAT from an item divide by 1.2. How to calculate ideal food cost percentage. To know for sure, he needs to calculate his ideal food cost percentage and compare it to his actual food cost percentage. Calculate costs of recipes of all kinds - food, drink, etc. For example, if you've purchased a 3-pound pack of chicken for $12 and the recipe calls for one-and-a-half pounds, this portion of the cost is $6. JavaScript seems to be disabled in your browser. It's important to stay on top of your ingredient costs to ensure that a menu item remains profitable. When you know the overall cost, you can follow food pricing guidelines to ensure that every dish provides you with a profit. Of course, you can use any measurement you want. Enter the amount of each ingredient used in your recipe in column E. This will scale your ingredient amounts to match your desired servings, and calulate cost. Another very important calculation is to use the EP Cost (Edible Portion Cost), not the AP Cost (As Purchased Cost). We know that there are 453 grams in a pound. If you put 4 oz of of asparagus on the plate, does your recipe costing include the cost of the root end which you cut off? For example, let’s assume you purchase a 10-pound bag of rice in bulk. If you have a key menu item that is a go-to choice at your restaurant, you can’t remove the item from your menu. Food costs on a monthly or even weekly basis is also useful. In this case, the cost would be $0.09 per ounce of an ingredient. And while you’re not likely to have the exact same food costs as me (prices vary quite a bit from location to location, day to day, and even store to store), I think it’s helpful to see how each ingredient can impact the overall cost of a recipe. Our potential food cost is 37.5% of our budget. 4 This approach will help your business grow. This % needs to be added to your menu prices. The Importance of Calculating EP Cost. In our case we will just add the recipes and a hamburger bun on the recipe. How to calculate ideal food cost percentage. Standard portion costs change when food costs change, which means that standard portion costs should be computed and verified regularly, particularly in times of high inflation. Should this rate change, the calculation must change. Ingredient prices are rising, and you can’t cut back on staff. List how many grams of each ingredient you have in a recipe. In this case, take the cost of the food and divide it by the percentage food cost you wish to achieve, multiply by 100 to find the selling price and add the VAT. Calculate how much cost a recipe for your manufacturing. The actual food cost % is then calculated by dividing the COST PRICE by the SELLING PRICE and multiplying by 100 as in the equation above. Download Free Food Cost Calculator. The easiest way to calculate cost is to go to a grocery store’s online website and look up the ingredients and amounts that you will need of each of them. For the best experience on our site, be sure to turn on Javascript in your browser. You can now calculate your food cost percentage for that plate. Combined with these 11 menu pricing strategies, figuring out your food and beverage cost percentage empowers you strategically price your items and set a healthy margin.The beverage and food cost formula is also a useful tool for your kitchen manager to make orders and stock inventory without going over budget. Can I use Kitchen Cut for food cost control? If a menu item is no longer profitable, adjust your pricing or remove the item from the menu. Create unlimited recipes. Add all of the ingredient costs to come up with your cost per plate. This approach will help your business grow. To add VAT x 1.2. For example, if the TAX rate is 15%. The price you sell the dish at is the SELLING PRICE, which will have VAT included (currently set at 20% in the UK but will vary according to location). By using this form you agree with the storage and handling of your data by this website. To calculate food cost for a recipe, add the total cost per item purchased then divide by the amount called for in the recipe. The food cost calculator will have divided the cost of these recipes into servings, and will display them on this recipe. Recipe Costing: One of the questions that many chefs ask is: “How do I calculate food cost?”  Many involved in restaurant management will often shy away from getting involved with this area of the business as they have never been taught how to cost a menu or even how to calculate a Gross Profit (GP). 24%) for a given recipe; the tool will then calculate the selling price necessary to achieve that goal Our solutions manage business critical processes, track and trace operational events and interpret company-wide transactions giving you unrivalled analytics for ultimate control in your business. Your Plate Cost and Beyond You can calculate the food cost for each recipe on your menu. If costs rise, they’ll eat away at your profitability. Instead, you should pad your menu prices using the average restaurant food cost for an item. Watch the video to learn how to use our food cost calculator. But this is just the cost of the actual meal. Calculate costs of recipes of all kinds - food, drink, etc. Create a FREE account. You can also decide to train staff to recommend menu items that have a higher profit margin. Cost of recipes. Updated recipe costs keep end-of-month surprises to a minimum. https://study.com/academy/lesson/how-to-calculate-food-cost-for-a-recipe.html Please enter your email address below to receive a password reset link. But t his is just the cost of the actual meal. But t his is just the cost of the actual meal. Show More As before allowances need to be made for any variances in your stock levels. Create a FREE account. So, for easy calculation, let’s say that a dish costs $2.8 to create. Read on to figure out how the food cost calculator works! It’s important to calculate the total cost of the food you’re making before you get to the grocery store. Overall Food Cost Percentage – Based on the monthly cost of food as compared to sales. Search through the list of recipes and ingredients to save time. The actual meal monthly cost of milk each item true selling price any... Understanding the true cost of a single menu item is no longer profitable, adjust your pricing or remove item. Automatically saves inventory of ingredients to save time have put together a Free cost... Is 37.5 % of our budget by your total food sales over any given period less... Costs rise, you can how to calculate food cost for a recipe decide to train staff to recommend menu items you... The ideal food cost is 37.5 % of the ingredient by the grams of each in! 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