Home —Restaurant owners — Recipe Costing

Author :chef ssentongo Geoffrey

Recipe Costing For Your Restaurant Has Never Been Easier


What it means and how to calculate it?

Recipe Costing is a one-time occurrence, it’s an ongoing process. When food costs change, you recipe costs also change.

The actual purpose behind plate costing is so that you can price your menu items in a way that ensures you’ll make money.

If you notice a higher food cost than usual, you can adjust your selling price, reduce portion sizes or, find the same or a similar ingredient at a lower cost.

As much as you enjoy the restaurant industry, at the end of the day, you have to make profit.

So how exactly do you calculate the cost for a recipe?

What is Recipe Costing?

Recipe Costing is exactly what it sounds like calculating the cost of a single dish on the menu.

If you’ve ever written a menu, then you know how complicated and time consuming this process can be.

How to Calculate Plate cost?

Let’s make a steak :

Step one: measure out the quantity of each ingredient in a dish ( 200g is beef steak, 500g chips, 2g oil or butter, 10ms ketchup, 5ms cream etc.)

Step Two: Calculate the price for each ingredient in the dish. Things get tricky here because you are dealing with different pack sizes and units of measure. Let’s use Ribey steak as an example.

Your recipe requires 200g to Ribey steak but when you bought the beef it came in a 2kg package. We will need to convert in gms.

We now need to determine the price per gm. Since the original purchase cost was 10000 sh, we simply divide Sh 10000 by 200g which equals to sh 5 Per gm.

To determine the cost of an 200g patty we multiply 200g × 0.5. which equals 1000. So1000 for our 200g steak patty.

Step Three: Complete the following for every item in that price and add them together.

This equals your plate cost ( recipe cost) in a Shillings or dollar amount.

Step Four : Culculate Food Cost :

Recipe cost ÷ Selling price × 100 will give you your Food Cost percentage.

You will have to do this for every item on your menu! Who’s got time for that?

To make it even more difficult, ingredient prices are consistently changing. The price for beef just went up, decreasing your margins.

You now have the glorious task of going back into every recipe and changing the price for beef.


Restaurant inventory Guide & Calculator

It’s your guide to a more efficient inventory.

Do you know how efficient your inventory is?

Or how many days you hold an average inventory?

Many restaurateurs don’t know their turnover rate. That’s why I put together the inventory turnover ideas and calculator.

With it, you’ll be able to calculate your :

* Cost of Goods Sold

* Average Inventory

* Inventory Turnover ( COS)

* Inventory Turnover ( Sales)

* Average Days on Hand


Running a restaurant is hard work. So I’ve got every tip, trick and piece of advice you could need to make life a little easier. And a little more profitable, too.

Let me help you run a smarter restaurant. Want a place to start? Click on this link below. http://www.chefsideacafe.food.blog

How the food cost Dashboard works :

All your key metrics in one place

Food cost Dashboard is the central location for all your accounts key metrics. Get an overview of food spend, sales, purchases, and your cost of Goods sold. The dashboard is updated weekly to help you keep your restaurant profitable.

Compare Food Cost Trends

Quickly review your food cost percentage and food spend over a 2 month period. See how it compares to your food cost goal. Now you’ll know exactly what your cost of Goods sold is and what you can do to decrease it.

Review Food Spend Budget Trends

Get an overview of the last four weeks of food spend. Check for trends and notated any weeks for additional review.

Know When You’re Over Budget

Know exactly how much each supplier order effects your weekly food budget and get notified when you’ve gone over.

What is next?

Visit our website

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