Author :Chef Ssentongo Geoffrey

Here are the steps to calculate recipe cost:

Handy conversions for calculating:

1 . 3 tsp = 1 Tbsp

2 . 4 Tbsp =1/4 cup

3 . 2 Tbsp = 1 fluid ounce

4 . 16 Tbsp = 1 cup

5 . 2 fluid ounces = 1/4 cup

6 . 8 fluid ounces = 1 cup

7 . 16 weight ounces = 1 pound

NOTE: fluid ounces are a volume unit, weight ounces are a measurement of mass. solid ingredients are usually listed as weight ounces, liquid ingredients are listed in fluid ounces.

Step 1: Write Down The Recipe Ingredients And Quantities

Step 2: Fill In Prices For Ingredients That You Are going To Use.

Step 3 : Calculate Bulk Produce Items

What About Electricity, Gas, And Water?

Every now and then I get a question about utilities add to recipe costs. I’m confident that it would be a very small amount. For instance, in this recipe I used 1/2 cup water in the sauce. after checking my last water bill,I paid sh 10000 per gallon of water, just didactic the balance in gallon then divide by the quality plates . do the Sam to all utilities .

Step 4 : Add It All Together!

1. List down ingredients: To calculate recipe cost, list down all the ingredients used in the recipe. Make sure to include the quantity used in the recipe.
2. Determine cost of ingredients: Once you have the list of ingredients, determine the cost of each ingredient. This can be done by referring to the invoices and receipts for each ingredient or by checking the current market price of each ingredient.
3. Calculate total cost of ingredients: After determining the cost of each ingredient, multiply the cost per unit by the quantity used in the recipe. Sum up the cost of all the ingredients to get the total cost of the recipe.
4. Add cost of labor: Along with the cost of ingredients, it is important to add the cost of labor. This includes the wages of the chef who prepared the recipe, as well as any other labor costs involved in preparing the recipe.
5. Calculate overhead cost: Overhead costs are the expenses incurred in running the kitchen or food establishment, but not directly associated with a particular recipe. This includes rent, utilities, marketing, and other administrative costs. To calculate overhead cost, divide the total overhead cost by the number of recipes sold in a day.
6. Determine the profit margin: The final step is to determine the profit margin. This is the amount of profit that you want to make on each recipe. The profit margin will vary depending on your business goals, but it is usually between 5-15%.
7. Calculate recipe cost: To get the recipe cost, add up the cost of ingredients, cost of labor, overhead cost, and profit margin. Recipe cost = cost of ingredients + cost of labor + overhead cost + (profit margin x total cost)

By following these steps, you can accurately determine the recipe cost and price your menu items accordingly to ensure profitability.