How to Calculate Food Cost for a Recipe - Lesson | Study.com (2024)
Now, you need to break up these prices per dish. You'll need to know how much of each ingredient you use per dish.
For your omelet dish example, each omelet dish with potatoes and bacon uses 3 eggs, 2 ounces of cheese, half a pound of potatoes, and 2 slices of bacon. To calculate the cost of each of these ingredients for the dish, you'll need to figure out how much of your purchase price your used portion works out to.
To calculate the eggs, you first figure out how much each egg is. So, you divide the $2.50 by 12 since there are 12 eggs in a dozen. You get:
$2.50 / 12 = $0.21.
You are using 3 eggs, so you multiply the cost per egg by 3. You get:
In most cases, the standard food cost percentage is a target determined by management. This formula is Total food cost / food sales = food cost percentage.
A standard recipe served in standard portions has a standard portion cost. A standard portion cost is simply the cost of the ingredients (and sometimes labor) found in a standard recipe divided by the number of portions produced by the recipe.
There are many formulae for finding cost price, but it all depends on the type of question you get. For example, Cost price = Selling price − profit ( when selling price and profit is given ) Cost price = Selling price + loss ( when selling price and loss is given )
To calculate this properly, you must divide the amount of each ingredient used in the recipe by the total amount of the unit when purchased.You then multiply that number by the price of the entire unit. This tells you the per portion cost of each ingredient that's used in the recipe.
Use the following equation: Price = Raw Food Cost of Item / Ideal Food Cost Percentage. You can slightly alter the price to make it a rounder or cleaner number. In the example below, you could change it to a number such as $14.50.
Food cost percentage is simply the cost of the ingredients you use to make your menu items, but described as a percentage of your restaurant sales. For example, if you have a food cost percentage of 30%, that means for every dollar your restaurant makes, you're spending about 30 cents on food.
Once you know the cost for the entire recipe, to calculate the cost per serving, simply divide the total cost by the number of servings stated in the recipe. In the example above, let's say that chicken dish serves 4 servings and it cost $7.15 to make. That means the cost per serving is $7.15/4 = $1.79 per serving.
For example: if a menu item is priced at $13 and the food cost was $4, your food cost percentage is 31%. We'll be using food cost percentage to calculate the price of each menu item, so keep this equation in mind as you read on.
The general form of the cost function formula is C ( x ) = F + V ( x ) where F is the total fixed costs, V is the variable cost, x is the number of units, and C(x) is the total production cost.
Food Cost = (Beginning Inventory + Food Purchases - Ending Inventory) ÷ Total Food Sales; Food Cost x 100 = Food Cost Percentage. Remember the short cut of calculating net inventory by subtracting ending inventory from beginning inventory.
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