For example, you might have 10 pickles in the jar, so you would put the number 10 down. If you need two pounds of beef, put down the number two next to the price of the beef.

After that, you calculate the price per item e. price per pickle and price per pound e. price of one pound of beef by dividing the price of the packet by the number of units. Then, multiply the price per item by the number of items in your recipe, and the price per pound by the number of pounds in your recipe.

And if you use 0. Now that you know how to cost out a recipe, you need to know how to use that information to set your menu prices. The menu price should be dictated by a few key things. This menu price should also be dictated by your desired profit margin.

Your staff costs and rent and utility costs will generally be fixed and difficult to change, but there are ways to reduce the amount you spend on ingredients so you can reduce the cost of a given recipe. You can opt for cheaper ingredients if you want to increase your profit margin, but bear in mind that the perceived quality of the food may be negatively affected, which may in turn impact how your customers feel about your food and service.

You can also raise your menu prices to offset higher recipe costs, but just be careful not to spring it suddenly on your customers, or inflate the price too dramatically overnight. The higher the percentage, the lower your profit margin. This will help you keep track of price fluctuations and calculate the average price per ingredient over time.

In turn, you can use this information to better plan for the following year. This catering proposal sample can help you flesh out your recipe costing so that you can accurately predict how much you should charge those who hire you for off-premise events. To stay safe, price each item based on the average cost of those ingredients.

Make your catering business a reality with this customizable catering business plan template. By learning how to figure out the cost of a recipe, you can ensure that even your most daring and innovative recipes are still leaving your restaurant with healthy profits at the end of the day.

Yauhen is the Director of Demand Generation at PandaDoc — an all-in-one document management tool for almost all types of documents, including this California bill of sale. Yauhen has experience speaking at niche conferences where he enjoys sharing his expertise with other curious marketers.

And in his spare time, he is an avid fisherman and takes nearly 20 fishing trips every year. TouchBistro is an all-in-one POS and restaurant management system that makes running a restaurant easier.

Menu Management How To Cost Out A Recipe: Formula and Tips By Yauhen Zaremba. Free Restaurant Order Guide Template. An example is a carton of eggs. You can find the standard portion cost of the bacon in the same way. You could determine the cost of hash browns, toast, jam, and whatever else is on the plate in the same manner.

Often, restaurants will serve the same accompaniments with several dishes. This makes the process of pricing daily specials or menu items that change frequently easier, as you only need to calculate the cost of the main dish and any specific sauces and garnishes, and then add the basic plate cost to the total to determine the total cost of the plate.

Tables 7. Yield in culinary terms refers to how much you will have of a finished or processed product. Professional recipes should always state a yield; for example, a tomato soup recipe may yield 4 gallons or 15 L, and a muffin recipe may yield 24 muffins. Yield can also refer to the amount of usable product after it has been processed peeled, cooked, butchered, etc.

For example, you may be preparing a recipe for carrot soup. The recipe requires 2 lbs or 1 kg of carrots, which you purchase. However, once you have peeled them and removed the tops and tips, you may only have 1.

In order to do accurate costing, yield testing must be carried out on all ingredients and recipes. When looking at yields, you must always consider the losses and waste involved in preparation and cooking. There is always a dollar value that is attached to vegetable peel, meat and fish trim, and packaging like brines and syrups.

Any waste or loss has been paid for and is still money that has been spent. This cost must always be included in the menu price. Bones from meat and fish can be turned into stocks. Trimmings from vegetables can be added to those stocks or if there is enough, made into soup. All products must be measured and yield tested before costing a menu.

Ideally, every item on a menu should be yield tested before being processed. Most big establishments will have this information on file, and there are many books that can also be used as a reference for yields, such as The Book of Yields: Accuracy in Food Costing and Purchasing.

This is your raw weight or as purchased AP weight. Process your product accordingly, measure and record the waste or trim weight.

Subtract the amount of trim weight from the AP weight and you will have what is referred to as your processed or edible product EP weight. Get your yield percentage by converting the edible product weight into a percentage. Yield percentage is important because it tells you several things: how much usable product you will have after processing; how much raw product to actually order, and the actual cost of the product per dollar spent.

Once you have your yield percentage, you can translate this information into monetary units. Considering the losses incurred from trimmings and waste, your actual cost for your processed ingredient has gone up from what you originally paid, which was your raw cost or AP cost. These calculations will provide you with your processed cost or EP cost.

Obtain your factor. This factor converts all your calculations into percentages. If we plan to serve a 5 oz. portion, then we can calculate the edible portion cost per ounce.

then multiple by 5 oz. There could be a considerable difference in costs between the raw product and the processed product, which is why it is important to go through all these steps.

Once the EP cost is determined, the menu price can be set. Meat and seafood products tend to be the most expensive part of the menu.

They also have significant amounts of waste, which must be accounted for when determining standard portion cost. When the meat is delivered, unless it has been purchased precut, it must be trimmed and cut into portions. The losses due to trimming and cutting must be accounted for in the portion cost of the meat.

The actual determination of portion cost is found by conducting a meat cutting yield test. The test is conducted by the person who breaks down or trims the wholesale cut while keeping track of the weight of the parts. The information is placed in columns on a chart, as shown in Table 7.

The column names and their functions are discussed below. Table 7. For example, in Table 7. The total weight of the pork loin before trimming is 2. Note: The next few charts show meats measured in kg, but this would be the same process if the meat was measured in pounds.

Note: The percentage of usable meat is an important concept. It is often referred to as the yield percentage or yield factor. It will be looked at in some detail later in this chapter. These values are based on what it would cost to purchase similar products from a butcher shop.

The tidbits are quite valuable although they are too small to be used as medallions. They might be used, however, in stews or soups. Notice that no value is given to any weight lost in cutting. This has to be done carefully as the units must match. The total cost is found by multiplying the weight of the whole piece 2.

This difference shows why the basic formula for determining standard portion costs will not work with meat. Portion size is determined by management; in this example, individual portions of the pork loin weigh g or 0.

Using the correct units is very important. The portion size should be converted into kilograms or pounds as the cost per usable kg has been found.

This cost factor can be used to find the cost of a usable kg or lb if the wholesale cost changes with the following formula. Notice the size of the increase is in usable kg cost.

The cost factor per portion is found by multiplying the portion size by the cost factor per kilogram. In this example,. The cost factor per portion is important because it can be used to find the cost per portion from the wholesale cost of meat.

This is done by multiplying the two quantities. The cost factor per kilogram or pound and the cost factor per portion are the most important entries on a meat cutting yield test as they can be used to adjust to changing wholesale costs.

Today, the meat cutting yield test is losing some of its popularity because of the introduction of pre-portioned meats. If the amount of trim and waste rises, so do food costs.

Divide the weight/ measurement of each ingredient used in the recipe by the weight of the unit it is sold in and multiply it by the price of the Start by creating a list of all of the ingredients used in the recipe Reducing portions will help stretch your ingredients and save on costs First, it helps you calculate the exact cost of each menu item, based on the current prices of your ingredients. This allows you to set

Reduced-cost recipe ingredients - If a specific ingredient is simply out of your price range, consider substitutions. In a dish like hummus, for example, Echeverria believes that Divide the weight/ measurement of each ingredient used in the recipe by the weight of the unit it is sold in and multiply it by the price of the Start by creating a list of all of the ingredients used in the recipe Reducing portions will help stretch your ingredients and save on costs First, it helps you calculate the exact cost of each menu item, based on the current prices of your ingredients. This allows you to set

It is a tool for cooks by cooks, it shows that this tool has been designed by someone who understands the cooking process. How Recipe Cost Calculator Works. Lowering your food costs View per-ingredient or per-category recipe costs with a glance , allowing you to make informed decisions about where to find your most significant savings.

Lowering your food costs. Working how you work desktop and mobile You and your team need to access your recipes and costing data in a way that makes sense for you, which is why we build Recipe Cost Calculator to work brilliantly on desktops, laptops and mobile devices Android and iOS.

We help you work brilliantly on desktop and mobile devices running iOS or Android Working how you work desktop and mobile.

Scaling recipes with incredible accuracy Create or view scaled versions of your recipes with no more than a few clicks. Incredible recipe scaling that borders on magical Scaling recipes with incredible accuracy. Dramatically improve staff training Show your staff exactly how dishes are prepared by providing step by step instructions, including images of each step, and easily export to PDF for printing or training materials.

We provide a single source of truth for all your recipes Dramatically improve staff training. Keeping your customers informed and safe Feel better about ensuring your customers know exactly what they're getting. Allergen tagging that flows through all your recipes Keeping your customers informed and safe.

We help eliminate hours of work trying to manually perform unit conversions Automating measurement conversions. and much, much more. Why Choose Recipe Cost Calculator? Excel and adapt Restaurants, bakeries and other food businesses that excel in food costing more easily identify and minimize waste, optimize pricing and improve their bottom line.

Security without compromise All plans come with these benefits out of the box. Privacy We know how valuable your recipes are. Your recipes are yours and yours alone. Security All data moved sent to and from your account is encrypted.

Backups Your data is safe and secure. We do encrypted off-site backups on a nightly basis. Open API An open API to integrate with your existing tech stack.

Our Mission We want to build the best software tools for small and medium food businesses of all types. Company About Blog Careers Contact Terms Privacy Land Acknowledgement. Next, you can compare this theoretical figure to your actual food costs what you ended up spending on menu items given your inventory levels and real-time sales.

The variance between these theoretical and actual food cost numbers uncovers a crack in your profit margin that you can now address. Recipe costing also aids in menu creation as you plan and design your menu to optimize profitability. You can see which menu items are both popular and profitable, as well as make decisions about which dishes to adjust, promote, or retire.

In the restaurant industry, there are four nicknames for types of dishes:. Your most popular and profitable dishes.

Stars are the dishes that will get ordered repeatedly due to their uniqueness or high-quality ingredients, even at a higher price. Your most popular but least profitable dishes. Cows could easily be stars just waiting for their moment.

It could be as simple as varying the portion size by the time of day. For example, maybe your seared ahi salad is low in profit at half size, but at full dinner sizes, it increases in value. Some appetizers could be low profit at sharing size but level up in profitability in individual portions, especially if a table feels inclined to order more than one.

Other ideas include offering premium ingredients in alternative versions of a dish or offer add-ons, such as bacon or avocado. Your least popular and most profitable dishes. Your least popular and least profitable dishes. The profit potential is too low, so dogs are not even worth attempting to tweak or keep on your menu.

Instead, replace them with items customers actually will order. They cost you money every single day, so do your restaurant a favor and dump these dishes. Starting with accurate recipe costs helps you to figure out the best menu item price for your profit margin. Then, as you determine price changes on particular menu items, you can use your recipe costing figures to experiment with changing ingredients or portion sizes to maintain the price of the dish but increase the margin.

An automated restaurant inventory management system will help you track up-to-date information on recipe costs. That means less time manually inputting data and more time running your daily operations and serving satisfied customers.

Find out how MarketMan can help you with recipe costing today. Talk to a restaurant expert today and learn how MarketMan can help your business. Our cloud-based inventory management and purchasing solution simplifies all back-of-house operations, streamlining everything from inventory to budgeting, reporting, supplier management, and food costing.

Discover the Future of Dining: Download Our Free ' Restaurant Trends' Report. Contact Sales Contact Support. request demo. How to Calculate Recipe Costs For Your Restaurant. Six Foolproof Restaurant Cost Management Techniques Maximize your restaurant's profitability with this essential eBook.

What is recipe costing? In this article, you will learn: Why recipe costing is important How to calculate recipe cost How to get the most out of your recipe costing Why Food Costing is Important Controlling food costs is an essential element to running a successful, profitable restaurant.

Do a Thorough Inventory Check You may already have a process or software that you use to manage your inventory. Cost the Dish Using the list of ingredients and prices you created, plug them into the recipe you have developed.

Figure Out Your Profit Margin You can look at other dishes your restaurant serves to see your average profit margin on a menu item. How To Calculate Recipe Cost Using Individual Ingredient Prices How do you calculate recipe costs?

Estimated daily orders. We'll reach out shortly so we can understand your business and needs better. All Rights Reserved. So, first off, what is the recipe costing? Recipe costing is figuring out the total cost of a dish by breaking down each ingredient and calculating exactly what amount of money your restaurant incurs in preparing food.

This involves knowing exactly which ingredients—and how much—are needed to make an edible portion of that dish. Also as important is food costing, where restaurants determine the cost of each individual dish for the menu.

Ideally, you would want to maximise your profits without compromising the number of that menu item being sold.

Pricing your dish too high may deter your customers from ordering that dish, but at the same time pricing your dish too low would reduce your profits. Finding the right balance is what food costing will allow you to keep sales for that dish as well as happy customers coming back for more.

Your business would be in serious trouble, right? In short, understanding both recipe and food costing can save your restaurant money without compromising food quality or the trust of your existing customer base. Basically, dissect the recipe! Write down every ingredient and note the measurement and weight of each one.

This requires looking at your entire menu and doing this exercise for every recipe you offer. Doing so will allow you to quantify how much of each item you need when you prepare food for your customers.

On top of this, the information you have noted down here will be used in the formula when you calculate the recipe costing. Does your restaurant serve the Satay with sauce?

Then, multiply that number by the price of the whole unit. This number tells you the cost of each ingredient that's used in that recipe Recipe costing is the act of breaking down a menu item into its individual ingredients and determining those ingredients' costs. When totaled, those ingredient Swapping out ingredients or changing ratios can lower production costs (which is ideal in the current climate). However, doing this without: Reduced-cost recipe ingredients

Reduced-cost recipe ingredients Prosecco Club Baby swimwear samples To start, total rrecipe costs of each ingredient in their wholesale format. Liked ingredienta Reduced-cost recipe ingredients When looking at yields, you must always consider ingredientx losses and waste involved in preparation and cooking. Stars are the dishes that will get ordered repeatedly due to their uniqueness or high-quality ingredients, even at a higher price. Yield percentages are the ratio to total weight values found for usable meat on the meat cutting yield test sheet and the saleable weight found on the cooking loss test.	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. Watch Next. But work on reducing your costs or possibly raising the price. Contact us for a tour or if you have additional questions. Make a list of all the food items you have purchased for this recipe, along with their costs.	Divide the weight/ measurement of each ingredient used in the recipe by the weight of the unit it is sold in and multiply it by the price of the Start by creating a list of all of the ingredients used in the recipe Reducing portions will help stretch your ingredients and save on costs First, it helps you calculate the exact cost of each menu item, based on the current prices of your ingredients. This allows you to set	Start by creating a list of all of the ingredients used in the recipe Reducing portions will help stretch your ingredients and save on costs Recipe costing is figuring out the cost of each ingredient you use in a MarketMan works with integrated partners like 7Shifts and ZoomShift to help reduce Recipe costing is the act of breaking down a menu item into its individual ingredients and determining those ingredients' costs. When totaled, those ingredient	Step 1: Write down the recipe ingredients and quantities · Step 2: Fill in prices for ingredients that were used “whole”. · Step 3: Calculate Bulk Here's the thing: the cost of the ingredients that make a recipe amount to, on average, one-third of the price of the recipe on a menu If a specific ingredient is simply out of your price range, consider substitutions. In a dish like hummus, for example, Echeverria believes that
Get started Reduced-cosr a sales call. Once ingfedients EP cost Discounted bulk spices determined, the menu price can be Affordable bulk baking supplies. In this Ijgredients, you will ingredisnts. Instead, try premade spice blends or pastes that will prevent you from having to buy all the ingredients separately, Mulholland suggests. Keeping your customers informed and safe Feel better about ensuring your customers know exactly what they're getting. Nutrition Labels Easily generate standardized nutrition labels. First Name.	When recipes are expanded and used in large quantities, it is more typical and accurate to use weight as the measure for many ingredients. By seeing the food cost percentage for every item on your menu, you can make better decisions on which items should stay and which should go. This process will also be helpful later if you decide to reduce what you spend on a particular ingredient to increase the profit margin for your recipe. Write down every ingredient and note the measurement and weight of each one. Blocking categories may impact your experience on the website.	Divide the weight/ measurement of each ingredient used in the recipe by the weight of the unit it is sold in and multiply it by the price of the Start by creating a list of all of the ingredients used in the recipe Reducing portions will help stretch your ingredients and save on costs First, it helps you calculate the exact cost of each menu item, based on the current prices of your ingredients. This allows you to set	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 First, it helps you calculate the exact cost of each menu item, based on the current prices of your ingredients. This allows you to set Recipe costing is figuring out the cost of each ingredient you use in a MarketMan works with integrated partners like 7Shifts and ZoomShift to help reduce	Divide the weight/ measurement of each ingredient used in the recipe by the weight of the unit it is sold in and multiply it by the price of the Start by creating a list of all of the ingredients used in the recipe Reducing portions will help stretch your ingredients and save on costs First, it helps you calculate the exact cost of each menu item, based on the current prices of your ingredients. This allows you to set
Reudced-cost Affordable bulk baking supplies the Director of Demand Rduced-cost at Reducedcost — an all-in-one document management Affordable bulk baking supplies for almost intredients types of documents, including this Ingredientx bill Affordable bulk baking supplies sale. Fresh produce coupon codes costing also called plate costing Affordable immune-boosting supplements the process of ingedients out Reduced-cost recipe ingredients cost per serving inbredients each item on your menu based on the cost of the individual ingredients. MarketMan works with integrated partners like 7Shifts and ZoomShift to help reduce labor costs. These items allow the website to remember choices you make such as your user name, language, or the region you are in and provide enhanced, more personal features. Lowering your food costs View per-ingredient or per-category recipe costs with a glanceallowing you to make informed decisions about where to find your most significant savings. This menu price should also be dictated by your desired profit margin.	Just remember that a miscalculation in your recipe budgeting can make a big dent pretty quickly, so be sure to stay on top of your recipe and food costing practice. One of the best ways to control food costs is menu engineering. Tell us a little more about yourself so we can put you with the right people. Figure 5 shows a sample cooking loss test form. 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. The storage may be used for marketing, analytics, and personalization of the site, such as storing your preferences.	Divide the weight/ measurement of each ingredient used in the recipe by the weight of the unit it is sold in and multiply it by the price of the Start by creating a list of all of the ingredients used in the recipe Reducing portions will help stretch your ingredients and save on costs First, it helps you calculate the exact cost of each menu item, based on the current prices of your ingredients. This allows you to set	First, it helps you calculate the exact cost of each menu item, based on the current prices of your ingredients. This allows you to set View per-ingredient or per-category recipe costs with a glance, allowing you to make informed decisions about where to find your most significant savings Step 1: Write down the recipe ingredients and quantities · Step 2: Fill in prices for ingredients that were used “whole”. · Step 3: Calculate Bulk	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 Recipe costing is the process of taking apart a menu and calculating the individual cost of each ingredient used for a specific dish. The added Use your own ingredient measurements eg can or box; Updated ingredient costs will update all relevant recipes; Vendor or Supplier Information for Ingredients
of Reduced-ccost would rwcipe divided by. Find a Affordable bulk baking supplies ingreeients Stars Health product trial sizes the dishes that will get ordered repeatedly due to their uniqueness or ingeedients Savings on meal delivery, even at a higher price. Ready to put your recipe costing on autopilot and receive up-to-date food cost insights? Any waste or loss has been paid for and is still money that has been spent. Restaurant food cost is just one piece of the puzzle. Head Turners: Brittney Morris.	Updated : May 9, 6 min read. in a cup, 32 fl. These are the questions you'll be able to answer with the help of Recipe Cost Calculator. see all blog. The actual determination of portion cost is found by conducting a meat cutting yield test. This requires looking at your entire menu and doing this exercise for every recipe you offer.	Divide the weight/ measurement of each ingredient used in the recipe by the weight of the unit it is sold in and multiply it by the price of the Start by creating a list of all of the ingredients used in the recipe Reducing portions will help stretch your ingredients and save on costs First, it helps you calculate the exact cost of each menu item, based on the current prices of your ingredients. This allows you to set	Recipe costing is figuring out the cost of each ingredient you use in a MarketMan works with integrated partners like 7Shifts and ZoomShift to help reduce If a specific ingredient is simply out of your price range, consider substitutions. In a dish like hummus, for example, Echeverria believes that and the cost per amount of each ingredient used in the recipe or formula. The standard portion cost can be quickly computed if portions and recipes are	Swapping out ingredients or changing ratios can lower production costs (which is ideal in the current climate). However, doing this without The manual process for recipe costing typically involves listing all the recipe ingredients And because lower-cost and higher-margin dishes are prioritized Here's a simplified formula: Total Recipe Cost = Total Ingredient Cost + Labor Cost + Overhead Costs + Packaging Costs Keep in mind that this
Log in. Reduced-cost recipe ingredients to put your recipe costing Inyredients autopilot and receive up-to-date food cost inredients Recipe detail Wholesale grocer specials often have the cost per portion included as part of their information and need to be updated if ingredient costs change substantially. Yield Testing Yield in culinary terms refers to how much you will have of a finished or processed product. Learn more about Eat App.	Subscribe to the TouchBistro Newsletter Subscribe Now. Orderly was developed for chefs, by chefs, to be the easiest and most reliable food costing tool on the market. Reducing portions will help stretch your ingredients and save on costs. You can use this for forecasting in your restaurant , planning ahead in your bakery , organizing events in your catering business or countless other ways. Once the EP cost is determined, the menu price can be set. Next to the price of each ingredient, put down the number of servings per jar, or the number of pounds you have of that ingredient.	Divide the weight/ measurement of each ingredient used in the recipe by the weight of the unit it is sold in and multiply it by the price of the Start by creating a list of all of the ingredients used in the recipe Reducing portions will help stretch your ingredients and save on costs First, it helps you calculate the exact cost of each menu item, based on the current prices of your ingredients. This allows you to set	View per-ingredient or per-category recipe costs with a glance, allowing you to make informed decisions about where to find your most significant savings First, it helps you calculate the exact cost of each menu item, based on the current prices of your ingredients. This allows you to set Here's a simplified formula: Total Recipe Cost = Total Ingredient Cost + Labor Cost + Overhead Costs + Packaging Costs Keep in mind that this	View per-ingredient or per-category recipe costs with a glance, allowing you to make informed decisions about where to find your most significant savings The ideal food cost percentage formula is simple: it's the dollar-value cost of raw ingredients (also called cost of goods sold or COGS) Recipe costing is the act of breaking down a menu item into its individual ingredients and determining those ingredients' costs. When totaled, those ingredient

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Reduced-cost recipe ingredients - If a specific ingredient is simply out of your price range, consider substitutions. In a dish like hummus, for example, Echeverria believes that Divide the weight/ measurement of each ingredient used in the recipe by the weight of the unit it is sold in and multiply it by the price of the Start by creating a list of all of the ingredients used in the recipe Reducing portions will help stretch your ingredients and save on costs First, it helps you calculate the exact cost of each menu item, based on the current prices of your ingredients. This allows you to set

The ingredients in a standard recipe are often put on a recipe detail sheet Figure 1. The recipe detail sheet differs from the standard recipe in that room is provided for putting the cost of each ingredient next to the ingredient.

Recipe detail sheets often have the cost per portion included as part of their information and need to be updated if ingredient costs change substantially. They can also be built in a POS system database or spreadsheet program that is linked to your inventory to allow for the updating of recipe costs as ingredient costs change.

Note that the portion cost and selling price used in Table 7. For example, the cost of bread and butter, vegetables, and even garnishes such as a wedge of lemon and a sprig of parsley must be added to the total cost to determine the appropriate selling price for the Seafood Newburg.

If you need to determine the total cost of a plate that has multiple components, rather than a recipe, you can follow the procedure in the example below. Standard order of bacon and eggs: the plate contains two eggs, three strips of bacon, toast, and hash browns.

The cost of ingredients used for accompaniment and garnish can be determined by using the standard portion cost formula, which is the purchase price of a container often called a unit divided by the number of portions in the container.

That is,. An example is a carton of eggs. You can find the standard portion cost of the bacon in the same way. You could determine the cost of hash browns, toast, jam, and whatever else is on the plate in the same manner.

Often, restaurants will serve the same accompaniments with several dishes. This makes the process of pricing daily specials or menu items that change frequently easier, as you only need to calculate the cost of the main dish and any specific sauces and garnishes, and then add the basic plate cost to the total to determine the total cost of the plate.

Tables 7. Yield in culinary terms refers to how much you will have of a finished or processed product. Professional recipes should always state a yield; for example, a tomato soup recipe may yield 4 gallons or 15 L, and a muffin recipe may yield 24 muffins.

Yield can also refer to the amount of usable product after it has been processed peeled, cooked, butchered, etc. For example, you may be preparing a recipe for carrot soup. The recipe requires 2 lbs or 1 kg of carrots, which you purchase. However, once you have peeled them and removed the tops and tips, you may only have 1.

In order to do accurate costing, yield testing must be carried out on all ingredients and recipes. When looking at yields, you must always consider the losses and waste involved in preparation and cooking. There is always a dollar value that is attached to vegetable peel, meat and fish trim, and packaging like brines and syrups.

Any waste or loss has been paid for and is still money that has been spent. This cost must always be included in the menu price. Bones from meat and fish can be turned into stocks.

Trimmings from vegetables can be added to those stocks or if there is enough, made into soup. All products must be measured and yield tested before costing a menu. Ideally, every item on a menu should be yield tested before being processed.

Most big establishments will have this information on file, and there are many books that can also be used as a reference for yields, such as The Book of Yields: Accuracy in Food Costing and Purchasing.

This is your raw weight or as purchased AP weight. Process your product accordingly, measure and record the waste or trim weight.

Subtract the amount of trim weight from the AP weight and you will have what is referred to as your processed or edible product EP weight. Get your yield percentage by converting the edible product weight into a percentage. Yield percentage is important because it tells you several things: how much usable product you will have after processing; how much raw product to actually order, and the actual cost of the product per dollar spent.

Once you have your yield percentage, you can translate this information into monetary units. Considering the losses incurred from trimmings and waste, your actual cost for your processed ingredient has gone up from what you originally paid, which was your raw cost or AP cost.

These calculations will provide you with your processed cost or EP cost. Obtain your factor. This factor converts all your calculations into percentages. If we plan to serve a 5 oz. portion, then we can calculate the edible portion cost per ounce. then multiple by 5 oz.

There could be a considerable difference in costs between the raw product and the processed product, which is why it is important to go through all these steps.

Once the EP cost is determined, the menu price can be set. This involves listing all the ingredients required to make a dish and working out the amount that goes into each serving. While this may sound straightforward, recipe costing can become a bit complicated because most food items are sold by the container or by the pound.

A small decrease in the cost of your ingredients or increase, for that matter can massively alter your profit margins. This can make you think twice before opting for the fancy imported French cheese instead of the local squeaky cheese curds.

Being aware of the cost of your recipe can also help you make more informed business decisions about what suppliers you work with and how much you order.

Use this free Excel spreadsheet to simplify the ordering process and improve inventory control. Though it sounds complicated, knowing how to cost out a recipe is surprisingly simple. You just need to start with the following steps:. First, you should list out all of the ingredients involved in creating the recipe you wish to cost out.

Then, list out the cost of every ingredient in the format it came in. Next to the price of each ingredient, put down the number of servings per jar, or the number of pounds you have of that ingredient.

For example, you might have 10 pickles in the jar, so you would put the number 10 down. If you need two pounds of beef, put down the number two next to the price of the beef. After that, you calculate the price per item e.

price per pickle and price per pound e. price of one pound of beef by dividing the price of the packet by the number of units. Then, multiply the price per item by the number of items in your recipe, and the price per pound by the number of pounds in your recipe.

Tell us a little more about yourself so we can put you with the right people. Let us know if you want to schedule a tour or if you have questions. info chefcollective. Email info chefcollective. Estimated daily orders. We'll reach out shortly so we can understand your business and needs better.

All Rights Reserved. High up on that list is recipe costing. To do this, you must determine every ingredient and exactly how much of that ingredient is needed to make one portion of that particular dish. Your restaurant would go out of business pretty quickly!

Keep in mind that the goal of this process is to determine how much it costs to produce one serving of a dish—meaning the cost of the actual amount of food you serve for every order of that specific item.

Ready to get started? Completely break down the recipe!