Food Cost

Food Cost Percentages

Determines if menu price and costs for each item are in line

Can be figured two ways Percentage = food cost

menu price

Menu price = food cost

percentage

Portion Cost

Raw food cost Total cost of all ingredients in a recipe divided

by the number of portions served. Portion cost = cost of ingredients

Number of portions

Procedure for calculating portion cost

1. List ingredients and quantities of recipe as prepared.

2. Convert the recipe quantities to AP quantities.3. Determine the price of each ingredient (from

invoices, price lists, etc.) The units in this step and in step 2 must be the same in order for you to do the calculation.

4. Calculate the total cost of each ingredient by multiplying the price per unit by the number of units needed.

5. Add the ingredient costs to get the total recipe cost.6. Divide the total cost by the number of portions

served to get the cost per portion.

Invoices

How to read an invoice

Know how the product came and how it was priced.

Example: 4-5# Cheddar cheese @ $41.65 This means all 4 bags of cheese cost a total of

$41.65 To determine the cost of 1-5# bag you must

divide $41.65/4 = $10.41. Therefore, 1 bag costs $10.41.

To determine the cost of 1# of cheese you must divide $10.41/5 = $2.08 Therefore, 1# of cheese costs $2.08

How to cost out recipes

Determine the exact amount of each ingredient used.

Determine the cost of each ingredient according to the unit you are using.

Example: you need 3 oz of cheddar cheese in the recipe. 1# of cheese costs $2.08. To find the cost of 1

ounce you must divide $2.08/16 = $.13 You need 3 oz. You must multiply $.13 x 3 =

$.39

Raw Food Cost

After you determine the cost of each item in the recipe, you simply add them all up to determine the total cost.

This is known as the raw food cost.

Determine the menu price

Use the formula : Menu price = food cost/percentage

Example: The raw food cost for chicken salad is $2.75. You want to run a 35% food cost.

$2.75 divided by .35 = $7.86 You would need to sell the chicken salad for

$7.86 to equal a 35% food cost.

Determine the food cost percentage

Use the formula: Percentage = food cost/menu price,

Example: Grilled cheese costs $.45. You want to sell it at $1.75 on the menu.

$.45 divided by $1.75 = .257 or a 26% food cost.

Determining overall food cost

Ideally a 35% food cost is GREAT! However, it is unrealistic for every item! Determine the food cost percentage for all

items on your menu and take the average. This is your overall food cost percent. This is usually done on a month to month

basis.

1. Braised Swiss Steak Yield: 50 servings

Ingredients Amount Mkt. price Extension cost  

6 oz round steak 50 ea 1.45/lb $12.75

onions 12 oz .18/lb $.12

garlic 1 oz 1.52/lb $.10

tomato puree 1 pt 1.20/gal $.15

brown stock 9 qt .90/gal $2.07

salad oil 3 cups .70/qt $.18

bread flour 12 oz .14/lb $.11

salt 3/4 oz .16/lb $.01

Total Cost: $29.93

Cost per serving: $.60

2.Salsbury Steak Yield: 50 servings

Ingredients Amount Mkt. price Extension cost

Beef chuck 14 lb 1.15/lb $16.10

Onion 3 lb .15/lb $.45

garlic 1/2 oz 1.52/lb $.05

Salad oil 1/2 cup .70/qt $.09

Bread cubes 2 lb .36/lb $.72

Milk 1 1/2 pt 1.65/gal $.32

Whole eggs 8 .84/doz $.56

Pepper 1/4 oz 1.18/lb $.02

Salt 1 oz .16/lb $.01

Total cost: $18.32

Cost per serving: $.37