RESTAURANTOPS PRO / RECIPE COSTING
A practical guide to restaurant recipe costing.
To cost a recipe, find the cost of each ingredient amount, add those costs for the full batch, then divide by the servings the batch makes. That gives you a consistent cost per serving to use when reviewing a menu item.
Calculate each ingredient cost
Multiply the amount used by the cost of the same unit. If a recipe uses 2 pounds of potatoes and potatoes cost $1.50 per pound, the potatoes cost $3.00 in that recipe. Match the units before multiplying: ounces with cost per ounce, pounds with cost per pound. Convert first if the recipe and purchase price use different units.
Amount used × cost per matching unit = ingredient cost
Add costs for the full recipe
Repeat that calculation for every ingredient, then add the ingredient costs together. The result is the cost to make the full batch of the recipe.
Ingredient 1 + ingredient 2 + … = full recipe cost
Set the recipe yield
Recipe yield is the number of servings the entire batch makes. Use the number of portions you actually plan to serve from that batch, rather than the number of ingredients or preparation steps.
Divide for cost per serving
Divide the full recipe cost by its yield. This gives you the ingredient cost for one serving.
Full recipe cost ÷ servings made = cost per serving
PUT THE FORMULA TO WORK
Start with your own recipe.
Enter ingredients, matching unit costs, and servings in the blank calculator.