Ingredient Costing

Ingredient cost = ingredient amount x purchase price per unit

Portion Costing

Portion cost = sum of amount costs / recipe yield (number of portions)
Total portion cost = portion cost + additional costs
Portion cost = Menu Price / Food Cost %

Menu Price

Menu price = total portion cost / food cost %

Food Cost Percentage

Food Cost % = (Portion Cost / Menu Price) x 100

Procedure for Calculating Recipe Costs

* Calculate extensions for all ingredients.
* Add all ingredient costs to find the total recipe cost
* Divide by the recipe yield (number of portions) to get the cost of one portion.

example:

Portion Cost = $11.01 / 5 portions = $2.20 / portion

NOTE: before we can actually calculate Menu Prices or Food Cost Percentages, we will need to add the cost of any additional foods served such as French fries, vegetables, buns & butter, garnishes, etc.

Edible Portion Price

Formula

Yield% = (EP / AP) x 100%

example #1

A striploin weighs 5.2 kg AP and after trimming weights 4.6 kg (EP). Calculate the Yield percentage.

* Y% = (EP / AP) x 100%
Y% = (4.6 / 5.2) x 100%
Y% = .885 x 100%
Y% = 88.5%

example #2

The striploin in example #1 costs $11.95 / kg to purchase. What is the cost per kilogram of the trimmed striploin?

There are 2 methods to find this answer:

a) Using the figures for the striploin we have

* 5.2 kg x $11.95 / kg = $62.14

so the striploin cost us $62.14 to purchase.
The amount of useable striploin is 4.6 kg

$62.14 / 4.6 kg = $13.51 kg EP.

# b) We don't want to do a test every time the price changes. Since we know the yield percentage is 88.5%, we can use this.

* $11.95 / 88.5% = $13.51 / kg

example #3

We want to serve 85 people steak sandwiches weighing 170 grams each. How much striploin do we need?

a) Calculate the total amount of trimmed striploin (EP weight) required:

* 85 portions x 170 grams / portion = 14.45 kilograms minimum weight required.

# b) the EP weight will be 88.5% of the AP weight (using our yield percentage)

* 14.45 kg / 88.5% = 16.33 kg
If we have less than 16.33 kg of striploin, we won't have enough.

Cost per Portion

Portion Cost (PC) = Menu Price (MP) x Food Cost Percentage (FC%)

PC = MP x FC%

example

The daily special sells for $5.95 and we want to have a 36% Food Cost. How much does the special cost to produce?

* PC = MP x FC%
* PC = $5.95 x 36%
PC = $5.95 x .36
PC = $2.14

As Purchased Price

The amount of the ingredient purchased times the purchase price = the cost of the product.

example

Chicken: we purchased 15 kg of chicken at a price of $2.75 per kg.

* 15 kg x $2.75 per kg = $41.25 total cost of the chicken.