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Use our food cost calculator below to calculate your food cost, edible cost, portion cost, menu and plate costs. Watch the video to learn how to use our food cost calculator. In this video, we build out a roasted chicken brie sandwich with a side salad and a ramekin of sun-dried tomato ranch dressing. We identify each ingredient for the recipes and menu items, enter the purchasing unit and price to get the unit costs. Additionally, we use our yield to demonstrate the effects on the cost per unit and number of portions.
Understanding your costs before you open will be vital to your success. As you build your business plan, you will find it’s difficult to wrap your arms around your potential revenue and daily costs. I created software called www.recipe-costing.com to help restaurant owners cost out vendor items, portion, sub recipes, recipes, and menu items costs. In addition, there is an expense page to enter your daily, weekly, and monthly expenses. Our software will use these numbers to calculate your daily expense once you enter the number of days you’re open in a year.
How much should I charge for each menu item I sell? Great question! It depends on the cost of food and labor. Let’s not forget our other expense. Let’s take a look at our example below Mac & Cheese. This Mac & Cheese comes with a side of broccoli and apple.
I entered the following items into my software to get the plate or menu item cost. The total cost of this plate is $2.48 and I’m selling it for $7.00 in my restaurant. Typically, most restaurant owners will take cost of the plate $2.48 and multiply it by 3 to get a price. In this case, we should charge $7.44 in theory this number should cover all of our costs.
You’ll notice that under the “Added Items” I selected items from my pantry and one of items are labeled as a recipe. This recipe has a cost tied to it and I’m only using the portioned cost of my recipe. What you don’t see is that the cheese sauce recipe has a sub recipe. All these costs add up and when not considered can hurt your bottom line.
You have a lot going on before your doors open and you’ll find that there will be down times. You can spend it worrying about your restaurant opening on time or you can be proactive and begin costing out your food. In our software, it’s important you build ONE food order guide. This is all the food you plan or are using in your restaurant. The food order guide is essential and once it’s built you can use it for every vendor without having to enter it again. In some restaurant the food order guide can be well over 500 items. Who wants to enter this every time you add a new vendor?
On this page of our software you define the item and you can also get the nutrition facts for that item using our integrated USDA database. The food item name should always be used as a friendly name. A name that makes sense to you and that you can use to tie vendor item too. This way you can compare pricing on an item. Once you’ve entered all of your food items in the food order guide it’s time to create you vendors.