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.