Everything You Need to Know About Recipe and Menu Costing

Failing to Do Recipe and Menu Costing effectively can be a huge drawback for a restaurant business. Well, recipe costing is basically the process that restaurant business operators use for calculating the total cost of a given recipe that’s offered on the menu. This complete calculation helps in identifying the cost that a restaurant incurs to cook and serve every dish that is placed on the menu. While calculating the recipe and menu cost, it is essential to consider everything, from the ingredients to the time taken to prep and cook. And as a restaurant owner, if you are not charging enough money for a dish to make up for what it costs you to prepare, then it will be a negative point for your business.

Reasons why you need recipe costing:

  • It basically helps you in knowing how much cost is incurred in preparing a dish
  • It further gives you a clearer view of how much you can earn per dish
  • Moreover, it helps in deciding the selling price of the items on the menu
  • When you are up to date with the cost and see that you are going beyond your target cost
  • percent, then you can come up with certain plans to reduce the cost.

  • You get insight into the dish’s profit margin that you can use to promote the high-profit items
  • through suggestive selling and promotions.

Procedure to follow for Recipe and Menu Costing

    Calculating the recipe cost and menu cost involves certain aspects. Let us have a look:

  • Write down the ingredients and their quantities
  • Filling in prices for the ingredients
  • Calculating the prices of the partial items
  • Adding everything
  • Extracting the cost of each serving
  • Estimate costs for herbs and spices
  • Other costs like gas, water, and electricity
  • Now price it according to the ideal menu price i.e., Cost per serving/Ideal food cost percentage
  • Optimizing the restaurant profits using recipe costing .

Well, even though you implement all the steps above, it might not be possible for you to come up with the best pricing until you have professional guidance. The reason is that recipe costing is a technique that you need to master, in order to avoid running into a loss.

However, if you are in search of a team of professionals who can help you with the recipe costs, then feel free to reach out to the ERC team at 1-647-209-4153, or you can also visit our website i.e., https://erestaurantconsulting.ca/ for more details and our seasoned experts will ensure to help you with all your restaurant business worries.