Ingredient cost = ingredient amount x purchase price per unit
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 = 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
Portion Cost = $11.01 / 5 portions = $2.20 / portion
NOTE: before we can actually calculate Menu Prices or Food
we will need to add the cost of any additional foods served such as
vegetables, buns & butter, garnishes, etc.
Edible Portion Price
Yield% = (EP / AP) x 100%
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%
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
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
# 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%
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.
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.