How to Cost a Recipe
Cooking is one thing that is surely enjoyed by many people. This is the main reason why there are a lot of restaurants no matter where you go. This is because most people do not just want to earn money but they simply find pleasure in cooking different delicacies.
But for your restaurant to be a big hit, there is a need for you to know how to cost a recipe so that you will earn the most out of the recipe that you have created.
Costing a recipe is something that is very essential for every restaurant owner. This will be the basis of the business’s survival as well as the profitability of it. This is why when you calculate the cost of the recipe, there are things that you must know first so that you will be sure that your restaurant will be giving you the income that you expect to have.
Why Calculate the Recipe Cost?
If you are really serious to get profit out of your restaurant, calculating the cost of your menu is a big must. Calculating the costs of your restaurant’s dishes will aid you in achieving your goals in sales as well as your target costs. An effective control on the cost of the food will let the managers establish the right sale prices, the target gross profit for the menu’s dishes, establish the sales of the day’s dish and above all, identify which of the dishes are giving the desired profit and which are not.
What Managers Must Know
The managers must know the profit margins that they have for every food item that they are sell. This is something that will let the business to charge the right price as well as hit the specific target of the food costs.
The Recipe Cost Calculator
The recipe cost calculator is a program which is designed to help owners to prepare the right cost of all dishes that is being offered in the menu of your restaurant.
You can calculate the dish’s cost first before you update the spreadsheet together with the dish’s photo as well as a short description or the recipe of the dish itself, in order for you to come up with recipe specification sheets which you can print and tuck in your folder of food specifications. This is also a program that you can utilize in calculating your recipe’s profitability, the cost margin as well as the profit for one dish so that your cost targets will be achieved.
The Edible Potion Cost
It is said that the edible potion cost is something that you need to calculate. For example, if a dish will have 4 ounce of asparagus, your recipe’s cost must also include the root end’s cost even if you have cut it off already. For you to do it successfully, you have to make use of each item’s yield percentage.