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.


  • Y.K.Sharma said on August 31, 2011
    Hi, plz.give cost calculation example for any indian recipe as i am going to open a indian restaurant in Sydney
  • vinith desai said on September 14, 2011
    I am planning to open a fast food in mumbai india would like to remove cost and profit for eg pav bhaji.thanks
  • Sanjay Sharma said on October 30, 2011
    I want to open a restaurant in Delhi which is specially for Dosa. Kindly suggest with minimum input cost.
  • james bhengra said on December 14, 2011
    I want to know more and in detail about the recipe cost calculator for my new restaurant in New delhi, India.
  • Dipendra man singh said on April 15, 2012
    Actually i am going to open one multi cuisine restaurant in kathmandu. so, i need a idea about how to cost in recipe and even in buffet party. i am waiting ur reply.
  • Gautom Ghosh said on May 28, 2012
    I am planning to open a fast food joint having juice corner, smoked chicken, ice cream etc. Please suggest how should i calculate the cost and profit. Give me some innovative idea . Regards
  • AHMAD AZIZI said on August 18, 2012
    I am planning to open a very small restaurant with 3 tables. The menu will only have breakfast sandwiches, waffles and only one type of sweet and for lunch different pastas. I am planning to open this restaurant in Astoria, NY. Please suggest how should i calculate the cost and profit. Thank you
  • Ashok Sunda said on September 6, 2012
    How to calculate the cost and profit.
  • MATHANA said on April 1, 2013
    pls teach how to calculate cost and profit an i planed to start restaurant soon
  • ajay said on April 9, 2013
    New delhi, going to open a indian restaurant, please provide me recipe cost and other details to open a restaurant ,please send it as soon as possible,thanks,
  • P Kapoor said on May 7, 2013
    Hi, Would you please email me the recipe cost for a small Chinese Food restaurant. I am planning to open a Chinese food small restaurant in DELHI. Thanks.
  • venu reddy said on January 6, 2014
    i am from hyderabad andhra pradesh india i am planning to open only dosa (all types) centre in hyderabad hence i request to you please send recipe cost to my email address. thanking you
  • Tushar beginner adviser said on October 1, 2014
    We provide complete 'Back of the House (BOH)' solutions. Right from designing the menu & kitchen, recipe costing, menu mix analysis, food cost report as well as standardizing BOH systems for off-site operations. If the above is an answer to your needs, then you can reach me on Regards, Tushar || Consultant

  • Khaled said on June 19, 2016
    i am from Chennai Tamilnadu india i am planning to open only Idli and dosa (all types) centre in Chennai hence i request to you please send recipe cost to my email address. thanking you -


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