OPERATIONS GUIDE

Menu ingredient costing

Calculate ingredient cost from purchase units and portion sizes.

Edit in Excel or another spreadsheet app. Enter your actual figures in the blank English template.

1. 01

   Align purchase units

   Record purchase price and package quantity in consistent units. Apply a consistent policy for including tax and delivery.

2. 02

   Measure usable yield

   Measure trimming and cooking losses. Divide purchase price by usable quantity to obtain unit cost. Mark estimated yield until it is measured.

3. 03

   Add portion costs

   For each ingredient multiply unit cost by portion quantity, then add the results. Include sauces, garnishes and packaging as separate rows.

4. 04

   Compare with selling price

   Ingredient cost divided by selling price, multiplied by 100, is the ingredient-cost percentage. It does not automatically include labour, rent or payment fees.

5. 05

   Refresh supplier changes

   Recalculate when purchase price or package size changes. Keep dated records to support profitability reviews.