## Food Costing

### Food Costing Template for Restaurant Operators

#### Step 1: List All Ingredients for One Dish

1. Ingredient Name: What you use in the recipe (e.g., chicken breast, olive oil).
2. Purchase Quantity: The amount you buy (e.g., 1 lb, 1 gallon).
3. Purchase Price: How much you pay for the purchase quantity.
4. Recipe Quantity: How much of the ingredient you use in one dish (e.g., 2 oz, 1 tsp).
5. Unit of Measurement: The measurement for your recipe quantity (e.g., oz, tsp).
Ingredient Name Purchase Quantity Purchase Price Recipe Quantity Unit of Measurement
Example: Chicken 1 lb \$5.00 4 oz oz

#### Step 2: Calculate the Cost of Each Ingredient Per Dish

1. Cost Per Unit: Divide the purchase price by the purchase quantity to find the cost per smallest unit (e.g., per oz, per tsp).
2. Ingredient Cost Per Dish: Multiply the cost per unit by the recipe quantity used in the dish.
Ingredient Name Cost Per Unit Ingredient Cost Per Dish
Example: Chicken \$1.25/oz \$5.00

#### Step 3: Calculate Total Cost of the Dish

• Total Cost: Add all the ‘Ingredient Cost Per Dish’ amounts.
mathematical equation

`Total Dish Cost = Sum of all Ingredient Costs Per Dish`

• Example: If your dish uses chicken, rice, and vegetables, and their costs per dish are \$5.00, \$1.00, and \$0.50 respectively, then:
Batch

`Total Dish Cost = \$5.00 (chicken) + \$1.00 (rice) + \$0.50 (vegetables) = \$6.50`

#### Step 4: Determine Your Selling Price

• To make a profit, you need to sell your dish for more than it costs to make. A common approach is to aim for a food cost percentage of 30% to 35%.

`Selling Price = Total Dish Cost / Desired Food Cost Percentage`

Example: If your total dish cost is \$6.50 and you aim for a 30% food cost percentage:

`Selling Price = \$6.50 / 0.30 = \$21.67`

• Round up or adjust to make sense for your customers and market.

This template guides you through calculating the cost of making a dish, helping you price it profitably while keeping the math straightforward. Always remember to update the costs regularly to reflect changes in ingredient prices!