Recipe costing: know the real cost of every plate
Convert pack prices into usable ingredient cost, batch cost and cost per serving. Include sauces, oil, garnish and the measured portion.
Recipe costing is an ingredient cost sheet for a measured serving. Start with current invoice prices, convert pack sizes to one unit and measure edible yield. Divide a batch by the portions it actually produces. Then include every component served on the plate.
The working method
- Record ingredient, supplier price, pack size, purchased unit, usable yield and recipe quantity. Keep grams, kilograms and litres explicit.
- A 10 kg pack at €50 costs €5/kg purchased. At 80% usable yield it gives 8 kg, so usable cost is €6.25/kg. A 160 g usable portion costs €1.
- Weigh the finished batch. If it yields 40 servings, divide by 40; do not use the theoretical yield if cooking or trimming reduced it.
- Include oil, seasoning, sauce, garnish and bread. Keep labour, packaging and overhead separate so ingredient cost does not become total operating cost.
- Version the recipe and price date. Test the portion at the pass and update the sheet before changing the selling price.
A worked example
A sauce batch costs €55.20 and produces 40 measured portions. Pasta, parmesan and garnish are costed separately.
| Sauce | €55.20 ÷ 40 = €1.38 | Measured batch yield |
|---|---|---|
| Pasta | €0.28 | Per serving |
| Parmesan and garnish | €0.32 + €0.12 = €0.44 | Include both components |
| Plate cost | €1.38 + €0.28 + €0.44 = €2.10 | At €10 net selling price: 21% ingredient cost |
If the sauce only produces 32 servings, its cost rises to €1.725 and the plate to €2.445. Measure yield before diagnosing a price problem.
Keep the routine
- 1Collect prices. Use current invoices and record pack sizes. Replace list prices with the actual purchase price.
- 2Measure yield. Weigh before trimming, after trimming and after cooking. Record usable yield for each ingredient.
- 3Cost and portion. Cost the batch, count measured portions and add plate components. Specify weights and serving utensils.
- 4Update and verify. Refresh changed prices and recipes. Weigh sample servings and compare their cost with the sheet.
Frequently asked questions
FAQ
- Should I include tax?
- Use comparable figures. For a business that recovers input tax, compare ingredient cost excluding recoverable tax with net selling revenue.
- Is plate cost the same as food-cost percentage?
- No. Plate cost is a money amount. Divide it by selling price and multiply by 100 for the percentage.
- What if the batch yield varies?
- Record actual yield from several batches. Use a realistic standard and investigate repeated differences.
- Can a spreadsheet work?
- Yes. Keep unit conversions, yield, quantities, current prices, recipe version and portion count visible.
Keep reading
- Reducing kitchen food waste: measure the loss before you fix it
Use a 14-day waste log to separate spoilage, over-prep, trim and plate returns. Rank losses in euros, test a correction and measure again.
- Inventory management for restaurants: the system that keeps your margins honest
What restaurant inventory management actually covers, where losses hide, and how to build a system that catches them.
- Restaurant par levels: set stock targets that protect cash and service
Set replenishment targets from usage, delivery intervals, a measured buffer and shelf life. Order only the gap after stock and confirmed deliveries.
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