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Food Cost Equation:
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Food Cost Per Plate represents the total cost of all ingredients used to prepare a single serving of a dish. It's a fundamental calculation in restaurant management and food service operations to determine pricing and profitability.
The calculator uses the simple summation formula:
Where:
Explanation: The calculation simply adds up the cost of each individual ingredient used in one serving of the dish to determine the total food cost.
Details: Accurate food cost calculation is essential for menu pricing, cost control, profitability analysis, and overall restaurant financial management. It helps determine appropriate selling prices to maintain desired profit margins.
Tips: Enter the cost of each ingredient in dollars. You can add up to three ingredients in this calculator. For dishes with more ingredients, simply add their costs mentally or use additional calculation methods.
Q1: What costs should be included in ingredient costs?
A: Include the actual purchase price of each raw ingredient used in one serving, accounting for waste, trimming, and preparation losses.
Q2: How often should food costs be calculated?
A: Food costs should be calculated whenever ingredient prices change significantly, when new menu items are introduced, or at least quarterly to account for seasonal price fluctuations.
Q3: What is a good food cost percentage?
A: Most restaurants aim for 28-35% food cost, meaning the ingredient cost should be about 28-35% of the menu price, though this varies by establishment type.
Q4: Should labor costs be included in food cost?
A: No, food cost specifically refers to the cost of ingredients only. Labor, overhead, and other expenses are separate calculations.
Q5: How do I account for ingredients used in small quantities?
A: For items like spices, herbs, or condiments, calculate the cost per unit (teaspoon, pinch, etc.) and then determine the cost for the amount used in one serving.