What Is a Recipe Cost Calculator

 Are you looking for that magical recipe cost calculator? Most restaurants don't use any kind of recipe cost calculator and have a higher food cost and lower profits because they don't know what their menu items cost to make. Watch this video to learn the magic of a recipe cost calculator and how to cost out your recipes. 

When it comes to recipe costing cards, number one, you've got to get every item that you're going to buy. Any product that you buy from any distributors - small or large. Break each product down to find out what those costs are. If you buy it by the pound, what is the ounce cost? The other part of that is how much of that is usable. Something called the yield test. You take the ending weight divided by the beginning weight. Take Romaine lettuce as an example. You start with a whole head, but you trim some parts off. There is a beginning weight and an ending weight. Find out the actual cost per ounce per each whatever it may be. If I count that something costs me 15 cents an ounce, and I have two ounces in a recipe, I know it's 30 cents.

The next thing is to make sure you start off what we call our batch recipes these are any components used in a recipe. Anything you manufacturer yourself. That might be diced onions or cut celery or it could be soups, side dishes, sauces desserts, anything you manufacture in your restaurant. We start with this other product we buy. We make this with it. So we need to know the value because those are components or ingredients that go into things that you actually sell to your guest.

Now we want to start to write down all of our recipes. A tip: do it as you prepare them whether a batch recipe or an item that's going to come out of your kitchen stop. Weigh it. Write it down, get the exact ounces, the exact number of each and quantities for each of these items. Write them down like a grocery list and the next thing you know you put all your costs together total it up and then decide what you're going to sell it for.

Do this for every single item.

There are three things you need to think about:

Core values: You must know your core values because that has everything to do with what quality product you purchase. High quality offerings or value-driven? Doesn't matter, just know what your business offers and customers expect in return.

A passion for hospitality: it's not just about the food, it's about the memories you help create for people. and persistence when it comes to your recipes.

Persistence: you must be persistent in everything you do. Every dish goes out the way you documented, every ingredient is used the same way every single time, hot food is hot, cold food cold.
That way every dish goes out the same way every single time, and we can predict your cost.

You wanna make money in this business? Make sure you tackle do your recipe cost calculator and develop your recipe costing cards.

If you would like to learn more about the importance of systems and how to run a restaurant, read our free special report, Is Your Food Distributor Screwing You? 5 Things You Can Do Now to Lower Food Cost. Download it here. Be sure to visit my YouTube channel for more helpful restaurant management video tips.