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Calculating Selling Price

Once you have calculated the recipe cost, the selling price per portion can be calculated using the following formula: Example: We have determined that the cost per portion is $3.57, …

Wrap up of the course

Costing, something that chefs and managers dread the most but as you can see, is a necessity to ensure a profitable business. Understanding your costs is one of the most …

Exercise: Calculate Selling Price

Using the recipe costing that you did in step 2.8, calculate the selling price of the dish using a food cost percentage of 28%. You can download the answer here

Exercise: Calculate Food Cost

Using the recipe costing sheet below, do the following: Calculate the cost of the recipe Calculate the cost of a portion, remember each portion takes 2 Crab Patties. You will …

Calculating Basic Food Costs

Introduction Controlling food costs is imperative in the restaurant business. If costs are not controlled successfully, no matter how good your food may be or how many loyal customers you …

Basic Elements of Costs

The chef or business owner is responsible to ensure that expenses are met by income, irrespective of whether the operation is a profit orientated foodservice unit or not. Several elements …

Labour Cost

There are many terms associated with labour costs: Labour Expense includes salaries and wages, but it consists of other labour-related costs as well. Payroll refers to the gross pay received …

Indicators

Indicators show the progress of the restaurant business’s goal. The main indicators that are selected by a business to watch carefully as an indicator of performance are called Key Performance …

Financial Terms

Forecasting and financial budgeting have a lot in common. A great deal of guesswork, backed up with facts, experience and a sense of history, are all combined to try and …

Measuring and Portioning Equipment

Recipe ingredients must be measured precisely, especially in the bakery, and foods should be measured when served to control portion size and cost. The devices used to measure and portion …

Overheads and Calculating the Cost of Overheads

Profitability essentially means any money that you are bringing in after all your expenses have been paid. Obviously successful businesses make a profit. If a business is not profitable, the …

The Main Costs in Catering

In the foodservice industry, the term cost control has come to mean control over all items of income and expenses concerned with the functioning of any foodservice operation. Applying the …

Guidelines for Portion Control

These guidelines should always be adhered to when portioning: The correct quantity and quality of commodities should be bought. For example, if it is calculated that 100g of carrots should …

Physical Inventory Control and Food Cost Percentage

Understanding how your inventory and food cost are related is exceptionally important. Today most large operations have the luxury of technology however smaller operations and those that have not adopted …

Portion Control

It is the Chef’s responsibility to instruct their staff on the correct use of any equipment in portion control and explain why it is necessary to adhere to the standard …