In the food business, keeping track of food costs is essential to success. But what exactly are food costs, and how do you keep track of them?
In this comprehensive guide, we will discuss five things to know about food costing. We'll identify each thing and describe it in detail. So whether you're just starting out in the food business or you're looking for ways to improve your tracking methods, read on for everything you need to know about food costing!
What is Food Costing?
At its most basic, food costing is the process of tracking the cost of all the ingredients used to make a dish, as well as the labor and overhead costs associated with making it. By knowing your food cost for each dish, you can price menu items accurately and ensure that your restaurant is profitable. There are a few different methods of food costing and an important practice is recipe costing.
To cost a recipe, you will first need to gather a few things: the list of ingredients for each dish on your menu, the price you paid for each ingredient, and the portion size of each ingredient. Once you have this information, you can start to calculate your food cost.
With meez, you can integrate your purchasing or scan your invoices and sync ingredients with prices from your vendors for real-time tracking of food cost. Use the food cost calculator to cost any recipe by profit margin, portion size, sell price and food cost percentage.
There Are Many Benefits to Food Costing
There are many benefits to food costing, and perhaps the most important is that it can help you run a more profitable restaurant. By knowing your food cost for each dish, you can price menu items accurately and ensure that your restaurant is making enough money to cover all its expenses.
In addition to helping you run a more profitable business, food costing can also help you make better decisions about your menu. For example, if you find that a particular dish has a high food cost, you may decide to either raise its price, adjust ingredients or remove it from the menu.
Food Costs Vary by Season
One of the most important things to keep in mind when tracking your food costs is that they will vary throughout the year. Seasonal ingredients will be more expensive during certain times of the year, while others will be less expensive. For example, tomatoes are typically cheaper in the summer when they are in season, while apples are usually more expensive in the winter. Supply chain trends and shortages also affect prices. By being aware of these fluctuations, you can adjust your menu accordingly and avoid any surprises when balancing your books.
Calculate Food Costs Regularly
You should calculate your food costs regularly, as ingredient prices can fluctuate depending on the time of year and the market. Chefs have traditionally evaluated food once a month. With meez, you can look any time, such as when you run out of an ingredient, a delivery is late or when you meet with a potential vendor and want to see how their prices would affect your bottom line.
Food Costing Doesn't Tell the Full Story
While food costs are certainly the most important thing to track when it comes to your business, they are not the only costs you need to keep an eye on. In addition to food costs, you also need to track labor costs, overhead costs, and other expenses associated with running your restaurant. By tracking all of these costs, you will get a clear picture of your business' finances and be able to make informed decisions about where to cut costs and how to price your menu items.
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