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The Evolution of a Dish:

Frequently Asked Questions

What is food costing?

Food costing is calculating the cost of ingredients required to make a dish. It does not include things like labor costs and overhead. It is the raw data pertaining to the cost of each ingredient used to assemble and create each dish for the customer. Read more.

What is food cost control?

Food cost control is the ongoing habit of measuring food-related costs in a restaurant business. Specifically, understanding and (where feasible) reducing your direct food (ingredient) and beverage costs at the restaurant. Food costing allows you to reduce business costs and increase profits.

How do you calculate food cost?

There are many different formulas that can be used to calculate food cost. At its most basic level, plate cost involves dividing the cost of every single ingredient by the menu price and expressing it as a percentage. This basic equation, alongside key alternatives, will help you understand and manage food cost.

What are the benefits of food costing?

Food costing has many benefits. The most important is that it allows you to understand, and thus control, the effect food spending has on your budget. It also helps you control overall costs thus giving you control of your bottom line and helping you build a profitable business.

What is the purpose of food costing?

Food costing allows you to determine the food cost of every dish. This helps with budgeting and menu pricing, amongst other things. Food costing has a direct impact on restaurant profitability. Combined with other factors, like overhead and labor, food costing helps you control restaurant costs and maintain a profitable bottom line.

How does food costing for a restaurant work?

Food costing starts with thorough and accurate accounting of all ingredients, no matter how small, used in a dish. From there, each dish will be compared with the cost of its recipe components to arrive at the plate cost. In turn, the period cost (the cost of all plates over a given time) can be calculated.

What is food costing software?

Food costing software, like meez, automates the critical process of food costing for restaurants. Often it will help you build a comprehensive database of recipes and current ingredient costs. meez does a range of calculations for you to assist in understanding expenses and meeting cost targets to stay profitable. Once you have your ingredients costs in meez, the food cost calculator shows you the sell price, profit margin, portion size and food cost percentage.

How can you reduce food cost for a restaurant?

There are many ways to reduce food costs for a restaurant. This could be anything from changing menu items to seeking better suppliers. However, you will not know what needs to be done, or where you should best focus attention, without an accurate food costing, which should be your first step.

Sign up for free to quickly calculate food cost and recipe costs with meez.

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