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The Advantages of Food Costing

by
meez
·
Published on
April 1, 2020
·
3
min read

Food Costing: An Overview

Food costs are a significant expense for any restaurant, and managing them will be key to your success. Without a clear idea of what you’re spending on food, you can’t correctly price your dishes, assess your prime costs, or make a business plan for profit.

While we were once confined to manually doing food costing, most modern restaurants will use food costing software like meez to make the process easier. What’s the advantage to food costing, however? Let’s take a look.

The Advantages of Food Costing

What is food costing? The simplest explanation of food costing is assessing what you spend on ingredients. The practice is used to compare what you make on a dish with what it cost to put it on the table. Once you establish your ingredient cost benchmark, you will use it in combination with other key figures, like your labor cost, overheads, and so on, to establish how your business is doing. What are the benefits of food costing? Let’s take a look.

Advantage #1 - Control

The greatest importance of food costing is, without question, the fact it puts you in control of your business. The notion of operating blindly is not one that can be sustained in the restaurant industry. If you don’t know what you’re spending, you can’t make adjustments that help you keep customers happy and your costs under control.

Advantage #2 - Ease of Quoting

How do you price a new dish or provide a prix fixe menu for a catered event? How do you know when to raise prices on your menu? How do you decide if a dish isn’t viable on your menu? Food costing will help you create accurate quotes. With the simplicity offered by our food costing app, you will be able to do so quickly, too.

Advantage #3 - Sensible Policy Decisions

Likewise, how do you know if your restaurant is making a profit or not? How do you create a business plan or budget for the year? You start by assessing where you are, right? With a clear look at existing costs, you can decide where to save money, what’s working correctly, and how to achieve your goals. And it starts with smart food costing.

Advantage #4 - Supplier Competitiveness

There are a lot of things that go into selecting your suppliers. Quality, ease of interacting with them, and of course, the price they charge. Knowing how the money you spend on each ingredient translates to the dish on the table is critical if you are going to stay on top of the supplier relationship. Otherwise, you may blindly pay what’s asked without ever exploring profitability or value.

Advantage #5 - Less Wastage

Having strong control over what does hit the customer’s plate will also help you take control of what doesn’t. Our food costing software goes beyond the mere food costing calculator. It also illuminates things such as what ingredients you use the most, what you’re ordering and in what quantities, and how ingredients work with your recipes. You can even get a strong overall picture of areas where your menu lacks, or menu items that aren’t selling but are being prepped. This helps you keep tighter control overall and cut down on wastage.

An Introduction to meez

Now you know why food costing is important, don’t you think it’s time you took back control? Meez is proud to offer professional chefs a full-service recipe tool for restaurants, caterers, test kitchens, meal kit companies — any culinary operation — that will make staying on top of food costing a breeze. Meez will even help you update your staff on recipe changes, track nutrition data and allergens, and of course, cost the plate effortlessly.

Want to learn more?

Book a live demo with our team or try it yourself for free.