What is Recipe Costing?
Recipe costing works out the cost of one portion or batch of a dish by adding up the cost of every ingredient in the quantity the recipe uses.
Updated
Meaning
English
Recipe costing works out the cost of one portion or batch of a dish by adding up the cost of every ingredient in the quantity the recipe uses.
Roman Urdu
Recipe costing ek plate ya batch ki cost nikalti hai, recipe me istemal hone wale har ingredient ki miqdar aur qeemat jod kar.
Also called plate costing, recipe cost, dish costing.
Example
A cafe costs its club sandwich: bread 45 rupees, chicken 120, egg 30, cheese 40, vegetables and sauce 25, fries 55, packing 15. The plate costs 330 rupees, so a menu price of 850 leaves a food cost of about 39%.
How it works
Every dish needs a written recipe with exact quantities, in the same units the shop buys in, converted where needed (a 5 kg bag of rice, used 250 g per plate). Include everything that goes on the plate, including oil, garnish and packing for takeaway. Then multiply by current purchase prices.
Recipe costing does three jobs: it sets menu prices, it shows which dishes earn the most per plate, and it lets the owner compare what ingredients should have been used with what was actually used. Recipes also keep taste consistent when cooks change.
In Nafaa
In Nafaa, recipes are set on the shared product editor and their cost follows purchase rates. The recipes page shows plate cost, how many plates the branch's stock still covers, what runs out first, and raw material used by sales against purchases and stock.
Related terms
- Food Cost Percentage
Food cost percentage is the cost of the ingredients in a dish or in all food sold, divided by the selling price or food sales.
- BOM (Bill of Materials)
A bill of materials is the list of raw materials and quantities needed to make one unit of a product, used to plan production and work out its cost.
- Menu Engineering
Menu engineering is the review of each dish by how often it sells and how much profit it earns, to decide which dishes to promote, reprice, change or remove.