Initiation to Cooking

Practices
 Food Cost

-What is food cost ?

-Why do we need food cost ?
-How we determine food cost ?
-What affects food cost?
 Food Cost

Food cost is the ratio of a restaurant's cost of

ingredients (food inventory) and the revenue that
those ingredients generate when the menu items
are sold (food sales). Food cost is almost always
expressed as a percentage known as food
cost percentage.
 Food Cost

-It determines your profitability

-Lower food cost - Higher profits
-Properly price your Menu
-Optimize your Menu
 Food Cost
There are two types of food cost
1.Plate cost
2.Period cost
 Food Cost
Plate cost, also known as recipe or portion cost, is
the cost of a single menu item.
Item plate cost = Price X Volume need / Volume of
the product
Plate cost=Sum of all item costs
 Food Cost
Ex:
Price of olive oil - 8€
Volume need - 20ml
Volume of the product -1l (1000ml)
Item plate cost= 8 X 20/1000= 0,16
Recipe detail and cost card Seafood plate 1 portion 320g

Ingredients Quantity Unit Price Cost for plate

Lobster 50g Kg 67€
Shrimps 50g Kg 18€
Clams 50g Kg 11€
Calamari 50g Kg 16€
White wine 15ml L 3,6€
Olive oil 10ml L 9,8€
Coconut milk 30ml 330ml 4,2€
Rice 50g Kg 2,1€
Ginger 10g Kg 2,6€
Garlic 3g Kg 3,8€
Parsley 3g 100g 2€
Basil 3g 100g 2€
Salt 1g Kg 0,8€
Total
Recipe detail and cost card Seafood plate 1 portion 320g

Ingredients Quantity Unit Price Cost for plate

Lobster 50g Kg 67€ 3,35€
Shrimps 50g Kg 18€ 0,90€
Clams 50g Kg 11€ 0,55€
Calamari 50g Kg 16€ 0,80€
White wine 15ml L 3,6€ 0,054€
Olive oil 10ml L 9,8€ 0,098€
Coconut milk 30ml 330ml 4,2€ 0,38€
Rice 50g Kg 2,1€ 0,105€
Ginger 10g Kg 2,6€ 0,026€
Garlic 3g Kg 3,8€ 0,011€
Parsley 3g 100g 2€ 0,06€
Basil 3g 100g 2€ 0,06€
Salt 1g Kg 0,8€ 0,0008€
Total 6,39
 Food Cost

Period Cost is calculation of actual food cost, for

some period of time
To calculate actual food cost : Food Cost % =
(Beginning Inventory + Purchases – Ending
Inventory) ÷ Food Sales
 Food Cost
This formula can be used to determine period cost for
any category in your restaurant!
-Food cost
-Beer bottle cost
-Beer draft cost
-Wine bottle cost
-Wine glass cost
 Food Cost
Make sure:
-You are comparing the correct category purchases and
inventory to the correct category sales!
-You are comparing the correct inventory and
purchases period to the correct sales period!
 Food Cost
Ex: Food cost for October
Beg. Inventory (5000 € +
Purchases 24000 € -
End. Inventory 4000 €) /
Food sales 100000 €

Food cost = (25000 € / 100000 €) X 100 = 25%

 Food Cost
Homework !!!
Create your own dish, do the plate cost and calculate
for how much money we should sell it if we aim 23%
food cost?