Recipe Costing Guide PDF

**What is Recipe Costing?** Simply put, recipe costing is exactly what it sounds like: figuring out all of the costs involved in creating an individual recipe or dish from start to finish. For chefs and restaurant owners, knowing how to cost (and thereby price) recipes is absolutely critical, as t...

**What is Recipe Costing?** Simply put, recipe costing is exactly what it sounds like: figuring out all of the costs involved in creating an individual recipe or dish from start to finish. For chefs and restaurant owners, knowing how to cost (and thereby price) recipes is absolutely critical, as the cost of food and ingredients is typically one of a restaurant's top expenses. A successful restaurateur knows, to the cent, the cost to purchase, prepare, and serve every item on their menu, as well as how to adjust that pricing for seasonal price fluctuations. **Food Cost vs Recipe Cost** Just a quick note, as these two terms can overlap and are often confusing.  In comparison to "recipe costing", "food cost" is a more general concept related to the overall cost vs. profit margins for your entire menu and is one category in your restaurant\'s overall operating costs. If you have a number of dishes that use a specific ingredient, say black truffles, and your ROI on those dishes is not meeting your goals, then it may be time to take a look at either finding a lower-cost provider of black truffles (thereby lowering your food cost) or adjusting your menu or recipes accordingly to use less of them, or increasing the price on your truffle dishes.  **How to Calculate Recipe Cost and Food Cost Percentage for a Recipe** The recipe cost, or "food cost" percentage is an industry-standard for showing your food cost in relation to how much money you're making. However, to understand what you're really spending requires two numbers: *"Ideal Recipe Cost" & "Actual Recipe Cost"* Ideal recipe cost is what everything costs on paper, to make a dish, where there's no waste or loss factored in.  Think of ideal vs. actual like this... let's say you're going to bake 10 apple pies. A 10kg case of apples costs you \$40, with an additional \$20 for the remaining ingredients. Ideally, you've spent \$60 to make 10 apple pies, making your food cost \$6 per pie.  However, once you've peeled and cored the apples, and removed some bad spots, etc., you only have 9kg of apple slices, which means you can only make 9 apple pies. Now you've spent \$60 to make 9 apple pies, so your actual food cost is \$6.66 per pie, a 10% increase over your ideal cost. Typically, you want food cost to be around 25% of what you charge for the dish (remember, you still have rent, utilities, and staff to pay!)  So, if you cut that pie into 8 slices, your cost per slice is roughly \$0.83, so you need to be charging at least 4 times that (\$3.33 per slice or \$26.64 per pie) to make a profit on each sale.  ### Why Should I Cost Recipes? Costing recipes is a critical component in the financial success of operating a restaurant.\ Knowing both your ideal and real recipes costs will help you: - Compare your pricing with your competition to ensure that you're not under or over-selling. - Plan and layout menus to focus promotion on your highest ROI (return on investment) items. - Understand how your current clientele values an entrée or dish, and adjust accordingly (price, appearance, serving size, etc) to improve sales. - Maintain a balance of basic ingredients across your entire menu, without overstocking and waste. ### Controlling Recipe Cost Once you've calculated your food costs and investigated any anomalies or issues, you're on the path to better controlling them. There are hundreds -- if not thousands -- of ways you can go about reducing your costs and boosting your profits.\ Here are some tips: - Minimise waste through proper storage, handling, and menu planning. - Track ingredient costs annually to mitigate upcoming increases by ordering in advance or adjusting menus. - Monitor the amount of food returning on plates for portion control, especially higher-cost menu items. - Don\'t be afraid to negotiate with vendors. There's been so much fluctuation in our industry in the last two years and, unfortunately, a lot of businesses, both restaurants and vendors were forced to shut down or adjust their business model. Keeping good and valuable customers can encourage a little flexibility in pricing. - Plan seasonal menus to take advantage of which ingredients are most available (and cheapest) every month. For example: December is typically the best time of the year to get a good price on strawberries. In other words, financially speaking, offering that fresh shortcake in June might not be your best option.  - Organise your pantry and keep track of usage -- knowing how much you're going to need ensures that you only buy it when you need it. Redundancies and waste come out of your bottom line. - Take advantage of software and systems designed to improve restaurant efficiency.   To meet your profit goals, you have to first meet your spending goals. Recipe costing is a big part of that. the Key Components of a Recipe ------------------------------ The 5 essential components of a recipe are: 1. Recipe Title 2. Number of Servings 3. Preparation Time, Cooking Time, Total Time 4. Ingredient List 5. Step-by-Step Instructions Each component plays a fundamental role in creating a recipe that's easy to follow and produces consistent results time and time again. 1) Recipe Title --------------- The recipe title is a key component of a recipe because it's one of the first parts that draws in your audience. By adding a few descriptive words to the title: "quick," "one-pot," "dairy-free, "make-ahead," you can let the reader know important details that may be the deciding factor in whether they continue reading or search for another recipe. Therefore, why not take the time to come up with a quality title. **Feeling stuck coming up with a good recipe title?**   Here is a 3-step method for crafting a simple, yet descriptive title. Step 1: Determine a base word to build your title around. Ask yourself: - What are 1 or 2 main ingredients in the recipe that I want to highlight? - Does this recipe fall under a certain type of dish (burger, casserole, muffins, salad, tacos, etc.)? Step 2: Brainstorm a list of 5 or more [**[words to describe]**](https://www.webstaurantstore.com/article/53/how-to-write-a-menu.html) your recipe. Consider the following categories and examples for inspiration. - **Equipment Used**: air-fryer, cast-iron skillet, instant pot, sheet pan, slow cooker - **Preparation Method**: baked, blanched, charred, roasted, stir-fry - **Served with \_\_\_\_:** dressing, sauce, salsa, topping - **Noteworthy Ingredients and Flavors**: herbs and spices, smoky, sweet, tangy - **Texture:** chewy, creamy, crispy, hearty, sticky Step 3: Create a title by taking the base word from step 1 and pairing it with words from your brainstorm list in step 2.  Play around with different word combinations to come up with a few titles to choose from. 2) Number of Servings --------------------- Rather than leave the reader wondering if your recipe for make-ahead oatmeal will be enough to feed a family of 4, be sure to include the number of servings component. Typically found near the top of the recipe under the title, number of servings is commonly stated using words like: "serves," "yield," and "makes." For instance: - Serves: 4 - Yield: 8 to 10 servings - Makes: 24 cookies 3) Prep Time vs Cook Time vs Total Time --------------------------------------- There are several ways to state how long it takes to put a recipe together. Take a look at these 2 snapshots of recipes. Upon looking at the first recipe you'll notice **time **is written as **Active **and **Total**.  The second recipe breaks down **time** into: **Total**, **Prep**, **Inactive** and **Cook**. At minimum, **Total** time should be stated in your recipe. However, providing the reader with one or more additional time estimations (**Prep, Cook, Active, Inactive)** is yet another way to help set them up for cooking success and ultimately can increase the likelihood they'll try out more of your recipes in the future. Key takeaways when referencing time projections in your recipes: - **Prep** time does NOT include the time it takes to cut and prepare each item for how it is written in the Ingredient List.   - **Inactive** time includes how long it takes for actions such as: chilling, marinating, cooling, dough rising - **Active** time is made up of Prep and Cook time.  - **Total **time = Prep + Cook + Inactive - If the **Total **time does NOT include **Inactive **time consider adding a note such as: "Total Time: 2 Hours, plus time to chill the dough and cool the pie" 4) Ingredient List ------------------ When it comes to writing this part of a recipe, the most important rule to follow is listing the ingredients in the order they will be used. Basically, the ingredients should match up with the order in which they appear in the step-by-step instructions. What if multiple ingredients are used at one time? For instance, a recipe calls for adding ground cumin, ground coriander and salt to a small bowl before mixing. In this case, list the ingredients in order by amount, from largest to smallest: 1 teaspoon ground cumin, ½ teaspoon ground coriander, ¼ teaspoon salt. As with all other forms of writing, remember to [**spell check**](https://thedietitianeditor.com/how-to-become-a-better-speller/), looking out for commonly misspelled food words. A basic, yet important step for recipe writing like a pro. **Here are a few more best practice tips to follow (with examples!):** - Write out measurements (no abbreviations): pint, cup, tablespoon, teaspoon, pound, ounce, etc. - Use "divided" if an ingredient is used more than one time in the recipe: "1 teaspoon salt, divided" or "1/3 cup canola oil plus 2 tablespoons, divided" - Avoid the confusion: INSTEAD OF "2 5-ounce cans tuna," WRITE "2 (5-ounce) cans tuna" or "two 5-ounce cans tuna" - Capitalize the first letter of an ingredient when a number does not precede it: "Ground pepper" vs "1 teaspoon ground pepper" - Double check ingredients are worded as intended: "1 cup almonds, chopped" means to measure 1 cup of almonds and then chop them vs "1 cup chopped almonds" indicates measuring 1 cup of already chopped almonds 5) Step-by-Step Instructions ---------------------------- Last but not least, let's discuss the recipe directions, or preparation method. As stated in the previous section, the ingredient list and recipe directions go hand-in-hand. here are a few other essential details related to: temperature, equipment, and timing and doneness, that should be written into the step-by-step instructions.  Here are wording examples that apply to each. - **Temperature:** "Preheat oven to 350°F," "Heat over medium-high heat" - **Equipment**: "shred with 2 forks," "in a large mixing bowl," "spray a 2-quart baking dish" - **Timing and Doneness**: "Bake for 8-10 minutes, until lightly browned around the edges," "Roast until chicken registers 165°F on a digital thermometer, 40 to 45 minutes" - To ensure a successful outcome, follow the step-by-step instructions provided in the recipe, incorporating specific techniques or cooking methods as necessary. The following table outlines the essential steps for cooking, which are crucial to achieving the desired result: **Step** **Description** ---------- -------------------------------------------- 1 Prepare ingredients and kitchen tools 2 Follow the order of steps in the recipe 3 Use specific techniques or cooking methods 4 Pay attention to time and temperature 5 Taste and adjust seasoning as needed - Following these steps diligently ensures that you are on the right track to creating a delicious dish. Remember, clear and concise directions are vital for a successful outcome. **ACTIVITY:** **In a short bondpaper, create your own recipe following the Components of a RECIPE.** **With margin, ½** **No ERASURES** **NEATLY WRITTEN.**