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Menu Costing and Margin

How do you cost a recipe accurately down to the true plate cost?

Build a plate cost that reflects real ingredient prices and yields.

How do you cost a recipe accurately down to the true plate cost?
Photo: Unknown via Openverse

Start from real prices

An accurate plate cost begins with what you actually pay, using vendor price and pack size for each ingredient. Guessed prices give a guessed cost.

Converting the pack price to a cost per gram or ounce is the base every recipe cost builds on.

Cost every component

A plate is more than its main ingredient, so the oil, the garnish, and the sauce all count. Leaving out the small stuff understates the cost.

Sub-recipes like a house dressing should be costed once and flow into every plate that uses them.

Account for yield and waste

Raw purchase weight is not what reaches the plate, because trim and cooking loss shrink it. Costing the raw weight makes a plate look cheaper than it is.

Applying honest yields to each ingredient gives a plate cost that matches the food you actually serve.

Keep it current

A plate cost is only true on the day the prices are current, since vendor costs drift. A stale cost quietly misleads your pricing.

Updating prices when they change, and flagging affected recipes, keeps every plate cost honest over time.

Key takeaways
  • Start from real vendor prices
  • Cost every component and sub-recipe
  • Apply yields and trim loss
  • Keep prices current to stay accurate
Julien Jimenez
Written by

Julien Jimenez

Julien Jimenez is an independent software builder based in Paris. He designs, ships, and operates focused SaaS products for small businesses and independent professionals. Read the full author page.

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