Food Costing Tool

This is a valuable food costing tool. Why? Because it’s all about the profit margin. You can’t guess what you want your prices to be on your menu, so you need to price it right. Ultimately, every ingredient in a specific menu item has a price attached to it. This price is what you paid for it from your purveyor. First, break down the price per food item.

Example: French fries

Case price is $30.95
Bag price is $5.16
6 oz. Portion price is $0.38

Let’s just say, portions of the fries are 6 ounces. Each bag of fries weighs 5 pounds. 16 ounces x 5 = 80 ounces per bag. 80/6 = 13.33 portions per bag. Then, the bag price $5.16 divided by 13.33 portions per bag = $.38 a portion. Once you know the breakdown dollar figure of that particular ingredient, enter it in the food costing section of the spreadsheet.

Now, you can use this as a guide. Detailed instructions are included on the spreadsheet.

Menu Item

Enter the menu item name

Ingredients

Enter a menu item recipe ingredient under ingredients

Recipe Unit

Click the recipe unit cell, then click on the drop-down box. select either each, oz., gram, liter cup, tablespoon, teaspoon, milliliter (ml), pint, quart or gallon.

Quantity

Next, enter the measurement quantity of the ingredient. Example: French Fries: 6 oz. portion Qty (1). Salt: Teaspoon (.13).

Unit Cost

Then, enter the unit cost. This is what you paid for it from your purveyor.

Extended Cost

The extension columns will automatically calculate and contain formulas. The extension columns are also protected.

Food Cost

The food cost cell contains formulas. This cell represents the extended grand total of all the cost.

Menu price

This is where you enter the actual menu price for that particular menu item.

Gross Profit

The dollar difference from the menu price and the extended food cost price

Food Cost Percentage

Extended cost grand total divided by price menu dollar figure.

New Menu Price

Enter a new menu item price

New Food Cost Percent

Enter the projected food cost percentage in this cell. Above all, this percentage figure is generally where you want your food percentage to be for this particular item. Once you enter this percentage in the new food cost percentage cell the new menu price cell will automatically calculate a new menu price based on the percentage you have entered.

New Gross Profit

This is the dollar difference from the new menu price and the extended food cost price located above the old menu price.

Finally, use the adjusted food cost percentage cell to generate a new menu price based on the food cost percentage that you entered. Example, you entered 25.00% in the adjusted food cost percentage cell. Now, the new menu price based on the percentage that you enter is up to $1.99.

Use this valuable menu costing tool to get your menu prices in line towards a money-making profit. Certainly, the prices for foods and drinks go up periodically. Therefore, your menu prices need to slightly go up in price as well. This increase is necessary in order to keep that profit margin profitable.