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.
Enter the menu item name
Enter a menu item recipe ingredient under ingredients
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.
Next, enter the measurement quantity of the ingredient. Example: French Fries: 6 oz. portion Qty (1). Salt: Teaspoon (.13).
Then, enter the unit cost. This is what you paid for it from your purveyor.
The extension columns will automatically calculate and contain formulas. The extension columns are also protected.
The food cost cell contains formulas. This cell represents the extended grand total of all the cost.
This is where you enter the actual menu price for that particular menu item.
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.
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Food Costing Tool Spreadsheet