What is food cost and how is it calculated?
Ingredient cost = net quantity converted to kg, litres or pieces × purchase price ÷ usable yield. Cost per portion = total recipe cost ÷ portions produced. Food cost = cost per portion ÷ selling price excluding VAT × 100.
Worked example, excluding VAT
For 10 portions: 2 kg tomatoes at ILS 16/kg, 1 kg cheese at ILS 60/kg and 10 breads at ILS 2 each cost ILS 112 in total, or ILS 11.20 per portion. At ILS 40 per portion excluding VAT, food cost is 28% and ingredient margin is ILS 28.80.
Synthetic example with 100% usable yield, not a customer restaurant’s purchases or performance.
Does one recipe’s cost measure the whole restaurant?
Recipe food cost is an estimate based on the quantities and prices entered. Check actual consumption for a period against counts, receipts, movements and sales from that same period. This free calculator does not import sales or maintain stock: use it to cost a dish, then reconcile operational records to understand variances.
Restaurant stock: recipes, counts and variancesIn Foody Kitchen, connect cost to daily operations
This calculator is an independent cost sheet. In Foody Kitchen, configure recipes, stock costs, preparations and consumption to follow ingredient cost in your restaurant’s operations.