Grade 12 – Home
Economics
“Commercial
Cooking”
Food
costing
• the ratio of a restaurant's
cost of ingredients (food
inventory) and the
revenue that those
ingredients generate
when the menu items are
sold (food sales).
RECIPE COSTING
• Is a process or activity of
determining the amount of
resources in the form of money,
needed to produce a specific
amount of product(yield) or a
specific amount of serving
portions
On Basic Recipe Costing (Importance)
Understanding the basics of recipe costing is
important so that you can:
• Know how much food cost is incurred
on each recipe.
• Understand how to correctly price your
dishes to achieve a target profit.
• Study the way your competitor prices
their dishes against an industry
benchmark
On Basic Recipe Costing (Importance)
Understanding the basics of recipe
costing is important so that you can:
• Know when to reduce a recipe cost.
• Determine each menu item’s profit
margin and decide which ones to
promote through suggestive selling
and promotions.
Importance of recipe costing
• It is a powerful planning and
controlling tool in terms of:
• Budgeting
• Control
• Determination of selling
price
• Maintaining profitability
Requisites to recipe costing
•Standardized recipe
• Recipe that has
been tried and tested
can be cost
Requisites to recipe costing
• Price list
• Up-to-Date
Ingredient Costs
• Current prices
should be the basis
of costing.
Requisites to recipe costing
• Recipe cost worksheet
• Tool to record the cost of
a certain recipe that
will be computed for
the cost of a standard
How to Cost a Recipe
• Assemble your food receipts and the recipe
• Draw a column.
List the items you need for your recipe in a vertical
column on a piece of paper or spreadsheet.
Create a spreadsheet if
you plan to cost a number
of recipes. This can be
saved as a template and
used for future costing.
• Create three new columns.
Place these to the right of your "Ingredients" column.
They should read "Quantity", "Ingredient Cost" and "Recipe
Cost".
• Use your recipe to determine the quantity of each ingredient on
your list.
For example, if you need 4 eggs in your recipe, write 4 under
"quantity"
•Break down the cost of a product for each individual item,
(ounces, milliliters or grams), using the purchase price.
Usually, the amount purchased is not the amount used,
so you must break the cost down further to arrive at an
accurate recipe cost.
• Restaurants use the term As Purchased (AP)
to determine the purchase price of the amount
of the item purchased, such as a carton of
eggs or milk.
• Restaurants use the term As Served (AS) to
determine the price of a single serving of that
item.
• For example, if you buy a 12 eggs for 66.00
pesos, then the AP is 66.00 pesos. By
dividing 66.00 pesos by 12, you find that
the AS of an egg is 5.50 pesos. If you plan to
use 4 eggs, then that single ingredient will
cost 22.00 pesos for your recipe.
Write your AS amount under the column entitled "Ingredient
Cost".
Using the previous example, you would write 5.50 pesos
in this column.
Multiply the quantity by the ingredient cost in
each row to find the "Recipe Cost" of that item.
Fill out the recipe cost for each of
your ingredients.
Add the numbers in the recipe cost column together to find the
total recipe cost.
Write that number at the bottom of the "Recipe Cost"
column, after the ingredients.
Calculate the cost of the recipe per serving by dividing the
total recipe cost by the number of servings yielded. This is
sometimes called the "Portion Cost".
• Sometimes the AP (As Purchased)
and AS (As Served) will be equal. For
instance, if you're using a bunch of basil in
your recipe, then you do not need to split
the basil into specific servings.
• You may need to estimate the purchase
price of some ingredients if you do not have
the receipt. This may be the case with
essentials like salt and pepper, which may
add only a cent or two to your final figure.
Activity 1: Computing Unit Cost
Food Item AP Cost (Php) Unit Cost
Chicken Breast 140/kg 0.14 (Php)/g
Potatoes 88/kg 0.088 (Php)/g
Milk 24/240 ml 10 (Php)/ml
Flour 54/1 kg 0.054 (Php)/g
Salt 22/ ½ kg 0.04 (Php)/g
Breadcrumbs 56/ ½ kg 0.112 (Php)/g
Eggs 56/dozen 4.67 (Php)/piece
Activity 2– Computing for Recipe Cost
Ingredients Quantity Ingredient Cost Recipe Cost
Chicken Breast 500g 0.14 (Php)/g 70.00 (Php)
Potatoes 1kg 0.088 (Php)/g 88.00 (Php)
Milk 180 ml 10 (Php)/ml 180 (Php)
Flour 100 g 0.054 (Php)/g 5.40 (Php)
Salt 20g 0.04 (Php)/g 0.80 (Php)
Breadcrumbs 400g 0.112 (Php)/g 44.80 (Php)
Eggs 3 pieces 4.67 (Php)/pc. 14.01 (Php)
Total Recipe Cost 403.01
Cost per portion (if 12 servings/recipe) 33.58
