Food Cost Calculator

How to Use the Food Cost Calculator

The Food Cost Calculator is a useful tool that helps you accurately determine the cost per portion of your dishes, factor in labor and overhead, and calculate your desired profit margins. Follow this step-by-step guide to understand how to use this calculator effectively.

Step 1: Enter Raw Food Cost

Begin by entering the total cost of all raw food ingredients in the input field labeled Raw Food Cost ($). Ensure this is a positive number and reflects the total expense for preparing all portions.

Step 2: Specify Number of Portions

In the field labeled Number of Portions, input the total number of servings your recipe yields. This must be a whole number, as partial portions are not accepted.

Step 3: Input Labor Data

Fill in the time and rate details in the fields for labor calculations:

• Labor Time (Minutes): Enter the total preparation time required for the dish in minutes.
• Labor Rate ($/Hour): Provide the hourly labor rate you pay your staff.

Ensure accurate labor costs by verifying your inputs for both time and rate.

Step 4: Select Overhead Percentage

Choose an appropriate overhead percentage. This represents additional operating costs you wish to factor into each portion. The available options are:

• 10% – Low
• 15% – Medium
• 20% – High

Select the option that best matches your overhead scenario.

Step 5: Choose Desired Profit Margin

Pick a desired profit margin from the available options:

• 30% – Standard
• 40% – Premium
• 50% – Luxury

This margin will influence your recommended selling price.

Step 6: Review Calculation Results

Once all inputs are correctly provided, the calculator will display the results. These include:

• Food Cost per Portion: The direct cost of ingredients per serving.
• Total Labor Cost: Your total labor expense, based on time and rate.
• Labor Cost per Portion: Labor expenses attributed to each portion.
• Overhead Cost per Portion: The overhead added to each portion.
• Total Cost per Portion: Combined cost of ingredients, labor, and overhead.
• Recommended Selling Price: The price per serving to achieve your desired profit margin.
• Profit per Portion: The profit realized from each serving.
• Actual Profit Margin: The calculated profit margin based on your selling price.

Ensure that results align with your expectations and financial goals.

By following these steps, you will be equipped to make informed pricing decisions for your food services, ensuring profitability while maintaining competitive pricing.