Importance Of Recipe Costing

The main goal of this report is to describe how important are recipe costing and cost control in Food and Beverage branch.

This report contains recipe costing description, explanation of menu pricing, menu list and conceptual difference between actual and planned food cost.

Recipe costing, the first chapter, is briefly describing recipes on the menu list. Second part is about menu pricing strategy, which is chosen for recipes. After this two parts, I am describing the essential differences between planed and actual food cost.

2.0 MENU PRICING

Successful restaurant makes profit from the difference between menu prices and the cost of ingredients. To attract as much customers as we can we need to choose the right prices. That prices need to be high enough to make as much profit as they can and at the same time they must be favourable for our customers.

When we plan our prices we use formula Total

Usually Planned Food Cost is between 20-30%, which might look a lot for somebody. Planned Food Cost is only the amount of money we use to prepare and serve the meal. This cost is not including expenses for paying cooks and waiters. Planned food cost shows us how many percent of Calculated Selling Price Actual Food Cost is at the end. If the portion size and quality of food are rationally planned and we get big share of profit, than Planned Food Cost is lower.

But this is not all what is effecting planning food cost. There are two more very important factors and that are external and internal factors effecting particular household. Factors that can not be influenced by the people are external factors. In this specific case we can say that external factors are for example natural catastrophes and competition. This factors effect for example prices of food, political situation, economical situation and number of