Guidelines for Recipe Costing

7/29/2019 Guidelines for Recipe Costing

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College of Hotel and Tourism ManagementCentral Colleges of the Philippines

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Guidelines for Recipe Costing:

1. Get all theVALUESyou need in a recipe. These would be:

a. The WEIGHTS of all the ingredients in a recipe. Use one kind ofmetric conversion* asmuch as possible for accuracy.

Example:

INGREDIENT WEIGHT UNIT

white onion, chopped 30 grams*

Notice white is underlined. It just means you have to be specific of the type of ingredient

you are using for accurate pricing.

b. The COST of each ingredient AS PURCHASED meaning actual price of theingredient used when it was bought. It would also be advised to get another set of prices of

the same ingredient from another source for comparison.

Example:

INGREDIENTAS PURCHASED

PRICE (APP)UNIT

white onion Php 80.00 kilo

Now, list the ingredient prices in a separate sheet, as a MARKET LIST.Such list wouldbe very useful in costing other recipes. Remember to categorize and alphabetize the list for

quicker browsing.

c. The YIELD, meaning, how many servings are produced by the recipe.d. The TEMPERATUREandCOOKING TIME. These two are very important for

producing the correct texture, consistency and flavor of a recipe. It also helps the chef

calculate the whole production time for managing a well coordinated kitchen.

e. The FOOD COST %and SRP/RSP(Standard Retail Price / Retail selling price).Getting these values will help the chef decide whether the recipe must be adjusted to fit a

certain budget. It will also help the chef device a marketing plan in order to make the recipe

sell or just scrap the whole thing and make another recipe instead. Continuous food recipe

testing and development is needed to end up with a sellable item.


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2. Follow a few formulas for a consistent pricing matrix.a. YIELD:To get the yield of a new recipe, it needs to be tested. Cook the recipe, get the

total cooked weight then have people to taste it. Once all approves of the recipe, the

cooked weight it consistently produced would be used to get the recipe yield.

i. Get the total cooked recipe weight. Then divide the weight by the desired portionweight.

Example:

Total weight = 1000 grams

Portion weight = 200 grams

Formula:

TW = YIELD

PW

Sample:

1000 grams = 5

200 grams

Summary:

YIELD = 5 svgs

ii. Other considerations:If the recipe is to produce prime cut (individual servings) such as steaks, chicken etc.

then the yield should be based on the estimated cooked weight of the meats, partially

disregarding the ingredients for flavoring / marinating the meats OR just plainly how

many cuts are there in the recipe.

You would need to know the cooking weight loss percentage to get the estimated

cooked weight of the meat. Get the total cooked recipe weight. Then divide the weight

by the desired portion weight.

Example:

Total weight = 1000 grams

Cooking weight loss percentage = 30%

Portion weight = 180 grams

Formula:

(TW 30%) = YIELD

PW

Sample:

(1000 g 30%) 700g = YIELD

180 grams 180g

Summary:

YIELD = 3.8 svgs

or roughly 4 svgs


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b. FOOD COST: If in bulk, this would be the total recipe cost. If it were individually servedthen it is the cost per serving.

c. SRP / RSP:To get the Standard Retail Price or the Retail Selling Price you would needthe following:

i. Food costii. Food cost percentageiii. FORMULA:

Food cost = SRP

Food cost %

Example:

Food cost = Php 50.00 per serving

Food cost % = 30%

Php 50.00 = Php 166.67 or rounded up to Php 170.00

30%

SRP/RSP may also vary if MARKUP such as tax is included in the price. The formula would be:

SRP + TAX = Actual Selling Price or the NEW SRP

Php 166.67 + 12% (VAT) = Php 186.67 or rounded up to Php 190.00 to Php 200.00depending on the value of the product being sold.

Documents

Guidelines for Recipe Costing