@@DrChefColin - after 911 hit. My chances of making it in the business started to diminish. I struggled thru, but ended up going back to technology, after the executive chef I worked for made the suggestion. I don't regret anything. I learned so much from you, chef Augusto, Chef Barr, etc. Thanks for posting.
@@QuiChiYang2 That's cool! I have a podcast called Culinary School Stories and would love to have you on as a guest. You can check the show out for free on your favorite podcast app or at www.culinaryschoolstories.com
I'm a chef, grilling and barbecue guru, cookbook author and culinary writer who started washing dishes at age 14 before helping manage back of house by my 16th birthday. Tons of mom and pop restaurants and my fair share of fast food cooking during high-school later before bar and kitchen manager through college etc. This video is like going to class. If you are serious about your food truck, corner cupcake shop, pretzel stand, designer hot dog stand dream.... then watch this video and take notes. This is culinary school level information crammed into less than 30 minutes. Not knowing food costs is why so may restaurants fail. - Great job on the video Dr. Professor Chef Colin Roche - Kent
Thanks for the kind words Kent! I hope to keep making free videos on the topic in order to continue to help those out there in the industry, who day in and day out, are trying to make their business a success.
This video has been extraordinarily helpful in helping me understand Recipe Cost. Please make more videos like this that go over these sort of restaurant formulas. Sometimes instructors talk to fast in class and make it impossible to fully understand how they get their answers. You have the perfect speaking pace and give clear examples that really helped me follow along. Thank you.
Hi, it gets factored in by %. For example, if you set your food cost at 30% of selling price you know that there is 70% left from the selling price to cover these other prime costs. So if your labor cost is 30% and your overhead is 30%, then if all goes as planned (no waste, theft, unexpected costs, etc.) that would leave 10% for profit. Of course, all of this is in the preliminary / planning / forecasting stage and then you would need to check and reconcile the true amounts once the meal period or operating period has passed through the use of POS system and/or income statement. Then we make adjustments and do it all over again.
Awesome, I glad it was helpful! Please subscribe if you haven't already and please share the videos with anyone you think would find them to be of interest!
@@DrChefColin It's very helpful. I'm in the culinary program and since schools were closed down, our professor gave us a final to do which was to make our own recipe and then cost it out. And I'm not very good at this at all. And I like the step by step you did here. Will definitely show others this.
@@juanavargas7562 If you want even more detailed info on recipe costing check out the virtual online course I created on the topic. chefroche.com/courses/
Hi, $.56 is the cost of our sandwich and we want that to represent our food cost at 30% of the selling price. Therefore the calculation we would use is .56 / .30, knowing that .30 is the same as 30%. This gives is 1.866666666, which we would round up to $1.87.
Great video, thank you. Once I have my Recipie cost, how do I calculate unit selling price? I have my total variable costs and fixed costs but not sure how I input the Recipie costs into the Unit cost formula. What's the best way to do this?
Divide recipe cost by number of portions or units to get cost per portion, and then divide that by desired food cost % (ex: $20.00 / 10 = a cost of $2.00 per portion / 30% FC = $6.67 selling price)
WOW! Thank you so much for your help! Although I never heard of triangle, or never done or anything past the 10:22 mark it was still helpful. I will be definitely be sharing with my culinary friends! Thanks!!!
Hi Jonnyboy, you would actually conduct a physical yield test or cooking loss test on the product. I hope to make a video on how that is done very soon.
Thank you soo much! I came across this while having issues with my costing ! And this made me understand a little better! Question : I really wanted to know if after I get the selling price of the product, only then can I add extra costing for packaging ?
Hi Keston, thanks for the kind comments. Regarding packaging, if it is always provided with the product, such as a to-go container, come operators add it right on the cost card as another part of the dish. Others don't as the contribution margin (selling price - food cost = contribution margin) would cover it as it does with all other expenses such as labor. And just to let you know, I am currently creating a free online course called "Recipe Costing Made Easy" that will be available soon so if interested be sure you are subscribed to this RUclips channel so you will know when it comes out or follow us through my website at www.chefroche.com
Chef, great video ! I have one small issue if you could clarify please . Why do you add the "desired cost" to the "total plate cost" ? Isn't it already the total cost of the dish ? What is exactly the "management food cost" and why do we add it to the total cost of the dish? Thanks in advance !
I am glad you enjoyed the video Touaibi, and thank you for the comment. The total plate cost tells us how much it cost us, the business, to put all of the food on the plate. It doesn't take into account labor nor overhead costs such as rent, electricity, etc. So the next step is to figure out what you want to sell the plate for so that you can make enough money through the sale to not only pay for the cost of the food on the plate, but also bring in enough money to cover labor, overhead and maybe some profit. This is where the desired cost % comes in, which is a percent that is set by management who have determined that is the food cost percent they are going to use in their establishment. In the example, it is 30%, which means that 30 cents of every dollar brought in from sales will go to pay for the food, leaving 70 cents left over (called contribution margin) to pay for labor, overhead, and maybe profit. Therefore, when we divide .56 by .30 we get 1.86666666 ($1.87) which is the minimum amount we need to sell this dish for in order to maintain a 30% food cost. I hope that helps?
Thanks Netty, that very kind. I am currently creating a free online course called "Recipe Costing Made Easy" so keep your eyes open for that, with other courses added over time. Announcements will be made though this channel so be sure to subscribe so you will be notified and also through my website www.chefroche.com if you want to check it out.
@@netty5571 Here is the link to the free course. It is still in the draft form but once you go through it, I would love any comments or feedback you might have! chefroche.com/course/recipe-costing-made-easy/
You are most welcome! And just to let you know, I am currently creating a free online course called "Recipe Costing Made Easy" that will be available soon so if interested be sure you are subscribed to this channel so you will know when it comes out or follow us through my website at www.chefroche.com
Hi Gabriela, thanks for the positive feedback. I have been asked to make one on Baker's Yield and one on Income Statements. Is there anything in particular that you might want to see?
I am glad you found it helpful. And just to let you know, I am currently creating a free online course called "Recipe Costing Made Easy" that will be available soon so if interested be sure you are subscribed to this channel so you will know when it comes out or follow us through my website at www.chefroche.com
I don't understand how the honey dew cost for the recipe is less then the cost to buy a full honey dew. It should be more bc you don't get 100 percent yield on the whole honey dew. How can you operate at a profit if you don't calculate waste in your recipe cost?
Hi Nick, the recipe cost depends on how much of a product you are using. For example, say a 5 lb bag of potatoes costs $5 but you are only using 1/2 pound in your recipe, then the recipe cost would only be $.50 if you got 100% yield from the potatoes. If you had 50% waste with the potatoes then the bag really cost you $10, and the half pound would now cost you $1.00. I hope that helps?
Yes, once you know your costs and %, a template is highly advised. Then you just have to plug in the info from each recipe and you can get a preliminary selling price.
Glad you liked it! And just to let you know, I am currently creating a free online course called "Recipe Costing Made Easy" that will be available soon so if interested be sure you are subscribed to this channel so you will know when it comes out or follow us through my website at www.chefroche.com
The Q factor is an immeasurable ingredient cost that is assigned to ingredients that are impossible, or too time consuming, to calculate (such as "to taste"or "as needed"). The chef or manager would be the person that usually picks the percentage to use for their establishment, ranging from 1% to 15% of the total ingredient cost.
How do you factor in price changes in raw material of a products? Would it mean we need to revise the menu rates every time there's a price change in raw material?
Hi Kennedy, thanks for the question. You don't necessarily have to because most product's prices do not fluctuate that much overtime however you would want to review your cost sheets yearly to make sure your numbers are still on track or if there was some unordinary increase, say like pork prices doubled because of some break in the food distribution chain. Now some large restaurant chains, etc. have their costs cards tied to their purchasing system so they are constantly being updated as prices change on their vendor invoices.
@@kenpereira1 I also just opened my free course titled "Recipe Costing Made Easy" if you want to check it out at: chefroche.com/course/recipe-costing-made-easy/
It depends on the recipes as to what the standard yield and the standard portion will be. For example a recipe might make 10 gallons of soup however the number of portions will depend on what size serving is given (8 oz cup, 12 oz. bowl, etc.)
Hi Kostas, usually fryer oil would be treated as part of the utility or wrap cost (like flour used on the table to roll out dough) and on the cost card I use would be part of the Q factor. Let me know if that makes sense?
Hi, you wouldn't need to use this cost card because you wouldn't have that many ingredients / items to account for as in a recipe. I would just use a % markup. Here is a link to an article that explains it - smallbusiness.chron.com/markup-percentage-retail-clothing-80777.html
The cost for the frying oil would be recovered in each recipe through the Q factor amount which is the percentage that is added to cover costs to small to measure such as items in a recipe labeled “to taste” or “as needed” .
Hi Leslie, I am glad you like the video! Regarding your question, it is just a made up yield and portion to illustrate the costing calculation and it something that would be determined by your standardized recipe that you would use in your specific operation. A recipe makes a certain "batch" of a product and how many portions you get out of it would depend on the size of the portion you are serving (how big a cookie is it?) and the number of those portions that would make up a serving (in this case a 1 cookie portion is a serving) . I hope that answers your question?
Greetings Chef. Were you able to make the template available on your page? I did not find it. I tried to create the template from watching your video but something went wrong with the formula. Thank you.
Hi Marvin, the actual selling price is usually based on what the market in the area will pay. Of course you want to charge as much as possible but there is a threshold where customers won't cross. To determine what that number is one would have to do some bench marking and see what the local competition is charging to the local demographics.
Chef suppose if you take a party for 3000 pax it consists of a salad, soup, Main course Lamb, Main course Fish, Main course vegetables, Pasta item, two desserts , that would be in buffet not a preplated how do we get accurate food cost we go by open beginning inventory of that party food subtract the closing inventory of that party = usage that is basically a consumption/ Total sales of that party multiply by 100
Hello Czar, thanks for the question. Your answer of 0.1872909699 is absolutely correct, it is just in decimal form. And since we are looking for for actual cost % we would need to show it as a percentage. To do so, we would just multiple the decimal by 100 which moves the decimal point two places to the right making it 18.72909699%. I then just shortened it to the first decimal or 10ths place which gives me 18.7%. I hope that helps, Colin
Hi, thanks for the question. In this case the 2.99 refers to pounds and since we want to find the ounce price, we divide by 16 (16 ounces in a Lb.) in order to find that price.
Chef please explain me How to make the Banquet Food cost which the same kitchen produces for 2000 pax , 500 pax, 1500 pax, 150 pax for a 10 course meal on the same day , the food is placed unlimited on different Banquet Halls and at the end of the party how the kitchen arrives the food cost separately for the above mentioned pax in kitchen
There are three common pricing systems that are often used. 1. Fixed pricing is a system in which each item on the menu has a fixed cost and quantity. For example, $20 for two servings of baked chicken. 2. Tiered pricing is a system in which the price per person goes down the higher the total guest count goes up. This system is commonly used for buffets but also can be used when serving seated meals with individual plates and predetermined portions. 3. Custom pricing is a system in which you create a custom quote for each customer based on their needs and your costs. Here is a link to an article where you can get more info: smallbusiness.chron.com/price-catering-menu-13906.html
Thank you chef, for your answer, Finally how to attain a Food cost in my kitchen for 4 different parties in my single point of kitchen that is my question how can I take budget of my selling cost per person
Hi Tara, you will first need to calculate the costs of the items you are serving which can then be divided by your food cost percentages to get your selling price.
very good video! thank you for sharing! may i ask how do you determine the quantity / portion size of subrecipes or even main recipes i.e. there are cases that a main recipe requires a sub-recipe. if someone does the costing drill for the subrecipe he will need then to calculate the cost per unit for the subrecipe and allocate this cost to the main recipe. my question is that in many cases the sum of the subrecipe ingredients might not add up to the grand total, weight/size wise..is there a way to estimate the final subrecipe size/portion apart from doing actual testing?
Hi Dimitris, I am not sure I fully understand your question. Are you asking how one determines how many portion you can get from a specific recipe's yield? Or are you asking about the recipe and costs associated with the other items that are included on the plate?
@@DrChefColin i think the best way to describe it is through an example. let's assume that we have a recipe that requires 5 ingredients ie Recipe A. we do have the direct costs and yields for the 4 of them but the 5th one is an ingredient that will be prepared as a recipe e.g. gazpacho - recipe B. in order to make the gazpacho let's assume we need the following: Cucumber 250g, Shallot 20 g, Avocado 1/2, Lemon Juice 5g, Mint 1g, Olive Oil 5g, Water 30g, Green Pepper 10g once we combine those the end result will be some amount of gazpacho, which of course will be much more from what we need to use in the original recipe. the question relates on how we will calculate accurately the cost per unit e.g. grams for gazpacho and then attach this to the original recipe - let's assume we need just 20g of gazpacho for the main 5-ingredients recipe . theoretically we could assume that the sum of the weight of the ingredients to prepare the gazpacho will give us the total size/quantity prepared. but in reality there is waste/trim so if the sum of the ingredients was let's say 330gr the actual gazpacho we will get at the end will be less let's assume 280g. apart from testing and weighing this, do you suggest any approach on how to estimate the 280g and then out of it extract the gazpacho cost per g so that to add it to the original recipe? thank you in advance for your time and great support!
@@DimitrisL Hi, thanks for the clarification. In this case, the gazpacho would need its own recipe cost card. This is the same if you have a recipe for an entree like baked salmon with lemon sauce which you cost out to get the cost for one portion. Then you serve it with rice pilaf and glazed carrots, the portion cost for these side items would be written in on the recipe cost card so that you can get total plate cost and then selling price. However these side items would have their own cost card having gone through the calculations to determine their portion cost, selling price, etc. Every recipe in an establishment needs its own recipe cost card and that is a lot of work which is why many establishments unfortunately don't do it. I hope that answered your question? If not, please let me know. Colin
Hello Arun, The best way to get the edible yield percentage of a product is to conduct a yield test on the item. For example, say you have one pound of onions (As Purchased Weight) and then you fabricate them to remove the outer skin / stem end, ending up with 3/4 of a pound of usable product (Edible Product Weight), then you would know that onions for your establishment have a 75% yield (.75 / 1), or 25% waste. Though this is more accurate since it is conducted by the staff / employees who will be preparing the food in your establishment, it does take time and product. An easier way, especially if you are just trying to get an approximate %, is to consult a yield chart and use those percentages. As mentioned in the video, the Book of Yields is great for this, but you can also find them in many professional culinary texts. You can just do an internet search too. Here is a link to one by US Foods - www.usfoods.com/content/dam/dce/pdfs/Your-Business/Easy-Ordering/MPP_Online-Common_Product_Yields_and_Conversions.pdf I hope that helps?
The "Book of Yields" can also be purchased in a CD format which can then be loaded on to a computer making items searchable and easier / more convenient to use!
Hello chef, can u please explain, from the honeydew melon example where did you get the 16, where you divided it to the price of $2.99. Im confused, that 16 is what conversion it is from?
Hello Erik, the recipe amount needed is 8 ounces (with the unit being ounces), therefore we need to be sure our recipe cost unit section is in ounces as well. Since we purchased the melon in pounds as shown in the invoice section ($2.99 lb.) we need to divide by 16 (the # of ounces in a pound) in order to get the cost of melon per ounce. Once we have this common unit price, we can multiple it by the amount need in the recipe as shown in the as purchased section. Let me know if that helps?
Hi Patrick, the 57.5 percent came from the Book of Yields and basically means that the melon has than much edible yield, which means 42.5 percent waste. You could also do an actual yield test on the melon as well and probably get a more accurate EY%. Colin
Hi Tara, thanks for the question. Edible yield percentages are usually obtained either by conducting an actual yield test in the kitchen or by looking the yield up in various books or charts. One professional resource I would recommend is the "Book of Yields' (amzn.to/2FcvKwH). Colin
Chef in the Recipes costing are you not taking the Gas/Fuel consumption and Labour cost to produce that particular Recipe can we add up or else we Can't add up those costs is my Recipe costing please explain in detail
Chef actual yield test of the particular ingredient various on different factors like cuts of vegetables or else meat and methods of cooking , depending upon the season change how can I take the accountability of EY % in my Recipe factor
@@tarasuresh3912 The EY% from the various charts gives you an average which works for most applications. If you wanted to more accurate, I suggest you perform a yield test on the item having the person who will be preparing the item do the fabrication.
Simon Salomon Hi Simon, there are tons of free templates out there, just Google recipe cost card or recipe costing and you should find a variation that would fit your needs. Let me know if you have any other questions!
@@chelseafanreyes1380 Oh no, I am sorry to hear that. If interested, I have an online, self-paced recipe costing course on my website? Here is the link in case you want to check it out - foodmedianetwork.com/course/recipe-costing-made-easy/ If you decide to enroll, you can get the course for half price by using the code SAVE50
Hi, I am not sure I 100% understand the question but I am guessing you may be asking if labor cost is factored in when costing out recipes? Please write back and let me know if I misunderstood or if that is the question. Thanks, Colin
yes. I was wondering if there was a time element that was in putted into the food cost or a some kind of formula where labor (possibly equiptment needed) and profit was factored.
OK, great question!The short answer is the labor cost gets factored it through what is called the "contribution margin".Now let me try and explain the long answer. Once you have the cost of the dish calculated by using a recipe cost sheet, you can then figure out a selling price for the dish by dividing the cost of the dish by the food cost % you determine you want to use (i.e. $3.00 cost / 30% FC = $10.00 selling price). Now that 30% FC means that for every dollar that is brought in with sales, 30 cents of it would go to paying for the food on that plate. This would also mean that you have 70 cents of every dollar left over to pay for other things, and this is know as contribution margin (Sales - food cost = contribution margin).Now that 70 cents (CM) would then be used to pay for labor cost and overhead costs, leaving (hopefully) a little bit left over for profit.Therefore, this is where the time / labor gets factored in, as well as things like rent/mortgage, utilities, advertising, etc. However to really visualize the labor costs and overhead, one would want to look at the income statement, but that of course would be in another video I have yet to make!I hope that helps?Colin
Hi Brendan, thanks for the comment. Out of the two common measurement systems used in the commercial kitchen in this country, the metric system is definitely the easiest; however, for better or worse, US Standard is the one often used the most. Therefore, in order to help the most people possible understand recipe costing, I choose to make the video using US Standard. But maybe remaking it using the metric system is a possibility for a future video! (As a side note, I believe the United States is one of only three nations (along with Liberia and Burma) that have not adopted the metric system as their official system of weights and measures!)
Florida Culinary Institute 1999 - 2000 you were my Chef for nouvelle cuisine. I remember your class on costing. So, important in this craft.
Hey how are you? I hope you are well! Where are you living / working now?
@@DrChefColin - after 911 hit. My chances of making it in the business started to diminish. I struggled thru, but ended up going back to technology, after the executive chef I worked for made the suggestion. I don't regret anything. I learned so much from you, chef Augusto, Chef Barr, etc. Thanks for posting.
@@QuiChiYang2 That's cool! I have a podcast called Culinary School Stories and would love to have you on as a guest.
You can check the show out for free on your favorite podcast app or at www.culinaryschoolstories.com
I'm a chef, grilling and barbecue guru, cookbook author and culinary writer who started washing dishes at age 14 before helping manage back of house by my 16th birthday. Tons of mom and pop restaurants and my fair share of fast food cooking during high-school later before bar and kitchen manager through college etc. This video is like going to class. If you are serious about your food truck, corner cupcake shop, pretzel stand, designer hot dog stand dream.... then watch this video and take notes. This is culinary school level information crammed into less than 30 minutes. Not knowing food costs is why so may restaurants fail. - Great job on the video Dr. Professor Chef Colin Roche
- Kent
Thanks for the kind words Kent! I hope to keep making free videos on the topic in order to continue to help those out there in the industry, who day in and day out, are trying to make their business a success.
This is the perfect explanation you have saved from many tears on my class project. Thank you so much
Glad it was helpful!
This video has been extraordinarily helpful in helping me understand Recipe Cost. Please make more videos like this that go over these sort of restaurant formulas. Sometimes instructors talk to fast in class and make it impossible to fully understand how they get their answers. You have the perfect speaking pace and give clear examples that really helped me follow along. Thank you.
Huda Ford Thanks Huda! I hope to get more videos uploaded soon!
👍
See vedio and help to know recipe cost by using this software ruclips.net/video/zEzfgLlPizo/видео.html
that was so well explained. so simple. I normally hate math but you broke it down so easily. clear, consise and beautifully consistent
if you could also do a video on restaurant profit and loss sheet similarly would be great.
Great idea Zenobia, let me see if I can get a video on the topic posted ASAP.
How do you account for costs such as labour, and overhead when setting prices?
Hi, it gets factored in by %. For example, if you set your food cost at 30% of selling price you know that there is 70% left from the selling price to cover these other prime costs. So if your labor cost is 30% and your overhead is 30%, then if all goes as planned (no waste, theft, unexpected costs, etc.) that would leave 10% for profit.
Of course, all of this is in the preliminary / planning / forecasting stage and then you would need to check and reconcile the true amounts once the meal period or operating period has passed through the use of POS system and/or income statement. Then we make adjustments and do it all over again.
Thank you so much for this video. I've been stuck trying to figure food cost out for my catering business. Thank you for simplifying it!
You are welcome Amber, I am glad it was helpful!
If you want even more detailed info on recipe costing check out the virtual online course I created on the topic. chefroche.com/courses/
I struggle a lot with trying to figure how to do a food cost. So this was really helpful.
Awesome, I glad it was helpful! Please subscribe if you haven't already and please share the videos with anyone you think would find them to be of interest!
@@DrChefColin It's very helpful. I'm in the culinary program and since schools were closed down, our professor gave us a final to do which was to make our own recipe and then cost it out. And I'm not very good at this at all. And I like the step by step you did here.
Will definitely show others this.
@@juanavargas7562 That is awesome!
@@juanavargas7562 If you want even more detailed info on recipe costing check out the virtual online course I created on the topic. chefroche.com/courses/
Thank you chef Roche
You are very welcome@
Hi
30% of .56c is equal .728 so from where did you get 1.87
Hi,
$.56 is the cost of our sandwich and we want that to represent our food cost at 30% of the selling price. Therefore the calculation we would use is .56 / .30, knowing that .30 is the same as 30%. This gives is 1.866666666, which we would round up to $1.87.
Great video, thank you. Once I have my Recipie cost, how do I calculate unit selling price? I have my total variable costs and fixed costs but not sure how I input the Recipie costs into the Unit cost formula. What's the best way to do this?
Divide recipe cost by number of portions or units to get cost per portion, and then divide that by desired food cost % (ex: $20.00 / 10 = a cost of $2.00 per portion / 30% FC = $6.67 selling price)
You’re an awesome teacher! Thank you. Extremely helpful.
Thank you Amber! I am glad you found the video to be helpful!
If you want even more detailed info on recipe costing check out the virtual online course I created on the topic. chefroche.com/courses/
excellent explanation
Thanks Mary!
The video makes everything clear. Is there away to get the worksheets that go along into it?
Sure, you can get a copy from my free mini course "Recipe Costing Made Easy" - chefroche.com/course/recipe-costing-made-easy/
very well explained
thorough tutorial. thank you!
Thanks for the comment!
WOW! Thank you so much for your help! Although I never heard of triangle, or never done or anything past the 10:22 mark it was still helpful. I will be definitely be sharing with my culinary friends! Thanks!!!
Aaron Dodd Your welcome, I am glad it helped!
DrChefColin got a perfect score on the project :)
hello, lets say that I don't have the book of yields, and I needed to calculate yield %. How would I do I manually calculate the yield %? thanks
Hi Jonnyboy, you would actually conduct a physical yield test or cooking loss test on the product. I hope to make a video on how that is done very soon.
Thank you soo much! I came across this while having issues with my costing ! And this made me understand a little better!
Question : I really wanted to know if after I get the selling price of the product, only then can I add extra costing for packaging ?
Hi Keston, thanks for the kind comments. Regarding packaging, if it is always provided with the product, such as a to-go container, come operators add it right on the cost card as another part of the dish. Others don't as the contribution margin (selling price - food cost = contribution margin) would cover it as it does with all other expenses such as labor. And just to let you know, I am currently creating a free online course called "Recipe Costing Made Easy" that will be available soon so if interested be sure you are subscribed to this RUclips channel so you will know when it comes out or follow us through my website at www.chefroche.com
Chef, great video ! I have one small issue if you could clarify please .
Why do you add the "desired cost" to the "total plate cost" ? Isn't it already the total cost of the dish ?
What is exactly the "management food cost" and why do we add it to the total cost of the dish?
Thanks in advance !
I am glad you enjoyed the video Touaibi, and thank you for the comment.
The total plate cost tells us how much it cost us, the business, to put all of the food on the plate. It doesn't take into account labor nor overhead costs such as rent, electricity, etc.
So the next step is to figure out what you want to sell the plate for so that you can make enough money through the sale to not only pay for the cost of the food on the plate, but also bring in enough money to cover labor, overhead and maybe some profit. This is where the desired cost % comes in, which is a percent that is set by management who have determined that is the food cost percent they are going to use in their establishment. In the example, it is 30%, which means that 30 cents of every dollar brought in from sales will go to pay for the food, leaving 70 cents left over (called contribution margin) to pay for labor, overhead, and maybe profit.
Therefore, when we divide .56 by .30 we get 1.86666666 ($1.87) which is the minimum amount we need to sell this dish for in order to maintain a 30% food cost.
I hope that helps?
Thanks a lot chef it's much clearer now ! 🙏
Thank you for this explanation dang why couldn’t you be my teacher in college.
Thanks Netty, that very kind. I am currently creating a free online course called "Recipe Costing Made Easy" so keep your eyes open for that, with other courses added over time. Announcements will be made though this channel so be sure to subscribe so you will be notified and also through my website www.chefroche.com if you want to check it out.
@@DrChefColin thank I will keep a eye and check out the site.
@@netty5571 Here is the link to the free course. It is still in the draft form but once you go through it, I would love any comments or feedback you might have!
chefroche.com/course/recipe-costing-made-easy/
perfect explanation..thank you very much..greece
You are so welcome, thanks for the comment!
It would be nice if you set up a template that chefs could purchase.
Hi Jake, you can actually get the template for free on my website. Go to chefroche.com and look undert he storefront tab.
Very informative and easy to understand! Also great examples but wish you could of done an example with a different yields.
Thanks for the suggestion Erica. I will try and make a second video demonstrating that.
Thank you very much Chef
You are most welcome! And just to let you know, I am currently creating a free online course called "Recipe Costing Made Easy" that will be available soon so if interested be sure you are subscribed to this channel so you will know when it comes out or follow us through my website at www.chefroche.com
Thank you for the video. Extremely informative, please make more videos.
Hi Gabriela, thanks for the positive feedback. I have been asked to make one on Baker's Yield and one on Income Statements. Is there anything in particular that you might want to see?
This was so informative. Thanks so much Chef!!!!
I am glad you found it helpful. And just to let you know, I am currently creating a free online course called "Recipe Costing Made Easy" that will be available soon so if interested be sure you are subscribed to this channel so you will know when it comes out or follow us through my website at www.chefroche.com
The free mini course "Recipe Costing Made Easy" is now available at: chefroche.com/course/recipe-costing-made-easy/
I don't understand how the honey dew cost for the recipe is less then the cost to buy a full honey dew. It should be more bc you don't get 100 percent yield on the whole honey dew. How can you operate at a profit if you don't calculate waste in your recipe cost?
Hi Nick, the recipe cost depends on how much of a product you are using. For example, say a 5 lb bag of potatoes costs $5 but you are only using 1/2 pound in your recipe, then the recipe cost would only be $.50 if you got 100% yield from the potatoes. If you had 50% waste with the potatoes then the bag really cost you $10, and the half pound would now cost you $1.00. I hope that helps?
After factoring all this in, it's easy enough to make up an Excel template that does all the work for you!
Yes, once you know your costs and %, a template is highly advised. Then you just have to plug in the info from each recipe and you can get a preliminary selling price.
Awesome video,thanks
Glad you liked it! And just to let you know, I am currently creating a free online course called "Recipe Costing Made Easy" that will be available soon so if interested be sure you are subscribed to this channel so you will know when it comes out or follow us through my website at www.chefroche.com
Chef please explain how to obtain the Q Factor % in detail how it helps in my Recipe costing
The Q factor is an immeasurable ingredient cost that is assigned to ingredients that are impossible, or too time consuming, to calculate (such as "to taste"or "as needed"). The chef or manager would be the person that usually picks the percentage to use for their establishment, ranging from 1% to 15% of the total ingredient cost.
How do you factor in price changes in raw material of a products? Would it mean we need to revise the menu rates every time there's a price change in raw material?
Hi Kennedy, thanks for the question. You don't necessarily have to because most product's prices do not fluctuate that much overtime however you would want to review your cost sheets yearly to make sure your numbers are still on track or if there was some unordinary increase, say like pork prices doubled because of some break in the food distribution chain. Now some large restaurant chains, etc. have their costs cards tied to their purchasing system so they are constantly being updated as prices change on their vendor invoices.
@@DrChefColin Thank you very much for your detailed explanation as well as replying to my questions.
@@kenpereira1 I also just opened my free course titled "Recipe Costing Made Easy" if you want to check it out at: chefroche.com/course/recipe-costing-made-easy/
Thank you Sir.
You are welcome!
thank you for this video
Chef is the Standard yield and Standard Portion are the same for the all Recipes in the I J K chart in Recipe costing
It depends on the recipes as to what the standard yield and the standard portion will be. For example a recipe might make 10 gallons of soup however the number of portions will depend on what size serving is given (8 oz cup, 12 oz. bowl, etc.)
How would you cost fryer oil? As an individual ingredient or a utility?
Hi Kostas, usually fryer oil would be treated as part of the utility or wrap cost (like flour used on the table to roll out dough) and on the cost card I use would be part of the Q factor. Let me know if that makes sense?
Dr. Roche did you every teach at the Fl. Culinary Institute in WPB?
Yes, I did teach there, 2000 to 2003 I believe.
I'm trying to open a t shirt business and I was wondering if I could use this table as a factor for my business?
Hi, you wouldn't need to use this cost card because you wouldn't have that many ingredients / items to account for as in a recipe. I would just use a % markup. Here is a link to an article that explains it - smallbusiness.chron.com/markup-percentage-retail-clothing-80777.html
Hi Chef.
How would you measure the oil used to fry potatoes for your recipe if you have a Commercial deep fryer?
Thanks in advance!
The cost for the frying oil would be recovered in each recipe through the Q factor amount which is the percentage that is added to cover costs to small to measure such as items in a recipe labeled “to taste” or “as needed” .
Hi Colin, Great Video! How did you calculate "Standard Yield" 96 and "Standard portion" 1 for the cookies recipe?
Hi Leslie, I am glad you like the video! Regarding your question, it is just a made up yield and portion to illustrate the costing calculation and it something that would be determined by your standardized recipe that you would use in your specific operation. A recipe makes a certain "batch" of a product and how many portions you get out of it would depend on the size of the portion you are serving (how big a cookie is it?) and the number of those portions that would make up a serving (in this case a 1 cookie portion is a serving) . I hope that answers your question?
This is a great help for me. Could it be possible to provide us a link to download the template? Thanks for the great help
Hello Arnold, let me see if I can upload an Excel file with it to my RUclips site.
Greetings Chef. Were you able to make the template available on your page? I did not find it. I tried to create the template from watching your video but something went wrong with the formula. Thank you.
@@DrChefColin Did you upload the templates?
Hi, email me (ChefCPR@gmail.com) and I will send you a copy as an Excel spreadsheet, Colin
Hi Marcus, I wasn't able to upload the Excel template however email me (ChefCPR@gmail.com) and I will glad to send you a copy, Colin
thanks chef!
how to determine the actual selling price? is it the inflation rate or specified by management?
Hi Marvin, the actual selling price is usually based on what the market in the area will pay. Of course you want to charge as much as possible but there is a threshold where customers won't cross. To determine what that number is one would have to do some bench marking and see what the local competition is charging to the local demographics.
Is this excel spreadsheet available somewhere? Trying to price out items on a food truck and don't know how to add the formulas into a spreadsheet.
Hi, yes the template is posted on my website at chefroche.com. Look under the storefront tab.
Also just opened my new Free mini course on the topic at: chefroche.com/course/recipe-costing-made-easy/
Chef suppose if you take a party for 3000 pax it consists of a salad, soup, Main course Lamb, Main course Fish, Main course vegetables, Pasta item, two desserts , that would be in buffet not a preplated how do we get accurate food cost we go by open beginning inventory of that party food subtract the closing inventory of that party = usage that is basically a consumption/ Total sales of that party multiply by 100
Sure, you could do it that way if you wanted to know how much product, or inventory, was used or produced.
Hello chef, I calculated your W=S/V I came up with 0.1872909699.. how did you get 18.7 ? I'm sorry, did I missed something..?
Hello Czar, thanks for the question.
Your answer of 0.1872909699 is absolutely correct, it is just in decimal form. And since we are looking for for actual cost % we would need to show it as a percentage. To do so, we would just multiple the decimal by 100 which moves the decimal point two places to the right making it 18.72909699%. I then just shortened it to the first decimal or 10ths place which gives me 18.7%.
I hope that helps,
Colin
Hi sir i would like to ask where does 16 came from in dividing the invoice cost which $2.99 that equal to .1868 ?
Hi, thanks for the question. In this case the 2.99 refers to pounds and since we want to find the ounce price, we divide by 16 (16 ounces in a Lb.) in order to find that price.
Chef please explain me How to make the Banquet Food cost which the same kitchen produces for 2000 pax , 500 pax, 1500 pax, 150 pax for a 10 course meal on the same day , the food is placed unlimited on different Banquet Halls and at the end of the party how the kitchen arrives the food cost separately for the above mentioned pax in kitchen
There are three common pricing systems that are often used. 1. Fixed pricing is a system in which each item on the menu has a fixed cost and quantity. For example, $20 for two servings of baked chicken. 2. Tiered pricing is a system in which the price per person goes down the higher the total guest count goes up. This system is commonly used for buffets but also can be used when serving seated meals with individual plates and predetermined portions. 3. Custom pricing is a system in which you create a custom quote for each customer based on their needs and your costs. Here is a link to an article where you can get more info: smallbusiness.chron.com/price-catering-menu-13906.html
Thank you chef, for your answer, Finally how to attain a Food cost in my kitchen for 4 different parties in my single point of kitchen that is my question how can I take budget of my selling cost per person
Hi Tara, you will first need to calculate the costs of the items you are serving which can then be divided by your food cost percentages to get your selling price.
very good video! thank you for sharing!
may i ask how do you determine the quantity / portion size of subrecipes or even main recipes i.e. there are cases that a main recipe requires a sub-recipe. if someone does the costing drill for the subrecipe he will need then to calculate the cost per unit for the subrecipe and allocate this cost to the main recipe. my question is that in many cases the sum of the subrecipe ingredients might not add up to the grand total, weight/size wise..is there a way to estimate the final subrecipe size/portion apart from doing actual testing?
Hi Dimitris, I am not sure I fully understand your question. Are you asking how one determines how many portion you can get from a specific recipe's yield? Or are you asking about the recipe and costs associated with the other items that are included on the plate?
@@DrChefColin i think the best way to describe it is through an example. let's assume that we have a recipe that requires 5 ingredients ie Recipe A. we do have the direct costs and yields for the 4 of them but the 5th one is an ingredient that will be prepared as a recipe e.g. gazpacho - recipe B.
in order to make the gazpacho let's assume we need the following: Cucumber 250g, Shallot 20 g, Avocado 1/2, Lemon Juice 5g, Mint 1g, Olive Oil 5g, Water 30g, Green Pepper 10g
once we combine those the end result will be some amount of gazpacho, which of course will be much more from what we need to use in the original recipe.
the question relates on how we will calculate accurately the cost per unit e.g. grams for gazpacho and then attach this to the original recipe - let's assume we need just 20g of gazpacho for the main 5-ingredients recipe .
theoretically we could assume that the sum of the weight of the ingredients to prepare the gazpacho will give us the total size/quantity prepared. but in reality there is waste/trim so if the sum of the ingredients was let's say 330gr the actual gazpacho we will get at the end will be less let's assume 280g. apart from testing and weighing this, do you suggest any approach on how to estimate the 280g and then out of it extract the gazpacho cost per g so that to add it to the original recipe? thank you in advance for your time and great support!
@@DimitrisL Hi, thanks for the clarification. In this case, the gazpacho would need its own recipe cost card. This is the same if you have a recipe for an entree like baked salmon with lemon sauce which you cost out to get the cost for one portion. Then you serve it with rice pilaf and glazed carrots, the portion cost for these side items would be written in on the recipe cost card so that you can get total plate cost and then selling price. However these side items would have their own cost card having gone through the calculations to determine their portion cost, selling price, etc.
Every recipe in an establishment needs its own recipe cost card and that is a lot of work which is why many establishments unfortunately don't do it.
I hope that answered your question? If not, please let me know. Colin
hy there! how could we get edible portion in percentage? do we have any formula or ultimately we need to go through practically? thank you.
Hello Arun,
The best way to get the edible yield percentage of a product is to conduct a yield test on the item. For example, say you have one pound of onions (As Purchased Weight) and then you fabricate them to remove the outer skin / stem end, ending up with 3/4 of a pound of usable product (Edible Product Weight), then you would know that onions for your establishment have a 75% yield (.75 / 1), or 25% waste.
Though this is more accurate since it is conducted by the staff / employees who will be preparing the food in your establishment, it does take time and product. An easier way, especially if you are just trying to get an approximate %, is to consult a yield chart and use those percentages.
As mentioned in the video, the Book of Yields is great for this, but you can also find them in many professional culinary texts. You can just do an internet search too. Here is a link to one by US Foods - www.usfoods.com/content/dam/dce/pdfs/Your-Business/Easy-Ordering/MPP_Online-Common_Product_Yields_and_Conversions.pdf
I hope that helps?
Dr. Professor Chef Colin Roche thank you so much chef for your valued suggestions.
Thank you very much !
great video! Thank you.
Where can I find the book if yield?
AMAZON AND CHEGG
The "Book of Yields" can also be purchased in a CD format which can then be loaded on to a computer making items searchable and easier / more convenient to use!
Per portion recipe how take
Hi Pramod, I am not sure I understand your question, please resend, Colin
Could you please make these sheets and worksheets available to the public?
Hi Rolando, what's your email and I will send you an Excell spreadsheet of the form.
Emailed you.
@@rolandoriggio5026 You can also find the sheet in the free mini course I made at: chefroche.com/course/recipe-costing-made-easy/
Hello chef, can u please explain, from the honeydew melon example where did you get the 16, where you divided it to the price of $2.99. Im confused, that 16 is what conversion it is from?
Hello Erik, the recipe amount needed is 8 ounces (with the unit being ounces), therefore we need to be sure our recipe cost unit section is in ounces as well. Since we purchased the melon in pounds as shown in the invoice section ($2.99 lb.) we need to divide by 16 (the # of ounces in a pound) in order to get the cost of melon per ounce. Once we have this common unit price, we can multiple it by the amount need in the recipe as shown in the as purchased section. Let me know if that helps?
Colin Roche
Chef thank you for your reply, this videos of yours really help me.. Thanks,
God bless you
chef how do you get your template form google that is very clear
You can go to my website chefroche.com and I will post it there.
Hey chef! Wher did u get that 16? At 7:58.. im very sorry im very slow in mathematics or any other calculations. Thanks!!
No worries. The 16 is for the number of ounces in a pound.
Dr. Professor Chef Colin Roche 16 oz is equal to 1 lb?
Yup
Where did do get the 57.5 percent?
Hi Patrick, the 57.5 percent came from the Book of Yields and basically means that the melon has than much edible yield, which means 42.5 percent waste. You could also do an actual yield test on the melon as well and probably get a more accurate EY%. Colin
Chef how we get the Edible Yeild percentage in your chart please explain in detail
Hi Tara, thanks for the question. Edible yield percentages are usually obtained either by conducting an actual yield test in the kitchen or by looking the yield up in various books or charts. One professional resource I would recommend is the "Book of Yields' (amzn.to/2FcvKwH).
Colin
Chef in the Recipes costing are you not taking the Gas/Fuel consumption and Labour cost to produce that particular Recipe can we add up or else we Can't add up those costs is my Recipe costing please explain in detail
Chef actual yield test of the particular ingredient various on different factors like cuts of vegetables or else meat and methods of cooking , depending upon the season change how can I take the accountability of EY % in my Recipe factor
@@tarasuresh3912 No, this is just for food cost.
@@tarasuresh3912 The EY% from the various charts gives you an average which works for most applications. If you wanted to more accurate, I suggest you perform a yield test on the item having the person who will be preparing the item do the fabrication.
Do you have a template i can download?
Simon Salomon Hi Simon, there are tons of free templates out there, just Google recipe cost card or recipe costing and you should find a variation that would fit your needs. Let me know if you have any other questions!
chef how to take this food cost sheet download my computer that is grate
Hi Sanjeewa, email me (ChefCPR@gmail.com) and I will send you a copy as an Excel template, Colin
You can also go to my website (chefroche.com) and I will post a copy there.
WOW
Thanks chef!
where can i find this form
Hi Keith, email me and I will send you a copy as an Excel template, Colin
You can also get the form in the free mini course at: chefroche.com/course/recipe-costing-made-easy/
Ima fail my final 😪
What class is the final in Chelsea?
@@DrChefColin the class was menu planning unfortunately I did fail the class even before your comment
@@chelseafanreyes1380 Oh no, I am sorry to hear that. If interested, I have an online, self-paced recipe costing course on my website? Here is the link in case you want to check it out - foodmedianetwork.com/course/recipe-costing-made-easy/
If you decide to enroll, you can get the course for half price by using the code SAVE50
Nothing for time/labor to make?
Hi,
I am not sure I 100% understand the question but I am guessing you may be asking if labor cost is factored in when costing out recipes? Please write back and let me know if I misunderstood or if that is the question.
Thanks,
Colin
yes. I was wondering if there was a time element that was in putted into the food cost or a some kind of formula where labor (possibly equiptment needed) and profit was factored.
OK, great question!The short answer is the labor cost gets factored it through what is called the "contribution margin".Now let me try and explain the long answer.
Once you have the cost of the dish calculated by using a recipe cost sheet, you can then figure out a selling price for the dish by dividing the cost of the dish by the food cost % you determine you want to use (i.e. $3.00 cost / 30% FC = $10.00 selling price).
Now that 30% FC means that for every dollar that is brought in with sales, 30 cents of it would go to paying for the food on that plate. This would also mean that you have 70 cents of every dollar left over to pay for other things, and this is know as contribution margin (Sales - food cost = contribution margin).Now that 70 cents (CM) would then be used to pay for labor cost and overhead costs, leaving (hopefully) a little bit left over for profit.Therefore, this is where the time / labor gets factored in, as well as things like rent/mortgage, utilities, advertising, etc. However to really visualize the labor costs and overhead, one would want to look at the income statement, but that of course would be in another video I have yet to make!I hope that helps?Colin
Playback speed 1.25... Anyone else?
Just like in a classroom, some students grasp things quicker than others, therefore play the video back as fast as needed!
You skipped a step by explaining 16 to formulate!
Hi Zahra, let me know which step I skipped so I can double check it, thanks
Change to metric, it 2018.
Hi Brendan, thanks for the comment.
Out of the two common measurement systems used in the commercial kitchen in this country, the metric system is definitely the easiest; however, for better or worse, US Standard is the one often used the most. Therefore, in order to help the most people possible understand recipe costing, I choose to make the video using US Standard. But maybe remaking it using the metric system is a possibility for a future video! (As a side note, I believe the United States is one of only three nations (along with Liberia and Burma) that have not adopted the metric system as their official system of weights and measures!)