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Guidelines for Recipe Costing:

1. Get all the

VALUES you need in a recipe. These would be:

a. The WEIGHTS of all the ingredients in a recipe. Use one kind of metric conversion* as much as possible for accuracy. Example: INGREDIENT white onion, chopped WEIGHT 30 UNIT 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 the

ingredient 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: INGREDIENT white onion AS PURCHASED PRICE (APP) Php 80.00 UNIT kilo

Now, list the ingredient prices in a separate sheet, as a MARKET

LIST. Such list would

be 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 TEMPERATURE and

COOKING 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 portion weight. Example: Total weight = 1000 grams Portion weight = 200 grams Formula: Sample: Summary:

TW = YIELD PW

1000 grams = 5 200 grams

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: Sample: (1000 g 30%) 180 grams 700g = YIELD 180g Summary: YIELD = 3.8 svgs or roughly 4 svgs

(TW 30%) = YIELD PW

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b.

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

c.

SRP / RSP: To get the Standard Retail Price or the Retail Selling Price you would need
the following: i. Food cost ii. Food cost percentage iii. FORMULA:

Food cost = Food cost %

Example:

SRP

Food cost = Php 50.00 per serving Food cost % = 30% Php 50.00 = 30% Php 166.67 or rounded up to Php 170.00

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 200.00 depending on the value of the product being sold.