How to Accurately Calculate Food Costing and Portions in Restaurants 

How to Accurately Calculate Food Costing and Portions in Restaurants 

Food costing and portion control are essential for maintaining profitability and consistency in your restaurant. This guide will help you accurately calculate food costs and manage portion sizes.

1. Break Down the Recipe Ingredients

Start by listing all the ingredients used in each dish on your menu. This breakdown should include every item, from the main components to minor additions like spices and garnishes.

  • Example: For a chicken pasta dish:
    • Chicken breast, pasta, olive oil, garlic, tomatoes, basil, Parmesan cheese.

2. Determine the Cost Per Unit of Each Ingredient

To accurately calculate food costs, determine the cost per unit of each ingredient based on purchase prices from your suppliers.

  • Example:
    • Chicken breast: R90 per kilogram.
    • Pasta: R40 per kilogram.
    • Olive oil: R150 per liter.

3. Calculate the Cost of Each Ingredient Per Portion

Next, calculate how much of each ingredient is used in a single portion. Multiply this quantity by the cost per unit to determine the cost per portion for each ingredient.

  • Example:
    • Chicken breast: 0.25 kg per portion = R90 * 0.25 = R22.50.
    • Pasta: 0.2 kg per portion = R40 * 0.2 = R8.00.
    • Olive oil: 0.05 liters per portion = R150 * 0.05 = R7.50.

4. Sum Up the Total Food Cost Per Portion

Add the costs of all the ingredients used in the portion to get the total food cost for that dish.

  • Example:
    • Chicken: R22.50
    • Pasta: R8.00
    • Olive oil: R7.50
    • Other ingredients (e.g., garlic, tomatoes, basil, Parmesan): R5.00
    • Total food cost per portion = R22.50 + R8.00 + R7.50 + R5.00 = R43.00.

5. Set Your Desired Food Cost Percentage

The food cost percentage is crucial for setting the selling price. Typically, restaurants aim for a food cost percentage between 25% and 35%.

  • Formula: Selling Price = Total Food Cost / Desired Food Cost Percentage.
  • Example: If your total food cost per portion is R43.00 and your desired food cost percentage is 30%:
    • Selling Price = R43.00 / 0.30 = R143.33.

6. Adjust for Waste, Spoilage, and Overheads

Account for potential waste, spoilage, or shrinkage during food preparation. Additionally, consider other costs like labor, rent, utilities, and marketing when setting your final price.

  • Example: If you anticipate a 10% waste factor:
    • Adjusted food cost = R43.00 / (1 – 0.10) = R47.78.
    • New Selling Price = R47.78 / 0.30 = R159.27.

7. Maintain Consistent Portion Control

Consistency in portion control ensures that every plate has the same amount of food, which maintains cost consistency and meets customer expectations.

  • Tips:
    • Use Kitchen Scales: Accurately measure ingredients to ensure consistent portion sizes.
    • Portion Scoops: Use standardized scoops or ladles for serving.
    • Training: Ensure kitchen staff are trained to follow standardized recipes and portion sizes.

8. Regularly Review and Update Costs

Ingredient prices can fluctuate, so it’s essential to review and update your food cost calculations regularly. This helps you maintain profitability even as market conditions change.

  • Tips:
    • Monitor Supplier Prices: Keep track of changes in supplier prices to update your food costs.
    • Menu Pricing: Periodically reassess your menu prices based on updated costs.
    • Menu Engineering: Analyze which dishes are most profitable and consider adjusting your menu to highlight these items.

Additional Tips for Food Costing and Portion Control

9. Bulk Buying and Supplier Negotiation

Buying in bulk or negotiating with suppliers can reduce your ingredient costs.

  • Example: If you negotiate a 10% discount on olive oil when buying in bulk:
    • New olive oil cost: R150 – 10% = R135 per liter.
    • Cost per portion = R135 * 0.05 = R6.75.
    • This small saving can make a significant difference in overall profitability, especially for high-volume dishes.

10. Seasonal Ingredients

Use seasonal ingredients to take advantage of lower prices and fresher produce.

  • Example:
    • Tomatoes might cost R20 per kilogram in summer but R35 per kilogram in winter.
    • Planning your menu around seasonal ingredients can keep costs down and offer fresher options to customers.

11. Menu Optimization

Regularly analyze your menu to identify high-cost, low-margin items. Consider adjusting portion sizes or pricing, or even removing less profitable dishes.

  • Example: If a dish with a R43.00 food cost is selling for R100 (43% food cost percentage), consider increasing the price or adjusting the portion size to improve margins.

12. Implement Inventory Management Systems

Use inventory management software to track ingredient usage, minimize waste, and reorder supplies efficiently.

  • Example: A system that alerts you when stock is low can prevent overordering or understocking, both of which can negatively impact your food costs.

Conclusion

Accurately calculating food costs and managing portion sizes are crucial for the financial health of any restaurant. By following these steps and tips, you can ensure your restaurant stays profitable while delivering consistent, high-quality dishes to your customers. Regularly updating your food cost calculations, optimizing your menu, and maintaining portion control are key to long-term success in the competitive restaurant industry.

Categories