Using Templates for Recipe Costing and Inventory Linking

Seasoned restaurateurs know that keeping strict tabs on food costs is key to promoting a healthy restaurant profit margin. Knowing how to cost out dishes to build menus and calculating ideal food cost percentages are essential factors for success. As a refresher, recipe costing is the process of breaking down each menu item into its individual ingredients and then figuring out those ingredients' costs. When totaled, the ingredient costs comprise the total food cost of a menu item. And when compared to the item's sale price, it offers the best measure of profitability: food cost percentage.