How plate costing works
Every ingredient is priced from the way you buy it. A 10 lb case of ground beef at $42 costs $4.20 per pound, so a 6 oz patty costs $1.58. Add up every ingredient in the recipe, divide by the number of portions it makes, and you have the cost per portion. Divide that by the menu price for the dish’s food cost percentage.
Two details make plate costs honest. First, use the yield column for anything you trim, peel or cook down: if only 80% of a case of romaine makes it to the plate, the usable lettuce costs 25% more than the invoice suggests. Second, include the small stuff — oil, seasoning, garnish, sauces and to-go packaging — because it adds up across hundreds of covers.
Period food cost vs. plate cost
Plate cost is the theoretical cost of a dish made exactly to spec. Period food cost is what actually happened: cost of food sold divided by food sales. The gap between the two points to waste, over-portioning, spoilage, theft or recipes that drifted. Tracking both, using inventory counts taken the same way each period, is how operators find out where margin is going.
Ways to lower food cost
- Re-cost recipes whenever supplier prices change, and adjust portion specs or prices if needed.
- Use yields from your own kitchen rather than generic tables.
- Cut spoilage by ordering to par and rotating stock; the inventory carrying cost calculator shows what excess stock costs to hold.
- Compare case prices on a per-unit basis with the unit price calculator, including freight.
- Look at surplus and closeout lots for shelf-stable ingredients and supplies. Browse surplus food and beverage inventory from independent sellers, and check dates and storage requirements before you buy.
Sitting on too much stock?
If costing reveals ingredients you over-bought or no longer use, selling them before they expire recovers cash and storage. You can list surplus food inventory and talk directly with buyers, and our guide to selling surplus food covers pricing and documentation.