Menu Pricing: Part 1 Portion Costs

Menu Pricing: Part 1

Portion Costs

Multiple Choice

To find the total cost of a standard recipe, know both:

_________________________________ needed 

__________________________ of each ingredient

• Ingredient amounts

  Market price

• tools

  amount of ingredient

• way of cooking

  name

Standard Portion Costs

• Standard recipe cost/cost per serving

• Ingredient amounts needed

• Uses market price of ingredients

Multiple Select

You must select 2 answers.

Standard Portion Cost Formula for Packaged Items =     ________________________________

• total purchase price

• number of portions for food item

• individual price

• amount of food needed.

Using the Standard Portion Cost Formula
for Packaged Items

Purchase price per unit
# of portions per unit

Standard Portion Cost Example

Potatoes cost $35 per case
and there are 175 portions in
each case, what is the
standard portion cost?

Answer:

Purchase price per unit
# of portions per unit

$35
175 = $.20

Multiple Select

You must select 2 answers.

Once management sets portion size of their own recipes, portion costs can be determined with the following formula:

______________________ x ________________________________ =  Portion Cost

• portion size

• cost per useable ounce

• ingredient name

• total cost

• cooking method

Portion Cost

Once management sets portion size of
their own recipes, portion costs can be
determined with the following formula:

Portion Size x Cost per Usable Ounce

= Portion Cost

What if I don’t know the

price of each portion?

How do I calculate the cost

of my own recipes?

Multiple Choice

Define Purchase Unit

• Form in which the item is purchased

• A unit of measurement used to measure the cost of an item

• A unit of measurement used to measure the size of an item

• A unit of measurement used to measure the weight of an item

Terms to Know on Cost Form:

PURCHASE UNIT:

Form in which the item is
purchased

Multiple Choice

Define Purchase Cost

• Amount you paid for the purchase unit

• The cost of a product or service before taxes

• The total cost of a product or service including taxes and fees

PURCHASE COST:
Amount you paid for the
purchase unit

SMALL AMOUNTS OF
SALT AND PEPPER

DO NOT NEED purchase costs

Multiple Choice

Define unit cost

• The total cost of a product divided by the number of items sold

• The cost of a single item divided by the total cost of the purchase

• Purchase Cost divided by Purchase Unit

• The cost of a single item divided by the total number of items purchased

UNIT COST=

Purchase Cost
Purchase Unit

Example: $1.29
14

Unit Cost: $0.092/ unit of

measurement**

(Round to nearest .001)

LABEL with correct measurement that matches
measurement being used in the recipe

Ex./oz /lb /ct

per ounce per pound per count

Multiple Choice

Define: Amount Needed

• The total cost of an item

• Amount in specific recipe

• The number of ingredients in a dish

• The quantity of a product to purchase

Terms to Know on Cost Form:

AMOUNT NEEDED:
Amount in specific recipe

Copy directly from the recipe,
change to weight, if necessary

Multiple Choice

Define: Ingredient Cost

• The total cost of all the ingredients used to make a dish.

• The amount of money saved by preparing a dish with fewer ingredients.

• Price per individual ingredient in recipe

INGREDIENT COST
Price per individual ingredient in recipe
UNIT COSTxAMOUNT NEEDED

Units in Amount Needed

& Unit CostMUST MATCH

oz to oz; lb to lb

If needing to switch between units, use

equivalencies

Round to nearest .001

C x D

1. PURCHASE UNIT: A

Form in which the item is purchased

2. PURCHASE COST: B

Amount you paid for the purchase unit

3. UNIT COST: C

Purchase Costdivided byPurchase Unit
Round to nearest .001

4. AMOUNT NEEDED: D

Amount in specific recipe

5. INGREDIENT COST: E

Without dry spices
Unit Costs/Amounts must match
Round to nearest .001

Recap of Recipe Cost Form

Let’s Try It!

Ingredients for 2 servings

Ingredient Cost

Item

Purchase Unit
Purchase

Cost

Unit Cost

(Round to nearest .001)
Amount= Needed
Ingredient Cost
(Round to nearest .001)

Asparagus 1 lb

(=__
oz)

$1.76

8 oz

Olive oil

128 fl
oz
(1 gallon)

$15.67

2 fl oz

Unit cost label must match amount needed label
Ex. lb to oz must change to oz to oz; use equivalencies to match

Let’s Try It!

Ingredients for 2 servings

Ingredient Cost

Item

Purchase Unit
Purchase

Cost

Unit Cost

(Round to nearest .001)
Amount= Needed
Ingredient Cost
(Round to nearest .001)

Asparagus 1 lb

(=__
oz)

$1.76

8 oz

Olive oil

128 fl
oz
(1 gallon)

$15.67

2 fl oz

$.110/oz

$0.880

$.122/fl oz
$0.244

Unit cost label must match amount needed label
Ex. lb to oz must change to oz to oz; use equivalencies to match

Let’s Try It!

Ingredients for 2 servings

Ingredient Cost

Item

Purchase Unit
Purchase

Cost

Unit Cost

(Round to nearest .001)
Amount= Needed
Ingredient Cost
(Round to nearest .001)

Garlic

4 oz

$.75

.17 oz (2 cloves)

Salt

N/A

N/A

TT

Pepper

N/A

N/A

½ t

Parmesan cheese

8 oz

$3.99

1 oz

Unit cost label must match amount needed label
Ex. lb to oz must change to oz to oz; use equivalencies to match

Let’s Try It!

Ingredients for 2 servings

Ingredient Cost

Item

Purchase Unit
Purchase

Cost

Unit Cost

(Round to nearest .001)
Amount= Needed
Ingredient Cost
(Round to nearest .001)

Garlic

4 oz

$.75

.17 oz (2 cloves)

Salt

N/A

N/A

N/A

TT

Pepper

N/A

N/A

N/A

½ t

Parmesan cheese

8 oz

$3.99

1 oz

$.188/oz

$0.880

Part of MU

Unit cost label must match amount needed label
Ex. lb to oz must change to oz to oz; use equivalencies to match

Part of MU

$.499/oz

$0.499

Are you ready for more??

Recipe Cost Practice

Work at your tables to complete
unit costs and ingredient

costs only at this point

Next Step:

Portion Cost

Subtotal (Round to nearest .001)

$ F

Q factor: 1% for small amounts of salt and pepper (Round to nearest .001) $

Total Recipe Cost (Round to nearest .001) $8.254

Portion Cost (Round to nearest .001) $

Subtotal (Round to nearest .001)

$ F

Subtotal (Round to nearest .001) $ 8.172

Subtotal (Round to nearest .001) $ 8.172

Q factor: 1% for small amounts of salt and pepper (Round to nearest .001)

$ 0.082

Subtotal (Round to nearest .001) $ 8.172

Q factor: 1% for small amounts of salt and pepper (Round to nearest .001) $ 0.082

Total Recipe Cost (Round to nearest .001) $8.254

Subtotal (Round to nearest .001) $ 8.172

Q factor: 1% for small amounts of salt and pepper (Round to nearest .001) $ 0.082

Total Recipe Cost (Round to nearest .001) $ 8.254

Portion Cost (Round to nearest .001) $4.127

Calculating Portion Costs

Total Recipe Cost

1% markup for small amounts of dry

herbs/spices

(Q factor)

(Multiply recipe cost by .01)

Total Recipe Cost

Portion Cost

(Divide recipe cost w/mark-up

by number of servings in recipe rounded to the cent)

$2.105

$2.126

$0.021

$1.063

◻ No more than 5 main ingredients

■ Dry herbs and spices do not need to counted

towards your 5 but will need to be calculated

◻ Have your recipe approved and then complete:

� Recipe Template

� Grocery Order

Ingredient Cook-Off