Recipe costing for a US menu: food cost per portion
Food cost is the cost of the ingredients in one portion, divided by its menu price. It is worked out from a recipe card, not from feel. This guide shows how to cost a dish with a full recipe card, illustrative figures, and a way to set targets for each menu category.
The formula, in short
- List every ingredient at its net weight, exactly as it lands on the plate.
- Divide the purchase price by the unit of measure, then multiply by the weight on the recipe card.
- Add technical loss: what is trimmed, peeled or cooked away.
- Add up every line. The total is the production cost of one portion.
- Divide the production cost by the menu price before sales tax: food cost % = cost ÷ net price × 100.
Worked recipe card: carbonara for one US portion
Recipe card with weights, purchase prices and plated cost
| Ingredient | Net weight | Purchase price | Plated cost |
|---|---|---|---|
| Spaghetti | 4 oz | $2.20/lb | $0.55 |
| Pancetta | 2 oz | $12.00/lb | $1.50 |
| Egg yolks (2) | 1.4 oz | $0.30 each | $0.60 |
| Pecorino Romano | 1 oz | $26.00/lb | $1.63 |
| Pepper, salt, oil | — | — | $0.20 |
| Total raw materials | 8.4 oz | — | $4.48 |
| Final cost (incl. 5% technical loss) | — | — | $4.70 |
What the example tells you
The menu price is $17.00. In most US states sales tax is added at the register on top of the menu price, so compare against $17.00. Confirm the rule for your state with your accountant.
Food cost = 4.70 ÷ 17.00 = 27.6%, meaning $4.70 of every $17.00 goes on ingredients.
27.6% is a figure to test against your own target, not a benchmark. If it climbed above 35%, you would have three options: raise the price, cut the portion, or change supplier for the costliest ingredient. Here, pancetta and pecorino together make up about 70% of the raw cost.
Yield matters more than the invoice price
Example: you buy beef tenderloin at $12.00 per pound. After trimming, about 12.5 oz of each pound is usable, a 78% yield.
The real cost of the meat on the plate is not $12.00 per pound but $12.00 ÷ 0.78 = $15.38 per usable pound. A recipe card that ignores yield understates the meat cost by about 22%.
Table: setting a food cost target by category
How to set a food cost target for each menu category
| Category | How to set the target | What drives the result |
|---|---|---|
| Alcoholic drinks | Work back from your pour size and average price | Pour size and discipline behind the bar |
| Coffee and hot drinks | Track milk, cups and syrups as separate lines | The milk and the cup, not the coffee |
| Pasta and pizza | Set it from portions you have weighed | Weighing portions instead of estimating them |
| Meat and fish dishes | Use measured yield, not the invoice price | Trim and cooking yield |
| Soups and sides | Set it against the menu average | They balance the average across the menu |
| House desserts | Include the labor time in the recipe | Labor time, which is often left out |
What US rules mean for food costing
- The recipe card is the internal record behind the ingredient list, and so behind the allergen information you give guests.
- Packaged foods must declare the nine major allergens under US labelling law. For dishes served on site, check with your local health department what must be disclosed.
- Sales tax is set by state and locality. Confirm with your accountant whether your menu prices include tax before you set a food cost target.
- When a recipe change alters an allergen, update the menu you show guests straight away.
Common mistakes
- Mixing a tax-inclusive price into a net calculation, which makes the result look lower than it is.
- Using the gross weight from the supplier invoice instead of the net weight on the plate.
- Forgetting the side, the sauce and the packaging. Those three lines add up quickly.
- Updating the recipe card once a year, although purchase prices change every month.
How 4restaurants.net helps
- Every dish has a recipe card with weights, and the production cost is calculated from it.
- Net weights on the recipe card let trimming enter the calculation correctly.
- The QR digital menu is linked to the recipe cards with weights, in the same application.
- Food cost shows for each dish, next to the reports by dish.