Food Costing

Food costing is the process of calculating the total expenses involved in preparing a dish or menu item. It includes the price of ingredients, portion sizes, and other costs like labor and overheads. The goal is to determine how much it costs to produce each item, so businesses can set appropriate selling prices, ensure profitability, and control expenses. Accurate food costing helps restaurants and food vendors manage their budgets, minimize waste, and offer competitive prices while maintaining quality. It’s an essential tool for effective financial management within the food service industry.