Recipe Costing

Recipe costing involves calculating the total cost of making a dish by adding up the expenses of each ingredient and related overheads. This process typically includes ingredient prices, quantities used, labor costs, and any other expenses like utilities or packaging. Understanding recipe costing is essential for restaurants and food businesses to set appropriate menu prices, manage budgets, and ensure profitability. By knowing the cost per dish, businesses can make informed decisions about pricing and menu planning to align with their financial goals while keeping offerings competitive.