Key Takeaways
- Recipe costing tells you the true cost and margin of every dish.
- Comparing theoretical vs actual consumption reveals wastage and theft.
- Daily or weekly stock counts for high-value items are essential.
Small leakages in portioning, wastage and purchasing add up to big losses. Inventory software linked to the POS makes food cost visible.
Recipe costing
Define each dish's ingredients and quantities. When ingredient prices change, the software updates dish cost and margin automatically.
Inventory flow
- Purchase orders and goods receipt
- Stock issue to kitchen or outlets
- Automatic deduction based on recipes when items are sold
- Wastage logging
- Physical stock counts
- Variance report: theoretical vs actual
Key reports
| Report | Insight |
|---|---|
| Food cost % | Overall efficiency |
| Dish margin | Menu engineering decisions |
| Variance | Wastage, portioning, theft |
| Reorder | What to buy and when |
Menu engineering
Combine popularity and margin data to decide which dishes to promote, reprice or remove.
See restaurant POS features and inventory management software.
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Frequently Asked Questions
What is recipe costing?
Calculating the cost of a dish from the quantities and prices of its ingredients.
How can restaurants reduce food cost?
By recipe costing, portion control, tracking wastage, comparing theoretical and actual usage, and planned purchasing.
What is a good food cost percentage?
It varies by cuisine and format; track your own and aim to improve it consistently.
Can inventory link to POS sales?
Yes, recipe-based deduction updates stock automatically when items are sold.
