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Recipe cost, food cost, portion cost and gross margin. Each note keeps its formula and example on its own page.
- How is recipe cost calculated?
Recipe cost is the sum of each ingredient line. A line is the share of the purchase price used in the recipe. Cost per portion is that total divided by the number of portions.
- How is food cost percentage calculated?
Food cost percentage is the ingredient cost of one portion divided by its selling price. It is not gross margin, and it does not include rent or labour.