1. What is Food Cost Per Item?

Food Cost Per Item is a calculation that determines the cost of each individual portion or item when you know the total cost of a batch and how many portions it yields. This is essential for menu pricing and cost control in food service operations.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• Total Cost — The complete cost of preparing the batch (in USD)
• Portions — The number of individual items or servings produced

Explanation: This calculation divides the total production cost evenly across all portions to determine the base cost of each item before markup.

3. Importance of Calculating Food Cost

Details: Knowing your exact food cost per item is crucial for setting appropriate menu prices, controlling food costs, maintaining profitability, and making informed decisions about menu items.

4. Using the Calculator

Tips: Enter the total cost of preparing the entire batch in USD and the number of portions it yields. Be sure to include all ingredient costs in your total cost calculation.

5. Frequently Asked Questions (FAQ)

Q1: Should I include labor in the total cost?
A: This calculator is for food cost only. Labor and overhead are typically calculated separately for complete cost analysis.

Q2: What if portions aren't exactly equal?
A: This calculation assumes uniform portion sizes. For varying portions, you may need to calculate each item separately.

Q3: How often should I calculate food costs?
A: Regular calculation (weekly or monthly) helps track cost fluctuations due to seasonal ingredient price changes.

Q4: What's a good food cost percentage?
A: Most restaurants aim for 28-35% food cost, but this varies by establishment type and menu pricing strategy.

Q5: How do I use this to set menu prices?
A: Once you know food cost per item, apply your desired food cost percentage to determine the selling price.