1. What is Portion Cost Calculation?

Portion cost calculation is a fundamental catering service metric that determines the cost per serving by dividing the total cost by the number of portions. This helps in pricing, budgeting, and cost control for food services.

2. How Does the Calculator Work?

The calculator uses the simple portion cost formula:

Where:

• Total Cost — Complete expense for the food item or menu (in USD)
• Number of Portions — Total servings prepared from the given cost

Explanation: This calculation provides the exact cost per serving, which is essential for menu pricing and profitability analysis.

3. Importance of Portion Costing

Details: Accurate portion costing is crucial for maintaining food cost percentages, setting menu prices, controlling inventory, and ensuring profitability in catering operations.

4. Using the Calculator

Tips: Enter total cost in USD (include all ingredient and preparation costs) and the number of portions you plan to serve. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Should I include labor costs in the total?
A: For comprehensive costing, yes. Include all direct costs associated with preparing the portions for accurate pricing.

Q2: How does portion size affect cost?
A: Larger portions increase cost per serving, while smaller portions decrease it. Standardize portion sizes for consistency.

Q3: What's a good portion cost percentage?
A: Typically 25-35% of menu price, but varies by establishment type and location.

Q4: How often should I recalculate portion costs?
A: Whenever ingredient prices change significantly or you modify recipes.

Q5: Can I use this for beverage costing?
A: Yes, the same principle applies to beverages and other per-unit cost calculations.