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Building a costing system

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There are only two parts to a costing system, a fully written recipe and a master list of components. The master list is fairly straightforward and if fully completed you are in a good place. Putting together the recipe is all about getting a few basic formulas written in a spreadsheet. Really spend your time getting the first line of your first recipe correct and off you go.

For each row you will want the code of the item from the master list and how many units you need in your recipe (wet weight or equivalent). A simple lookup formula will then give you the description, the unit of measure and the cost per unit. Put in a formula to multiply units by cost per unit and you have a total cost for that ingredient. Repeat this down for the whole of the recipe and then put in a sum at the top to add all the totals for each ingredient into a recipe cost. Put a recipe title at the top next to the recipe cost and that’s a wrap.

The final stage would be to put 2 formulae on another page that will be split into course (e.g. starter, menu, dessert) . Only two items would be brought across onto this page, recipe title and cost. That is it, nothing harder than that. If you want to get any more fancy than that, you can add extra formulae for margin, price, trade discounts and an indicator to show if it is live on the current menu. Costs do shift and you can copy and freeze original values to compare against the current position.

Any change in your master list will ripple through the recipe sheet and finally onto the cost card. The cost card will be what is used to build your menu prices. A small word of advice here, all menu items should be included, even drinks. If you don’t want to do that, keep a separate sheet with drinks costs and margins.

All of this sounds a lot simpler than it really is and you don’t need to know it off by heart. This is why sample spreadsheets are available from the online resources.

101 Restaurant Secrets

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