Food cost and selling price: how the calculation works
How Klyra calculates the theoretical food cost of a recipe and helps you set a consistent selling price.
A recipe’s theoretical food cost is calculated by adding up the cost of each ingredient based on the latest purchase price, letting you see straight away how much raw material weighs on each menu item before you even sell it.
How food cost is calculated
Each ingredient contributes to the calculation based on the quantity used and the most recent purchase price recorded in stock, including any sub-recipes with their own internal cost.
From cost to selling price
By setting a target margin or a food cost percentage, Klyra suggests a consistent selling price, which you can then round according to how the venue is positioned.
Theoretical vs actual food cost
The theoretical food cost calculated on the recipe is a reference, but the site’s actual food cost also accounts for waste and losses recorded in stock: comparing the two values helps you understand where margin is lost.
- Theoretical cost per portion
- Suggested selling price
- Target margin set as a goal
- Comparison with the site’s actual food cost
Automatic cost updates
If an ingredient’s purchase price changes after a new delivery, the recipe’s food cost updates accordingly, flagging any dishes that may need a price review.
Cosa trovi in questa guida
- food cost
- recipe costing
- selling price
- margin
- ingredient cost
- theoretical food cost
Passaggi
- Open the recipe sheet and check the linked ingredients
- Check the theoretical food cost calculated per portion
- Set the target margin or percentage
- Check the suggested selling price
- Periodically compare theoretical and actual food cost
- Review the price if ingredient costs change significantly
Problemi frequenti
- Food cost looks too low → an ingredient is missing from the recipe or a quantity is wrong → check every ingredient and quantity
- The suggested price is not realistic for the market → the target margin set is too aggressive → review the percentage against the venue’s positioning
- Actual food cost is much higher than theoretical → unrecorded waste and losses affect the actual cost → check loss records in stock
- A long-standing dish no longer reflects the current cost → an ingredient’s purchase price changed without review → periodically recheck your best-selling recipes
Domande frequenti
Does food cost update automatically when a supplier price changes?
Yes, the recipe’s theoretical food cost is recalculated based on the latest purchase price recorded for each ingredient.
What is the difference between theoretical and actual food cost?
Theoretical is based only on the recipe’s ingredients, while actual also includes waste and losses actually recorded in stock.
Does Klyra suggest a selling price directly?
Yes, based on the target margin or food cost percentage you set, Klyra proposes a consistent selling price.
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