Why is it easy to lose money to bake private houses or start a restaurant?
Many people think they're making good cakes, and friends encourage them to start selling their own house in the circle of friends, and then they spend a month trying to figure out: they don't make any money, they even put a charge on electricity! It's usually because it's right. Food Cost Accounting is too broad.
The supermarket flower, 42 bucks, buys a 200-gram import butter. It says in the recipe, "All you need is a little bit of butter." 120 grams. Many people do cost accounting, and they think it's not working, and the cost is probably “$1000”. But if we use ours,
Spectrum Cost Calculator
Exact calculation:
(42 ÷ 200) × 120 = 25.2 Dollar
。 Butter alone is worth 25 bucks!
Know the real single cost (Cost Per Serving)
The core logic of the recipe calculator is: The unit price of the food purchased is obtained and multiplied by the actual weight consumed in the formulation.
The combination of all the ingredients in the formulation (flour, sugar, eggs, even packaging containing wear and tear) results in the [total cost] of the entire formulation. But it's not over. If this paste can bake it out, Twelve cookies, you need to divide the total cost by twelve to get the exact amount. That's the core benchmark of your pricing.
“Gold pricing formula” for the catering industry
I know how much a cookie costs. How much do I sell? Eight dollars, three bucks, and it's a big deal? It's a mistake!
There is a recognized bottom line in the mature catering and physical bakery industry: Food Cost Percentage cannot exceed 30% to 35% of the sale price.
Standard selling formula = cost of single food items ÷ 0.3 (or 0.35)
Why is it only 30% cost? Because the rest of the 70% is not the net profit of falling into your pocket! This... 70%. The gross profits needed to be paid: extremely expensive Rental Man Wages / The costs of utilities, depreciation of equipment, marketing costs and unavoidable consumption of food items have expired. After all these fixed expenses, the net profit left by a successful restaurant is usually only 10% to 15%.
So if this tool helps you figure out that the single cost of cookies is $5, the system will give you a "recommended sale price" for this.
5 ÷ 0.3 = 16.6 Dollar
。 You can lower it properly because of the high rent. 40%)。 It is a good habit to use this tool every time you develop new foods, as a first step towards making a profit from your food start-up.