Recipe Costing – Why it’s important for your business during COVID-19

With some restaurants feeling a downturn in sales volume due to COVID-19 restrictions it’s a perfect time to dust off the recipe book and see how you can bring more to the bottom line.

Step 1

It can be as simple as locating your recipes and comparing them to current invoices to see if the ingredient costs are up to date. If you don’t have recipes built out by line item start there.

Step 2

Divide the total cost of the item by the sales price to see what the food cost is of your recipe. A good rule of thumb is that your recipes should not be over a 30% food cost. If they are in might be time to rethink them.

Step 3

Once you have this, a good practice is to take a Product Mix (a report detailing how much you sell of each item over a date range) and see what items you sell the most of. Ideally, the ones you sell most should have the lowest food cost.

Taking the time to do this can give you some interesting and useful insights into your store.


If you have questions or need help give FLORES a call we have software solutions and accounting staff that are happy to assist. Call us at (619) 588-2411.


This content is designed to assist with your strategy, but it should not be relied on or substituted for company-specific advice from your employment counsel. As you are aware, things are changing quickly and there is no clear-cut authority or bright-line rules. This is not an unequivocal statement of the law, but instead represents our best interpretation of where things currently stand.