Recipes > How does recipe costing work?

Recipe costing works on the basis that once you ascertain the exact ingredients and their quantities and costs required to produce a recipe, the program can calculate what it actually costs you to produce the recipe, precisely.

Once you have created all of your recipes in Resort Hotel, you only need to update the ingredient prices and Resort Hotel can automatically calculate the latest cost of each of the recipes in the database.

Resort Hotel uses the cost stored with each ingredient to calculate recipe costs. These costs should be updated regularly to maintain accurate costing for each of the recipes maintained by the program.

Resort Hotel saves you the drudgery of hand calculating recipe costs, and puts you in a position to experiment with portion sizes or product pricing to see what effect they may have on your profitability.

The program uses your recipes for menu engineering analysis. This facility lets you determine the best performing dishes (retail recipes) in your menus.

HINTS

•Try and use standard units of measure within your recipes, such as kilograms, litres, pounds etc.

•Try and break complex recipes into sub-recipes. For example within a bechamel sauce, you will have a roux. If you make the roux a separate recipe, you can then insert the roux recipe into other recipes and you only have to create it once.

•Keep your ingredient costs up to date. This will mean that your recipe costing, too, will be kept up to date.

•Enter everything you use within a recipe, into the recipe. Even things such as salt and pepper for seasoning cost you money and should be included.

•Perform batch calculations at regular intervals to ensure your recipe costings are updated with the most recent ingredient prices.