What food cost % means
Food cost % tells you how much of your selling price goes into ingredients and packaging. The rest — your gross margin — has to pay rent, salaries, gas, power and profit.
There is no single “correct” number. Cakes, breads and cold coffee each behave differently. What matters is that you know the number for every item and notice when it moves.
Cost a recipe in 5 steps
- List every ingredient — including garnish, sprinkles, oil for greasing, and the box, base or cup it goes out in.
- Use today's purchase price per kg, litre or piece — from your latest supplier bill, not last year's memory.
- Convert to the quantity used. 250 g of chocolate bought at ₹380/kg costs ₹95.
- Add a wastage allowance for trimming, spillage, test bakes and cream left in the piping bag.
- Divide by the number of portions the batch really gives — count the slices, don't assume.
Do this once per size. A half-kg cake is rarely exactly half the cost of a 1 kg cake — the box and decoration don't halve.
Recipe cost calculator
Change any number. Quantities in grams or ml use a price per kg or litre; pieces use a price per piece.
Set the price from the cost
Turn the formula around to find a price that hits your target food cost:
Then add GST as your CA advises and check the final number against what customers in your area will pay. If the market price is lower, fix the recipe or the portion — not your margin.
Common mistakes
- Forgetting packaging. A cake box and base can cost more than the cocoa.
- Using old prices. Cream, butter, chocolate and nuts change price often. Re-cost when they do.
- Counting GST as income. Compare cost with the price before GST.
- Ignoring yield. If a batch “should” give 12 slices but staff cut 10, your cost per slice is 20% higher.
- Costing once and forgetting. Food cost is a number to watch every month, not a one-time sheet.
How LaSha helps
In LaSha, recipes are linked to your raw material master. Purchase prices come from your purchase receipts, so recipe cost updates when prices change.
Recipes / BOM with costing Live
Cost per recipe and per size, from real purchase prices.
Production runs Live
Making a batch deducts the raw material it used.
Purchase orders & receipts Live
Latest supplier prices feed your costing.
Profit Leakage Detector Live
Flags money leaks and unusual patterns for the owner to check.
Recipe & Costing is ₹299/month with a 14-day free trial, or included in Complete LaSha OS at ₹2,999/month. Prices exclude GST. See pricing.