MENU COSTING BASICS

Understand the real cost behind each menu item.

This free guide walks through the fundamentals of menu costing, including usable ingredient cost, portion cost, food-cost percentage, and contribution margin. It includes a complete worked example, common mistakes to avoid, and a practical checklist you can use to begin reviewing your own menu.

What you will learn

  • How to calculate usable ingredient cost

  • How to calculate portion cost

  • How to calculate food-cost percentage

  • How to calculate contribution margin

  • Which common costing errors to avoid

What is inside

  • Essential formulas

  • Worked grilled-chicken-sandwich example

  • Visual margin breakdown

  • Common mistakes

  • First-review checklist

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Labor Cost Basics