Food costs and fixed costs in the recipe

Hi guys I don’t find this info in the forum:

I create the warehouse, the product list and the inventory Item List
I’m now creating the recipes and I have 2 questions.

  1. It is possible to insert the fix cost in %?
  2. One’s the recipe is created, It is possible to see the total cost of the recipe and the food cost and fixed costs in %?

Not like your thinking. SambaPOS calculates cost based on portion. Its best to use reports for that.

I mean for portions, the recipe is made for one portion.

How support to work the fixed cost in the recipe?
I don’t know how much will be the fix costs the single recipe, what I know is the fix cost in % of turnover.

In version 5 we have improved report tags for building reports about inventory. However that said SambaPOS will not calculate cost on the fly but you can get a decent idea of cost after WP closed and End of Day Reports filled out.

Sorry but I don’t understand.
In the recipe there is a space where I can insert the Fixed costs, to which fixed costs is it referred ?

Typed a forum search for Fixed Cost Recipes and it showed this.

Thanks Kendash
My main think it was to find out, if I have to still use Excel for create the recipe cost card for each product.
It is double job that’s why.
In Samba when we create the recipe, we insert already the Qty of the inventory Items used, if we can insert also the fixed cost % (calculate on the selling price) and we can see the totals the Job is done and
the Recipe cost card is done.

Well its hard to really do that in restaurant world. Its always just an average never exact. Emre simplified these things because of that reason. However with version 5 you can do something like what your asking using some new report tags. Version 4 will not get any future updates any more because of version 5 being the now current version.

PS: If you wanted to try version 5 for free you can install it on a test machine somewhere and try it out for free. It will work unlimited for 500 tickets and after 500 tickets it still works unlimited it just displays an annoying popup on every order added until you purchase and activate a license. But it would be a good way for you to try it and see if its worth it for you.

Sorry I couldn’t understand the reason of adding %x of selling price to product cost… Will you leave recipe empty and just assume %x of price is cost?

Hi Emre
Every restaurant for each product have to produce the recipe cost card.
To be complete we should have food cost - fixed cost - profit.

If last year my restaurant turnover was 1.000.000 and I have 300.000 of fixed costs that’s mean my fixed cost in the restaurant is 30%.

Angus Beef Carpaccio
selling price: 12$
Fixed costs 30%
Qty Unit Unit cost total
Australian Angus Beef 0.1 Kg. 25 2,5
Olive Oil 0.03 Lt. 6 0,18
Parmigian Cheese 0,05 Kg. 15 0,75
Total 3,43$

Total food cost 3,43 29%
Fixed costs 3,6 30% (fixed)
Profit 4,97 41%

Every restaurant have this Card, usually produced from the Chef.
We usually said to the Chef which is the range of food costs we want in the restaurant.
If we decide is 30% the Chef know for each new receipt he created he have to check the way to don’t go over 30% food costs and the owner know is profit in the end of the year will be around 40% of the total.

This Job in Samba Pos is already made for the 80% when we create the recipe, so why don’t show the totals and the possibility to print this Card?

Like I said at the moment I’m doing this Job using Excel.

Fixed cost is your utilities, bills, etc? Or is it a franchise fee? So basically what your saying is you are taking 30% from every recipe? So you adjust your price based off food cost + fixed cost so you can turn a profit?

Fixed costs is salaries, bills electricity etc, food for the staff, adverting tax… al the costs except food costs.

I dont understand though… how do you get a % for that? 30% of what? How do you know that 30% of the price will be enough to pay those bills?

Can you show your formula your using is what I am asking.

What if you sell 700,000 one year but prices were same… that fixed cost suddenly is higher… how do you compensate for that?

EDIT Your probably using a formula similar to FC=Food Cost X=Item Price so

((30/100)+(FC/100)=X)/100 ?

Usually on the account of last year we created the budget for the year after.
If last year my turnover was 1.000.000$ and the total of fixed costs it was 300.000 My average fixed costs for the next year will be 30%.

I understand that logic but that can be dangerous way to operate food business that’s just my opinion though. It works ok for retail which have more predictable patterns but food costs change so rapidly.

How do you expect emre to calculate that in a recipe for you? Can you explain what you expect to happen with a recipe so it calculates that? If he gives you a spot to insert Fixed Cost what do you expect to happen with it?

Hi Kamndash
This is the way most used in the restaurant business.
I worked with top Chefs, the Chef have to know only the food cost in % and the rest come consequently.
The excel paper I used is the one they use in the top hotels restaurants for calculate the selling price of the food product.
The food cost don’t change so rapidly, the food cost the suppliers try to keep the same during the year/season and in any case at least every 6 months the menu’ have some changes and the prices can be revise.

What need is only to insert the fixed cost in % and show the totals.

If this year instead of 1.000.000 my turnover is 700.000 and the fixed costs is 300.000 that’s mean the fixed costs became 43% and the profit is reduced to 27%.
But this is another point, and I have to ask to myself why this year I reduce the turnover of 30%.

But every business badged is based on the year before.

So how do you recommend it be calculated?

So if they need to know food cost then why would you need to put Fixed Cost in recipe?