Idea or playbook

Menu Item Costing for Cafés and Food Businesses

For: Finance · Difficulty: Beginner

The problem: Ingredient prices keep moving, and you're not sure which menu items still make money.

What you end up with: A simple sheet showing what each menu item costs to make, based on your own recipes and supplier prices, so you can decide on prices yourself.

What you'll need

Your recipes with quantities, recent supplier prices, and your current menu prices.

Getting set up

Do you know what a latte or a sandwich really costs you to make? Let's find out. Google lists Gemini in Sheets, and Microsoft says Copilot works inside Excel, so either can help build and explain the sheet. Then pick your top ten sellers to start with, rather than the whole menu.

Step by step

  1. List each item's ingredients and quantities from your recipe.
  2. Add the latest supplier price and pack size for each ingredient.
  3. Ask the AI to set up formulas for cost per portion.
  4. Check a few items by hand to make sure the formulas are right.
  5. Compare cost with your menu price for each item.
  6. Decide on any changes yourself.
  7. Update supplier prices monthly and recheck.

A prompt to start with

Copy this prompt, then make it your own. "Help me build a spreadsheet for menu costing. For each item, I'll list ingredients, quantity per portion, supplier price, and pack size. Set up formulas for cost per portion and cost as a percent of menu price. Show me the formulas so I can check them. Here's my first item: [recipe and prices]."

What you'll get

A costing sheet with cost per portion and cost percentage for each item.

If something goes wrong

If units don't match, like grams and pounds, add a unit column and ask for conversions. If a result looks off, check the pack size first.

Keep in mind

AI can get units and formulas wrong, so check a few by hand. Leave out waste and labor only if you know you're doing that. Pricing decisions are yours.

Sources

Where each fact came from

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