The main sector of cost monitoring is the one called recipe analysis. This procedure focuses on accuracy and defines the selling price strategy among making clear the profit margins and many administrational decisions.
When someone wants to proceed with an accurate and rational recipe analysis, they should get from each Chef correct figures. Chef should first test each ingredient, weigh them all up and taste each recipe, in order to be able to present secure data and figures. In case of being not accurate may lead to mistaken results and wrong cost view with all the consequences that follow.
The first thing to do is to open Microsoft Excel spreadsheets and begin with the procedure. We have to point out again that this procedure should be done by professionals and people with experience, in order to get the correct outcome without any doubts. Here, we will try to provide some basic steps, which we have to admit, are not certain that will occur the perfect outcome, since many factors may influence the final result that cannot be aware of.
The Excel file consists of 4 spreadsheets. The initial referred to index, where all recipes are being presented briefly, just by name and cost. When all finished, an average cost can be displayed at the end of the current column. Next sheet refers to the actual “body” of each recipe, where the name is the initial part and the portions at the next cell. Below, we start inputting the ingredients among unit, quantity, unit price, total price at the following cells. The same applied for the following lines. Since we are finished with all ingredients, we add the final price of the recipe. Next, we add 2% increase, which refers to seasoning and all power that needs, in order this portion to be produced. Portion cost is the final line and consists of the final recipe cost (including 2%) divided by the number of the portions that were added initially.
At the next sheet we put the sub-recipes, where a sauce, a broth, a productive procedure needs to be analyzed and is a main ingredient for a recipe. We have to clarify the following: while we analyze the sub-recipe, at the same cell that the use the number of portions, here we apply the output that this sub-recipe provides at the appropriate unit (liter, kilo etc.), so we can input that accurate quantity at our main recipe table.
Finally, at the 4th sheet we need to apply our database, which means all items that have been bought, need to be registered, presented and divided per supplier, with correct units and prices. When a certain package of 800gr is the chosen one needed and for example, we need just 150gr of it, the correct reduction must be done, in order to adapt the price depending on the desirable quantity.
Recipe analysis is defined as the core of the accurate cost monitoring and policies outcome, because it determines all the actions and predictions for any correction or administrational decision.