How to Find Your Cost Per Unit
Take the total price from your distributor invoice and divide by the total quantity in the package.
Example: 40 lb case of chicken breast at $68.00 = $1.70/lb = $0.106/oz. A 6 oz portion costs $0.64.
For produce sold by count (e.g. avocados), divide the case price by the number of pieces. For items you use partially (e.g. herbs), divide the package price by the total yield weight after trim.
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Frequently Asked Questions
How do you calculate recipe cost?
Recipe cost = sum of (quantity used × cost per unit) for each ingredient, divided by number of servings. For example: 6 oz chicken at $0.35/oz = $2.10, plus 2 oz sauce at $0.18/oz = $0.36, plus garnish $0.25 = total recipe cost $2.71 for 1 serving.
What should I include in recipe cost?
Include every consumable ingredient: proteins, produce, dairy, sauces, oils, spices, garnishes, and any other food item that goes into or onto the plate. Do not include labor, overhead, or non-food supplies in recipe cost — those are separate cost categories.
How do I find my cost per unit for each ingredient?
Take the total price you paid for the item from your distributor invoice and divide by the total quantity. For example, a 40 lb case of chicken breast at $68.00 = $1.70/lb or $0.106/oz. Do this calculation for each ingredient using your current invoice pricing.
How often should I recalculate recipe costs?
Recalculate whenever your distributor prices change significantly — particularly for proteins, dairy, and produce, which fluctuate frequently. Many operators recalculate recipe costs quarterly or whenever their food cost percentage moves more than 2 points from target.