Bill of materials (ingredients) under the microscope
Correctly determining the selling price of a dish requires evaluating all components: the cost of raw materials, the labor cost required to produce it, the contribution that the sale of the dish will make to the company’s financial management to cover fixed costs, and, last but not least, the profit it will generate.
ChefMate displays the cost of raw materials in detail when you enter the ingredients and their weights in the bill of materials.
When you change the price or other data for a product/ingredient, simply click the Update button to load the modified data into all recipes that use the ingredient: the result is immediately available.
Now let’s move on to labor costs. ChefMate uses two alternative methods for this type of calculation. The simplest is the variable coefficient method. It involves assigning a multiplier to the cost of raw materials. The result must cover labor and energy costs. You can choose from five coefficients that you can customize to your needs. The cost of raw materials is multiplied by the chosen coefficient.
Note: This method is a simple evolution of the factor method, which consists of determining a coefficient by dividing revenue by the cost of raw materials. To obtain the selling price, simply multiply the cost of raw materials by the determined coefficient. The method is effective when applied to an entire menu, but for a single dish, it is often very inaccurate. Using multiple coefficients allows for more reliable results.
