← Glossary

Recipe Costing

The process of calculating the per-portion cost of a recipe by accounting for every ingredient and yield.

Recipe costing goes beyond raw ingredient prices to factor in yield loss (trim, cook shrink), portion sizing, and any prep steps that alter usable quantity. A standard recipe costing sheet includes the ingredient name, unit of measure, purchase price per unit, quantity used in recipe, yield %, edible portion cost, and total ingredient cost per portion. MenuMargin AI extracts this data from uploaded recipes and supplier invoices, automatically applying yield factors common to beef (28–30% trim), chicken (25–30% trim), and produce (10–20% trim).

Related terms

  • Plate Cost — The total ingredient cost for a single prepared menu item, calculated from the cost per ingredient portion.
  • Yield Percentage — The ratio of edible portion weight to as-purchased weight, expressed as a percentage. Critical for accurate plate costing.
  • Invoice OCR — Optical Character Recognition applied to supplier invoices to extract line-item data for automated costing.

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