Recipe-level inventory

Recipe-level inventory takes each ingredient out of stock by its recipe quantity whenever the finished dish is sold, so a burger sale reduces the bun, the patty and the cheese rather than one “burger”.

Each menu item is set up as a recipe of stock items, each with its own unit and cost. A sale deducts every ingredient and records its cost, which gives you the food cost of every plate and an expected on-hand figure to count against.

Worth knowing

• Comparing expected use with a physical count shows waste, over-portioning or loss.
• Allow for cooking and trimming losses in the recipe, or the variance will look worse than it is.
• Modifiers can take their own ingredients, such as the extra slice for “extra cheese”.

General information, not tax or legal advice. Check the official source and speak to a registered tax agent about your own situation.