Recipe Analyzer shows the percentage you are in or out of the money by recipe.
Here is the calculation we use: Current Food Cost % - Target Food Cost % divided by Target Food Cost %. If you use margins instead of food cost % we will use that too.
This report answers such questions as, “What do I make the most money on?”, and “Are my recipe food costs in line with my budget.”
Pay attention to the thumbs up/down column which shows your recipe percentage as compared to the Target Food Cost Percentage.
This column shows which recipes are above or below your target. By identifying these items, you can highlight the ones with a lower Food Cost, increasing your profits.
With recipes above the target percentage, you can analyze your cost structure to bring the profitability back into line.
In the example below you are 22.22 % "in the money"! This is good!
How did we get that number? We took your current food cost % of 35% minus your target of 45% and divided that result by 45% (your target).