How do we determine the plate cost of the Biryaaniwala menu?

The plate cost of the Biryaaniwala menu

Determining the plate cost of the Biryaaniwala menu involves calculating the ingredients used for each dish and adding associated costs to understand the overall expense. Here’s a step-by-step guide:

Steps to Determine Plate Cost

  1. List All Ingredients for Each Menu Item
  • Identify Ingredients: Make a detailed list of all ingredients required for each dish on the menu.
  • Specify Quantities: Note the exact quantity of each ingredient used in a single dish serving.
  1. Determine the Unit Cost of Each Ingredient
  • Purchase Price: Find out the cost of each ingredient per unit (e.g., kilogram, litre, piece).
  • Include Variability: Consider any price variations due to seasonality or supply chain issues.
  1. Calculate Ingredient Cost Per Serving
  • Cost Per Ingredient: Multiply the quantity of each ingredient used by its unit cost to get the cost per ingredient for one serving.

Cost Per Ingredient=Quantity Used × Unit Cost

  • Total Ingredient Cost: Sum up the cost of all ingredients used in one dish serving.
  1. Include Additional Costs
  • Packaging Cost: Add the cost of packaging materials if applicable, especially for takeout and delivery items.
  • Labor Cost: Calculate the labour cost involved in preparing the dish. This can be done by determining the hourly wage of kitchen staff and estimating the time taken to prepare one serving.
  • Overhead Cost: Allocate a portion of overhead costs (utilities, rent, etc.) to each dish. This can be calculated by dividing total monthly overhead costs by the number of dishes served.
  1. Calculate the Total Plate Cost
  • Sum of All Costs: Add the total ingredient cost, packaging cost, labour cost, and overhead cost to determine the total plate cost for each menu item.

Total Plate Cost=Total Ingredient Cost+Packaging Cost+Labor Cost+Overhead Cost

Example Calculation

Let’s assume we are calculating the plate cost for a Chicken Biryani serving:

  1. List Ingredients and Quantities:
    • Rice: 200 grams
    • Chicken: 150 grams
    • Spices: 10 grams
    • Oil: 20 ml
    • Garnishes: 5 grams
  2. Determine Unit Costs:
    • Rice: ₹50/kg
    • Chicken: ₹200/kg
    • Spices: ₹500/kg
    • Oil: ₹100/liter
    • Garnishes: ₹300/kg
  3. Calculate Ingredient Cost Per Serving:
    • Rice: 200g×1000g₹50=₹10
    • Chicken: 150g×1000g₹200=₹30
    • Spices: 10g×1000g₹500=₹5
    • Oil: 20ml×1000ml₹100=₹2
    • Garnishes: 5g×1000g₹300=₹1.5

Total Ingredient Cost = ₹10 + ₹30 + ₹5 + ₹2 + ₹1.5 = ₹48.5

  1. Include Additional Costs:
    • Packaging Cost: ₹5
    • Labor Cost: Assume ₹100/hour, and it takes 10 minutes (1/6 hour) to prepare one serving: Labor Cost=6₹100≈₹16.67
    • Overhead Cost: Assume monthly overhead is ₹50,000 and the restaurant serves 5,000 dishes per month: Overhead Cost per Dish=5,000₹50,000=₹10
  2. Calculate Total Plate Cost: Total Plate Cost = ₹48.5 (ingredients) + ₹5 (packaging) + ₹16.67 (labor) + ₹10 (overhead) = ₹80.17

Therefore, the plate cost for a Chicken Biryani serving is ₹80.17.

By accurately calculating the plate cost for each menu item, Biryaaniwala can price their dishes appropriately to ensure profitability while maintaining quality and customer satisfaction.

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