Recipe Costing
Learn how to build recipes and understand your true food costs with Tally's automated costing system.
Building Your First Recipe
Step 1: Create Your Recipe
Build recipes with ingredients and quantities
- Enter the recipe name and description
- Add all ingredients with specific quantities
- Set the number of servings the recipe makes
- Include preparation time and difficulty level
Step 2: Add Ingredient Quantities
Specify exact amounts for accurate costing
- Use consistent units (cups, pounds, ounces, etc.)
- Include waste factors for ingredients that lose weight
- Account for preparation losses (trimming, peeling)
- Set portion sizes for individual servings
Step 3: Link to Current Prices
Connect ingredients to your vendor prices
- Match ingredients to products from your invoices
- Use the most recent prices for accuracy
- Set up price alerts for significant changes
- Handle seasonal price variations
Step 4: Review Cost Breakdown
Analyze your recipe costs and margins
- See cost per serving and total recipe cost
- View profit margins at current menu prices
- Identify high-cost ingredients
- Compare costs across similar recipes
Example: Chicken Caesar Salad
Chicken Caesar Salad
Serves 4 people
Menu Price
$14.00
Food Cost
$2.28
Profit Margin
83.7%
Best Practices
Start with your most popular dishes
Focus on items that represent 80% of your sales for maximum impact.
Include all ingredients, even small ones
Spices and seasonings add up. Include everything for accurate costs.
Update prices regularly
Set up price alerts to catch significant cost changes quickly.
Test your recipes
Make the dish and verify the quantities match your recipe.
Common Mistakes to Avoid
Not accounting for waste
Include waste factors for ingredients that lose weight during preparation (meat trimming, vegetable peeling).
Using outdated prices
Upload new invoices regularly and update prices when they change significantly.
Inconsistent units
Use the same unit system throughout (all in pounds, or all in ounces) for easier calculations.
Forgetting small ingredients
Include spices, oils, and seasonings. They add up and affect your margins.
Advanced Costing Features
Tally includes several advanced features to help you get the most accurate costs:
Sub-Recipes
Create reusable components like sauces and marinades that can be used in multiple dishes.
Seasonal Pricing
Set up different prices for ingredients that vary seasonally to maintain accuracy year-round.
Waste Factors
Automatically account for preparation waste and cooking losses in your cost calculations.
Price Alerts
Get notified when ingredient prices change significantly so you can update your recipes.