This document discusses food costing and menu planning for a restaurant. It covers calculating food costs using theoretical menu plate costs and food cost percentages. Key aspects of food costing include using standard recipes, up-to-date ingredient costs, and recipe cost sheets. The document also discusses how to determine selling prices by adding food costs, labor costs, overhead costs, and profit margins. An example is provided to illustrate calculating costs and determining the selling price for egg fried rice. Finally, the document discusses segmenting customers and designing menus based on factors like train class, duration of travel, and regional cuisines.

1. MENU
PLANNINING-I

2. I. FOOD COSTING
• Food cost is the ratio of cost of ingredients (food inventory) and the revenue
that those ingredients generate when the menu items are sold (food sales).
• Food cost is almost always expressed as a percentage known as food cost
percentage

3. HOWTO CALCULATE FOOD COST
• The two ways foodservice establishments use to
determine food costs are:
• Theoretical Menu Plate Cost – Individual portion cost for
each menu item
• Overall Food Cost Percentage – Based on the monthly
cost of food as compared to sales

4. Food CostingTools
• While it might seem difficult in the beginning, you’ll be setting up your restaurant to be in a better financial position
after using the following metrics.These are the tools and calculations that are important in deriving your food costs:
• Standard Recipe: Costing based on a standard recipe makes it easy to guide kitchen staff or food preparation. It also
helps to compute food costs based on the servings that are needed. It is a basis for food costing.
• Up-to-Date Ingredient Costs: Current prices should be the basis of costing, thus the need to do a price check on
ingredients from time to time is necessary.
• Recipe Cost Sheet: For recording data and all information about the recipe, such as current unit cost, actual
ingredient cost, and cost per portion. Knowing your recipe cost plays a significant role in your selling price and can
help you in the future if you need to reduce a recipe cost due to the tracking.
• Calculating Recipe Cost
• How to calculate the food cost for each Standard Recipe?
• Step 1. Fill up the Recipe Costing Sheet with information based on the standard recipe to be based on a current price
list.
• Step 2. Indicate the latest purchase cost of each ingredient based on a current price list.
• Step 3. Compute the actual cost of each ingredient.
• Step 4. Add the actual cost of each ingredient to get the total recipe cost.
• Step 5. Divide the total recipe cost by the number of portions to get the cost per portion.

5. II. Selling Price/ Meal Pricing
• Once you have your food costs, you can figure out
the selling price of your dishes.The basic formula is:
Selling Price = (Food Cost + Labour Cost + Overhead
Cost) + Profit
Your selling price should include all costs plus the profit
you would like to earn.

6. Illustration- Costing for Egg Fried
Rice
Egg Fried Rice
300 gms of Egg Fried Rice + Tomato sachet
Qty analysis for 10 plates of Egg Fried Rice
S.No Ingredient Qty(Kg)/Nos Rate/ KG Costing
1 Basmati Rice 1.5 ₹ 124.00 ₹ 186.00
2 Refined oil 0.2 ₹ 160.00 ₹ 32.00
3 garlic 0.05 ₹ 150.00 ₹ 7.50
4 Green Chilli 0.05 ₹ 80.00 ₹ 4.00
5 Egg 20 ₹ 5.00 ₹ 100.00
6 Soya sauce 0.03 ₹ 120.00 ₹ 3.60
7 Vinegar 0.075 ₹ 70.00 ₹ 5.25
8 Onion 0.25 ₹ 40.00 ₹ 10.00
9 Pepper Pwd 0.02 ₹ 985.00 ₹ 19.70
10 Spring onion bdl 1 ₹ 12.00 ₹ 12.00
11 Salt 0.02 ₹ 20.00 ₹ 0.40
12 Ginger 0.03 ₹ 100.00 ₹ 3.00
13 Chilli Sauce 0.05 ₹ 125.00 ₹ 6.25
14 Tomato sachet 10 ₹ 1.00 ₹ 10.00
15 Aluminium casseroll (450 ml) 10 ₹ 5.00 ₹ 50.00
16 Sanitizer (1ml) 10 ₹ 0.40 ₹ 4.00
17 Wooden spoon 10 ₹ 2.00 ₹ 20.00
Cost for 10 pax ₹ 473.70
Cost for 1 pax ₹ 48
18 Fuel Cost(10%) ₹ 5
19 Staff cost (30%) ₹ 14
20 Logistics + misc.(10%) ₹ 5
Total ₹ 72
CGST ₹ 1.80
SGST ₹ 1.80
Total ₹ 76.00

7. Determining the Selling price as
per illustration.
• Selling Price = (Food Cost + Labour Cost + Overhead
Cost) + Profit ( 10%-to-20%)
• Lets say selling price of one portion of Egg Fried Rice = ₹
90.00
• So, Profit = ₹(90-76)= ₹ 14.00
• Profit % = (14/90)*100 = 15.55%

8. III. Scope of Menu Designing
• To understand the catering needs of different segments
of on-board RailTraveller, in different type of train
services and conceptualize a contract to provide optimum
satisfaction to them, at affordable cost.

9. Segmentation of customers
• We have categorized them into three segments of
passengers as per paying capacity and there are five
types of passenger services which have different catering
needs-
• Passenger segment-
 AC class
Sleeper class
General & Commuter class

10. Specific requirements of different
type of Rail customers
• Depending upon the paying capacity and time spent by passengers in trains, the catering needs are
differentiated-
 Premium services where passengers are better informed, can exercise more choice, brand conscious and
are having higher paying capacity.These are the passengers maximum feed back is received. Meal charges
should be made optional and nor compulsorily included in the fare.
 In non-premium long distance trains, there is a large population of sleeper class low paying customers,
who demand fixed menu meals at affordable price.
 In non-premium long distance trains, there is a good population of unreserved class low paying customers,
who need staple diet of local food in bulk at very low price.
 In Indian Railway there is a large segment of daily commuters, few of which travel by premium services
and maximum by second class sitting and local trains.These passenger are spending 4-6 hours in train and
have need of local snacks and beverages only.
 Hence the catering service should be designed in such a way that it has a fixed menu above which a-la-
carte add-ups can be provided by the service provider as per specific demand of the traveller.

11. Categorization of train services,
based on time spent in train
Catergorisation Time Duration (Hrs) Service
Over night trains 8-12 No service required
Long distance premium trains (AC
passengers)
12-20 one meal + one breakfast+ one Hi-
tea with customized choice
including branded meals &
beverages
Long distance M/Exp trains 12-20 In addition to above requirements
of AC class, local fixed cuisines at
affordable price for sleeper class
and low priced staple diet for
general class
Very long distance (inter state
trains)
>20 State specific cuisines should be in
menu, in addition to above
requirements of long distance
Day time premium commuter
trains
4-8 one meal+one breakfast with
customised choice including
branded meals & beverages
Day time other commuter trains 4-8 Locally popular snacks &
beverages

12. Factors to be kept in mind while
designing Menu
• As per the and type ofTrain (GTV, RSD, M/E,TSV) & class of
the passengers (I AC, II/IIIAC, SL, General class).
• Cyclic in Nature.
• Regional Cuisines to be included.
• Duration ofTravel.
• Ease of preparation and service on-bard and sustainability of
menu items on- board.