THE FUTURE MARKETACADEMY
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Food Business Growth: menus, costing and kitchen systems

What you'll be able to do
  • Cost recipes accurately with yield tests, sub-recipes and standard recipe cards.
  • Use menu engineering to decide which dishes to keep, promote, reprice or drop.
  • Control inventory and read your prime cost every week.
  • Build a written food safety system around your country's official temperature rules (Health Canada's are the example) and the seven HACCP principles.
  • Train and schedule staff with simple standard operating procedures (SOPs), and know your country's basic health and safety training rule (Ontario's is the example).
  • Plan prep, stations and capacity for your busiest hours and for catering jobs.
  • Review your monthly numbers and make growth decisions from facts.

Important: this course is general business education. It is not legal, tax, accounting or food-safety-compliance advice, and it makes no promise of income. Many food businesses take a long time to become profitable and some never do. Confirm rules with your local health authority, your tax agency (in Canada, the CRA) and a licensed accountant.

Words in this course 68Open the Vocabulary Hall
01

Standard recipes and true costing

In simple words

When you buy a whole chicken, you do not eat the bones. So the chicken you pay for is more than the chicken on the plate. A grown-up kitchen measures this exactly, writes the recipe on a card, and makes it the same way every time.

Before this course: Food Business: food cart, carinderia, restaurant & catering (course 2.21) and Start a Food Business in Ontario (course 12.4). You already know the basic plate cost, food cost % and the Ontario permit steps. Here we go deeper.

Key facts
  • AP (as purchased) is the product the way you buy it. EP (edible portion) is what is left after peeling, trimming, boning and cooking.
  • Yield % = EP weight ÷ AP weight × 100. Do a yield test: weigh it before, do the prep, weigh it after.
  • EP cost per kg = AP cost per kg ÷ yield % (as a decimal).
  • Sub-recipes (sauces, marinades, doughs, stocks) get their own cost per portion or per litre. Then use that cost in every dish that uses them.
  • A standard recipe card lists: dish name, yield (portions), portion size, every ingredient with its EP amount and cost, method, cooking temperature and time, allergens, plating photo and the date it was last costed.
  • Re-cost the whole menu on a schedule (for example monthly) and whenever a key ingredient price jumps.
Example (practice numbers, not real prices)
ItemValue
Chicken bought (AP)1.0 kg at 12.00 per kg
Weight after trimming and cooking (EP)0.65 kg
Yield %0.65 ÷ 1.0 = 65%
EP cost per kg12.00 ÷ 0.65 = about 18.46
150 g portion (0.15 kg)0.15 × 18.46 = about 2.77

Using the AP price would give 0.15 × 12.00 = 1.80 per portion, which understates the cost by about one third.

Step by step
  1. Pick your best-selling protein or main ingredient.
  2. Weigh it as purchased (AP) and write the price.
  3. Do the prep and cooking exactly as on the menu, then weigh what is left (EP).
  4. Divide EP by AP and multiply by 100 to get the yield %.
  5. Divide the AP price per kg by the yield (as a decimal) to get the EP cost per kg.
  6. Multiply by the portion weight to get the true portion cost.
  7. Write a standard recipe card for the dish with all the fields above.
  8. Check: your portion cost uses EP cost, and the card has a "last costed" date.
Watch on YouTube
Food cost formula: how to calculate food cost percentageThe Restaurant Boss · YouTube · youtube.com

Videos by other creators on YouTube, for reference. They are not made by or affiliated with The Future Market.

LESSON 01Standard recipes and true costing
LESSON 01 / ANIMATED LESSON / AI VOICE00:00 / 01:00
Read the video script
[Host weighing a chicken on a scale] "A kilo of chicken does not give you a kilo of food. Let's find the real cost."
[Text on screen: Yield % = EP ÷ AP × 100] "Weigh it before, prep it, weigh it after. Divide the second number by the first."
[Text on screen: 12.00 ÷ 0.65 = 18.46 per kg] "With a 65 percent yield, a 12 dollar kilo really costs about 18 dollars and 46 cents for the part you serve."
[Host holding a recipe card] "Write it on a standard recipe card, and re-cost it on a schedule."
Try it now

Run a yield test on your most-used ingredient. Compute the EP cost per kg and the true portion cost. Then write one standard recipe card with all the fields.

ClaudeStuck? Copy a ready-made prompt for Claude

Copy this, open Claude, paste it, and Claude will walk you through the lesson step by step.

For a grown-up: Claude is for adults (18+). Copy this, paste it into Claude, and use the answer to explain the lesson to your child.

I'm learning "Food Business Growth: menus, costing and kitchen systems" on The Future Market. Lesson 1: "Standard recipes and true costing".

What the lesson teaches:
- AP (as purchased) is the product the way you buy it. EP (edible portion) is what is left after peeling, trimming, boning and cooking.
- Yield % = EP weight ÷ AP weight × 100. Do a yield test: weigh it before, do the prep, weigh it after.
- EP cost per kg = AP cost per kg ÷ yield % (as a decimal).
- Sub-recipes (sauces, marinades, doughs, stocks) get their own cost per portion or per litre. Then use that cost in every dish that uses them.
- A standard recipe card lists: dish name, yield (portions), portion size, every ingredient with its EP amount and cost, method, cooking temperature and time, allergens, plating photo and the date it was last costed.
- Re-cost the whole menu on a schedule (for example monthly) and whenever a key ingredient price jumps.

The exercise I'm working on:
Run a yield test on your most-used ingredient. Compute the EP cost per kg and the true portion cost. Then write one standard recipe card with all the fields. ---

I'm stuck. Please:
1. Explain the main idea in plain, simple words with one everyday example.
2. Walk me through the exercise one small step at a time. Ask me what I've done so far before giving the next step.
3. Don't just give me the final answer. Help me do it myself, and check my work when I share it.
I'm a parent helping my child (about 8 years old) with a lesson called "Standard recipes and true costing" from the course "Food Business Growth: menus, costing and kitchen systems".

Here's what the lesson says:
When you buy a whole chicken, you do not eat the bones. So the chicken you pay for is more than the chicken on the plate. A grown-up kitchen measures this exactly, writes the recipe on a card, and makes it the same way every time.

The activity:
Run a yield test on your most-used ingredient. Compute the EP cost per kg and the true portion cost. Then write one standard recipe card with all the fields. ---

Please explain this so an 8-year-old understands: short sentences, a fun everyday example, and no hard words.
Then give me 3 simple questions I can ask my child to check they understood, and a way to do the activity together, one tiny step at a time.
Open Claude
My notes
02

Menu engineering

This lesson is part of full access: every course and every level for one payment.

03

Inventory, ordering and prime cost

This lesson is part of full access: every course and every level for one payment.

04

A written food safety system

This lesson is part of full access: every course and every level for one payment.

05

Training, SOPs and scheduling staff

This lesson is part of full access: every course and every level for one payment.

06

Planning for peak demand

This lesson is part of full access: every course and every level for one payment.

07

Monthly review, tax basics and growth decisions

This lesson is part of full access: every course and every level for one payment.

++

Final project

This lesson is part of full access: every course and every level for one payment.

??

Quiz

  1. What is yield % and how do you find it?

  2. A 1 kg item costs 12.00 and has a 65% yield. About what is the EP cost per kg?

  3. What is contribution margin?

  4. In menu engineering, what is a Plowhorse?

  5. What should you do with a Puzzle?

  6. How do you calculate COGS?

  7. What is prime cost?

  8. What hot-holding and reheating numbers does the course use?

  9. How many principles does HACCP have, and what is the last one?

  10. What should a business check about worker health and safety training?

  11. What limits how many plates your kitchen can make in an hour?

  12. Why check the sales tax that applies to catering and restaurant sales?

EX

Final exam

This lesson is part of full access: every course and every level for one payment.

CE

Certificate

This lesson is part of full access: every course and every level for one payment.