Menu Costings#

Costings are where you bring everything together – turning your recipes into priced menu items with profit margins. This comprehensive guide covers creating costings, markup and pricing, managing quantities, tracking labour costs, and using custom fields.

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Table of Contents#

• What You'll Learn
• Before You Start
• Creating Your First Costing
• Understanding Markup vs Margin
  • Markup and Margin Conversion Table
  • Pricing Strategies
• Locked Pricing
• Managing Quantities
  • Understanding the Two Quantity Fields
  • Quantity Calculation Modes
  • Quantity Types
  • Quantity Planning
• Tracking Labour Costs
  • How MenuM8 Handles Labour
  • Using Labour Time for Overhead Calculation
  • Setting Labour Rates
• Using Custom Fields
  • Custom Fields Driving Quantities
  • Common Custom Field Uses
• Generating Reports from Costings
  • Item Selection for Reports
• Allergen Information in Costings
  • How Allergens Flow Through the System
  • Refreshing Allergens
  • Viewing Allergens in Costings
• Costing Templates
• Tips for Creating Costings
• Best Practices Summary
• Common Questions
• Getting Help
• Related Articles

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What You'll Learn#

By the end of this guide, you'll know how to:

• Create a new costing (menu or event)
• Add products to the costing
• Set markup percentages for profitability
• Understand cost, price, and margin calculations
• Use locked pricing when needed
• Manage quantities for events and catering
• Track and calculate labour costs
• Use custom fields for additional data
• Generate shopping lists and reports

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Before You Start#

Prerequisites#

Before creating a costing, you need:

• At least one product in your system
• Understanding of your target profit margins
• Basic knowledge of markup vs. margin

Tip: If you haven't created products yet, see Understanding Products.

What You'll Need#

For this guide, gather:

• Costing name (menu name or event description)
• Products to include
• Quantities for each product
• Desired markup percentage (e.g., 150%, 200%)
• Or target profit margin (e.g., 60%, 66%)

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Creating Your First Costing#

Let's create a simple lunch menu costing.

Step 1: Navigate to Costings#

1. Click Costings in the main navigation menu
2. You'll see a list of your existing costings (empty if this is your first)

Step 2: Click "New Costing"#

1. Click the New Costing button (usually marked with a + icon)
2. The costing creation form will open

Step 3: Enter Basic Information#

Fill in the costing details:

Costing Name#

• Enter a descriptive name
• Examples: "Lunch Menu", "Wedding - Smith (June 15)", "Catering Quote #123"

For our example: Café Lunch Menu

Global Markup (Optional but Recommended)#

• Default markup applied to all items
• Can be overridden per item
• Common restaurant markups: 150-300%

For our example: 200% (triple the cost, 66.7% margin)

Template Toggle (Optional)#

• Is this a reusable template or a specific costing?
• Regular Costing: Specific menu or event
• Template: Reusable blueprint for similar events

For our example: Leave as regular costing

Step 4: Add Items to the Costing#

Now add products to your menu. Click Add Item for each product.

Item 1: Caesar Salad#

1. Click Add Item
2. Select Product: Choose "Caesar Salad" from dropdown
3. Quantity: 1 (one serving)
4. Markup: Leave blank to use global 200% markup
5. Locked Price: Leave unchecked

MenuM8 Calculates:

• Product Cost: £2.50 (from recipe)
• Markup: 200%
• Selling Price: £2.50 × 3 = £7.50
• Profit: £5.00 per salad
• Margin: 66.7%

Item 2: Tomato Soup#

1. Click Add Item
2. Select Product: Choose "Tomato Soup"
3. Quantity: 1
4. Markup: Leave blank (use global 200%)

MenuM8 Calculates:

• Product Cost: £0.93 (from recipe)
• Markup: 200%
• Selling Price: £0.93 × 3 = £2.79
• Profit: £1.86 per soup
• Margin: 66.7%

Item 3: Margherita Pizza#

1. Click Add Item
2. Select Product: Choose "Margherita Pizza"
3. Quantity: 1
4. Markup: Leave blank (use global 200%)

MenuM8 Calculates:

• Product Cost: £1.97 (from recipe)
• Markup: 200%
• Selling Price: £1.97 × 3 = £5.91
• Profit: £3.94 per pizza
• Margin: 66.7%

Item 4: Chocolate Cake (Slice)#

1. Click Add Item
2. Select Product: Choose "Chocolate Cake"
3. Quantity: 1 (one slice)
4. Item-Specific Markup: 300% (desserts often have higher markup)

MenuM8 Calculates:

• Product Cost: £0.81 (from recipe)
• Markup: 300% (overrides global 200%)
• Selling Price: £0.81 × 4 = £3.24
• Profit: £2.43 per slice
• Margin: 75.0%

Step 5: Review Costing Summary#

MenuM8 automatically calculates totals:

Item Costs:

• Caesar Salad: £2.50
• Tomato Soup: £0.93
• Margherita Pizza: £1.97
• Chocolate Cake: £0.81

Total Cost: £6.21 (cost to produce all 4 items)

Selling Prices:

• Caesar Salad: £7.50
• Tomato Soup: £2.79
• Margherita Pizza: £5.91
• Chocolate Cake: £3.24

Total Revenue: £19.44 (if you sell all 4 items)

Total Profit: £13.23 Average Margin: 68.1%

Step 6: Add Tags (Optional)#

Tags help organize costings:

• Menu Type: Lunch, Dinner, Brunch, Catering
• Season: Spring, Summer, Fall, Winter
• Status: Draft, Active, Archived

For our example: Add tag "Lunch Menu"

Step 7: Save Your Costing#

1. Review all information for accuracy
2. Verify quantities and markup
3. Click the Save button

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Understanding Markup vs Margin#

Markup and margin are two different ways to calculate selling prices. Understanding the difference is critical for profitable menu pricing.

What is Markup?#

Markup is the percentage added to the cost to determine the selling price:

• Based on cost
• How much you add on top of cost
• Formula: Selling Price = Cost × (1 + Markup%)

Example:

Cost: £10
Markup: 100%
Selling Price: £10 × (1 + 100%) = £10 × 2 = £20

You add 100% of the cost (£10) to the cost (£10) = £20

What is Margin?#

Margin (also called Gross Profit Margin) is the percentage of the selling price that is profit:

• Based on selling price
• How much of the sale is profit
• Formula: Margin% = (Selling Price - Cost) / Selling Price × 100

Example:

Cost: £10
Selling Price: £20
Margin: (£20 - £10) / £20 × 100 = 50%

Half (50%) of your selling price is profit, half is cost.

The Critical Difference#

Scenario:

• Cost: £10
• Selling Price: £20
• Profit: £10

As Markup:

• Markup = (£20 - £10) / £10 × 100 = 100%
• "We marked it up 100%"

As Margin:

• Margin = (£20 - £10) / £20 × 100 = 50%
• "We have a 50% margin"

Both Correct! Just different ways to express the same relationship.

Why It Matters#

Understanding the Difference:

• 100% markup ≠ 100% margin
• 100% markup = 50% margin
• 200% markup = 66.7% margin
• Mix them up = pricing errors = lost profit or uncompetitive prices

Common Mistake:

❌ Wrong: "I want 50% profit, so I'll add 50% markup"
   Cost: £10
   Markup: 50%
   Selling Price: £10 × 1.5 = £15
   Margin: (£15 - £10) / £15 = 33.3% (Not 50%!)

✅ Right: "I want 50% margin"
   Cost: £10
   Formula: Selling Price = Cost / (1 - Margin%)
   Selling Price: £10 / (1 - 0.5) = £10 / 0.5 = £20
   Margin: (£20 - £10) / £20 = 50% ✓

Markup and Margin Conversion Table#

Conversion Formulas#

Markup to Margin:

Margin% = Markup% / (1 + Markup%)

Example: 200% markup
Margin = 200% / (1 + 200%) = 200% / 300% = 66.7%

Margin to Markup:

Markup% = Margin% / (1 - Margin%)

Example: 50% margin
Markup = 50% / (1 - 50%) = 50% / 50% = 100%

How MenuM8 Handles Markup#

MenuM8 Uses Markup:

• Enter markup percentage for each item
• MenuM8 calculates selling price
• Can enter different markup for different items
• Can override with fixed price (locked pricing)

Why MenuM8 Uses Markup:

• Industry standard in food service
• Easier to communicate ("triple the cost" = 200% markup)
• Simpler math for quick calculations
• Traditional pricing method

Setting Markup in Costings#

Per-Item Markup:

1. Add product to costing
2. See product cost (calculated from recipe)
3. Enter markup percentage (e.g., 200%)
4. MenuM8 calculates selling price
5. Adjust markup to reach desired price

Default Markup:

• Define default markup for new items
• Apply to all items when adding to costing
• Can adjust individual items after

Industry Standard Markups#

Typical Food Service Markups:

• Fast Food: 100-150% (2-2.5× cost)
• Casual Dining: 200-300% (3-4× cost)
• Fine Dining: 300-400% (4-5× cost)
• Beverages: 300-500% (4-6× cost)
• Coffee/Specialty Drinks: 400-800% (5-9× cost)

Why Variation?:

• Overhead costs differ
• Service level differs
• Market positioning
• Competition
• Customer expectations

Pricing Strategies#

Uniform Markup#

Same Markup for All Items:

• Example: 200% markup on everything
• Simple and consistent
• Easy to calculate
• May not optimize profit

Pros: Easy to implement, consistent pricing approach Cons: May overprice some items (lose sales), may underprice others (lose profit)

Variable Markup#

Different Markup by Category:

• Appetizers: 250%
• Entrees: 200%
• Desserts: 300%
• Beverages: 400%

Why Different?:

• Market expectations (coffee priced differently than steak)
• Competition (match market rates)
• Customer psychology
• Strategic pricing (loss leader vs. profit driver)

Psychological Pricing#

Charm Pricing:

• End in .95 or .99
• £9.95 feels cheaper than £10.00
• Common in casual dining

Prestige Pricing:

• Round numbers or .50 endings
• £15 or £17.50
• Signals quality
• Common in fine dining

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Locked Pricing#

Sometimes you need to charge a specific price regardless of cost or markup.

When to Use Locked Pricing#

Use locked prices for:

• Set Menu Prices: "All pizzas £9.99"
• Promotional Pricing: Happy hour specials
• Competitive Pricing: Match competitor prices
• Contract Pricing: Fixed catering contracts

How to Lock a Price#

1. Edit the costing
2. Find the item you want to lock
3. Enable Locked Price
4. Enter the specific selling price
5. Save

Example:

• Margherita Pizza costs £1.97
• Normal 200% markup = £5.91
• But you want to charge exactly £8.99 (round number, competitive)
• Lock price at £8.99

Result:

• Cost: £1.97
• Selling Price: £8.99 (locked)
• Profit: £7.02
• Margin: 78.1% (better than normal!)

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Managing Quantities#

Quantities in costings determine how many portions you're making and affect total costs and shopping lists. MenuM8 provides flexible quantity controls with both manual and automatic calculation options.

Understanding the Two Quantity Fields#

Each costing item has TWO separate quantity controls that work together:

UOM Quantity (Amount per Unit)#

The UOM Quantity specifies the amount for a single serving or portion:

• How much of the product per unit
• Examples: 280g of Pad Thai, 1 pizza slice, 0.5 portions (half size)
• Allows fractional portions for flexibility
• Based on the product's unit of measure

Use Cases:

• Standard portion: 1 (full portion)
• Half portion: 0.5 (half portion)
• Large portion: 1.5 (one and a half portions)
• Specific weight: 280 (280g serving)

Quantity (Number of Units)#

The Quantity specifies how many units to make:

• Number of portions/servings/units
• Can be entered manually OR calculated automatically
• Multiplied by UOM Quantity to get total amount

Example: Half portions for 50 guests:

Product: Pad Thai
UOM Quantity: 0.5 (half portion)
Quantity: 50 (guests)

Total = 0.5 × 50 = 25 full portions worth of ingredients
Cost = £2.80 per portion × 0.5 × 50 = £70.00

Quantity Calculation Modes#

The Quantity field can be set in four different ways:

1. Manual Entry (Default)#

Enter the exact number of portions needed:

Product: Caesar Salad
Quantity: 75 (manually entered)

Best For: Standard event planning where you know the exact count.

2. Calculated from Total Labour Time#

Quantity automatically equals the cumulative labour minutes across all items:

Products in costing have accumulated 120 minutes of labour
→ Quantity for this item = 120

Use Case: Labour overhead charge at £0.50 per minute
£0.50 × 120 = £60.00 overhead

Best For: Adding labour overhead costs that scale with total prep time.

3. Calculated from Custom Field#

Quantity automatically equals the value of a custom field:

Custom Field: "Number of Guests" = 75
Product: Main Course
Quantity: Calculated from "Number of Guests"
→ Quantity = 75

When you update the custom field to 80, quantity becomes 80.

Best For: Event costings where multiple items should match guest count.

4. Calculated from Number of Tags#

Quantity equals the count of tags assigned to the item:

Item has tags: "Vegetarian", "Gluten-Free", "Premium"
→ Quantity = 3 (minimum 1)

Best For: Specialized use cases or automated categorization.

Switching Quantity Modes#

To change how an item's quantity is calculated:

1. Click the settings icon on the item
2. Select the quantity mode
3. For "Custom Field" mode, select which field to use
4. Save

Cost Calculation Formula#

The total cost for each item combines both quantity fields:

Total Cost = Cost per UOM × UOM Quantity × Quantity

Example:
Product: Pad Thai
Cost per portion: £2.80
UOM Quantity: 0.5 (half portion)
Quantity: 50 (guests)

Total Cost = £2.80 × 0.5 × 50 = £70.00

Scaling with UOM Quantity#

Adjust UOM Quantity for portion variations:

Quantity Types#

By Portion/Serving#

Most Common:

• Quantity = number of portions
• Example: 100 Caesar Salads = 100 portions

Best For:

• Plated meals
• Individual servings
• Counted items (sandwiches, burgers, pizzas)

By Weight/Volume#

For Bulk Service:

• Quantity = total weight or volume
• Example: 15 kg of pasta salad

Best For:

• Buffet service (serve yourself)
• Family-style service
• Bulk prep

By Batch#

For Production:

• Quantity = number of batches
• Example: 5 batches of cookies (each batch = 24 cookies)

Best For:

• Bakeries
• Production kitchens
• Batch cooking

Quantity Planning#

Per-Person Planning#

Estimating Quantities:

• Determine per-person serving sizes
• Multiply by guest count
• Add buffer (5-10% typical)

Example:

Event: 100 guests
Appetizer: 1 portion per person = 100 + 10% buffer = 110 portions
Main: 1 portion per person = 100 portions (no buffer on mains)
Dessert: 1 portion per person = 100 + 10% buffer = 110 portions

Buffet Quantities#

Buffet Service Factors:

• More variety = less of each item
• Guests take variable amounts
• Need more total quantity

Rule of Thumb:

Plated Service: 1 portion per person
Buffet (3 options): 0.5-0.75 portions per person per option
Buffet (5+ options): 0.4-0.6 portions per person per option

Example: 100 guests, 4 entree options
Each entree: 100 × 0.6 = 60 portions
Total: 240 portions for 100 guests (2.4 servings per guest on average)

Waste and Buffer#

Adding Buffer:

• Appetizers: 10-15% buffer (guests arrive hungry)
• Mains: 0-5% buffer (most critical, less waste acceptable)
• Desserts: 10-15% buffer (popular, some guests skip)
• Beverages: 20% buffer (high waste tolerance)

Why Buffer:

• Last-minute guest additions
• Larger appetites than expected
• Mistakes or drops in kitchen
• Quality control (reject substandard portions)

Quantities and Shopping Lists#

From Costing Quantities:

1. Create costing with quantities
2. Generate shopping list
3. MenuM8 calculates total ingredient needs
4. Multiplies recipe ingredients by quantities

Aggregating Across Products:

• Multiple products use same ingredient
• Shopping list aggregates total need
• Single line item for each ingredient

Example:

Caesar Salad (50 portions): 10 kg romaine lettuce
Garden Salad (30 portions): 3 kg romaine lettuce
Shopping List: 13 kg romaine lettuce (total)

Special Quantity Situations#

Variable Portion Sizes#

• Create separate products (Small Caesar, Large Caesar)
• Or adjust recipe yield for different sizes
• Specify in costing which size/version

Multiple Course Meals#

Event: 100 guests, 4-course meal

Course 1 - Appetizer: 100 portions
Course 2 - Soup: 100 portions
Course 3 - Main: 100 portions
Course 4 - Dessert: 100 portions

All same quantity (same guest count), but different products.

Choice Menus#

Main Course - Guest Choice:
- Chicken: 60 guests (60%)
- Salmon: 30 guests (30%)
- Vegetarian: 10 guests (10%)
Total: 100 guests

Costing includes all three with their respective quantities.

Quantity-Based Pricing#

Per-Person Pricing:

Total costing cost: £500
Total guest count: 50
Cost per person: £500 / 50 = £10 per person

With markup (200%):
Price per person: £10 × 3 = £30 per person
Total price for event: 50 × £30 = £1,500

Tiered Pricing:

• 1-25 guests: £35 per person
• 26-50 guests: £32 per person
• 51-100 guests: £30 per person
• 100+ guests: £28 per person

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Tracking Labour Costs#

Labour is a significant cost in food service. Including labour costs ensures complete and accurate pricing.

Why Include Labour Costs?#

Complete Cost Picture:

• Food cost alone doesn't tell full story
• Labour is typically 25-35% of revenue
• Must account for preparation time
• Ensures prices cover all costs

Example Without Labour:

Product: Handmade Ravioli
Food Cost: £4.50
Markup: 200%
Price: £13.50

Looks profitable, but...
Prep time: 45 minutes
Labour cost: £9.00 (at £12/hour)
True cost: £4.50 + £9.00 = £13.50
Actual profit: £0 (breaking even!)

Example With Labour:

Product: Handmade Ravioli
Food Cost: £4.50
Labour Cost: £9.00
Total Cost: £13.50
Markup: 200%
Price: £40.50

Now profitable! Food + labour covered with profit margin.

Understanding Labour Costs#

Components of Labour Cost#

Labour Includes:

• Prep time (chopping, mixing, cooking)
• Cooking time (active and passive)
• Plating and assembly
• Cleaning and setup

Labour Rate:

• Hourly wage of kitchen staff
• Include employer taxes and benefits (fully loaded cost)
• May vary by role (prep cook vs head chef)

Example Labour Rates:

Prep Cook: £10/hour
Line Cook: £12/hour
Sous Chef: £15/hour
Head Chef: £20/hour

Fully Loaded (with taxes/benefits +30%):
Prep Cook: £13/hour
Line Cook: £15.60/hour
Sous Chef: £19.50/hour
Head Chef: £26/hour

How MenuM8 Handles Labour#

MenuM8 tracks labour time automatically through a flow from inputs to products to costings:

Step 1: Create Labour Time Inputs#

Create inputs specifically for tracking preparation time:

1. Go to Inputs → New Input
2. Name: "Chef Prep Time" (or similar)
3. Check "Labour Time Input" checkbox
4. UOM: hours or minutes (dropdown filters to time units)
5. Save

You can create multiple labour time inputs for different types of work:

• "Prep Time" (chopping, mixing)
• "Cooking Time" (active cooking)
• "Plating Time" (assembly and presentation)

Step 2: Add Labour Time to Products#

Add labour time inputs to products just like ingredients:

Product: Handmade Ravioli
Ingredients:
- Flour: 500g
- Eggs: 4 units
- Ricotta: 250g

Labour Time:
- Chef Prep Time: 45 minutes

MenuM8 automatically calculates labour time per output UOM for each product. This value:

• Includes labour from all inputs marked as labour time inputs
• Includes labour from component products (recursive)
• Is normalized per output quantity

Example:

Product: Pad Thai (makes 4 portions)
Labour inputs: 20 minutes total
Labour time per portion: 20 ÷ 4 = 5 minutes per portion

Step 3: Labour Aggregation in Costings#

When you add products to a costing, MenuM8 automatically:

1. Shows labour time per item: Each item displays its labour contribution
2. Calculates cumulative total: Aggregates all labour time across items
3. Displays total in HH:MM format: Easy to see total prep time needed

Example:

Costing: Weekend Menu
Products:
- Handmade Ravioli × 10: 5 min/portion × 10 = 50 minutes
- Caesar Salad × 10: 3 min/portion × 10 = 30 minutes
- Tiramisu × 10: 8 min/portion × 10 = 80 minutes

Cumulative Labour Time: 160 minutes (2:40)

Using Labour Time for Overhead Calculation#

The cumulative labour time can drive automatic cost calculations. This is powerful for allocating fixed overheads based on production time.

Understanding the Concept#

Your business has fixed monthly costs that need to be recovered through your pricing:

• Rent and utilities
• Finance/loan repayments
• Insurance
• Equipment depreciation
• Staff salaries (non-production)

By calculating a cost per production minute, you can automatically allocate a fair share of these overheads to each costing based on how much labour time it requires.

Calculating Your Overhead Rate#

Step 1: Determine monthly working minutes

The total available production minutes depends on your staff count:

Production staff: 2 chefs
Working days per month: 22 days
Hours per day: 8 hours
Minutes per day per person: 480 minutes

Total monthly production minutes: 2 × 22 × 480 = 21,120 minutes

Step 2: Total your fixed monthly costs

Rent: £2,000
Finance/loans: £500
Insurance: £200
Equipment depreciation: £300
Utilities: £400

Total Fixed Overheads: £3,400/month

Step 3: Calculate cost per minute

Overhead per minute = £3,400 ÷ 21,120 = £0.16 per minute

Setting Up in MenuM8#

1. Create an input: "Fixed Overheads"
2. Set cost per unit: £0.16 (your calculated rate per minute)
3. UOM: minutes
4. Add this input to your costing

Example:

Costing: Wedding Reception (100 guests)
Products add up to 3200 minutes of labour time

Fixed Overheads input:
- Cost per minute: £0.16
- Quantity: Calculated from Total Labour Time = 3200
- Overhead allocation: £0.16 × 3200 = £510.20

This event contributes £510.20 toward your monthly fixed costs. This cost can be marked up to make a profitable contribution towards your fixed costs.

Labour Time Calculation Details#

Per-Portion vs Batch Labour#

Batch Prep (labour time in product recipe):

• Labour time is per output quantity
• Making 10 pizzas with 30 minutes labour = 3 minutes per pizza
• Scales correctly when quantities change

Individual Prep (labour time scales linearly):

• Each portion requires the same labour
• Example: Plating each salad takes 2 minutes
• 50 salads = 100 minutes labour

Combined Example#

Product: Caesar Salad (batch of 10)

Batch Prep (dressing, croutons, lettuce wash): 20 minutes
Per-Portion Prep (plating, garnish): 2 minutes each × 10 = 20 minutes
Total for batch: 40 minutes

Labour time per portion: 40 ÷ 10 = 4 minutes

In costing for 50 portions:
Labour time: 4 min × 50 = 200 minutes (3:20)

Setting Labour Rates#

Average Kitchen Labour Rate#

Calculate a blended rate across all kitchen staff:

Staff Mix:
- 2 Prep Cooks (£13/hour): 50% of time
- 1 Line Cook (£15.60/hour): 30% of time
- 1 Sous Chef (£19.50/hour): 20% of time

Blended Rate:
(0.50 × £13) + (0.30 × £15.60) + (0.20 × £19.50)
= £6.50 + £4.68 + £3.90
= £15.08/hour average (≈ £0.25/minute)

Role-Specific Rates#

Use different labour inputs for different complexity levels:

• "Prep Cook Time" at £13/hour for simple prep
• "Chef Time" at £20/hour for complex dishes
• Each product uses the appropriate labour type

Labour Cost Optimization#

Reducing Labour Costs#

Efficiency Strategies:

• Batch preparation (make multiples at once)
• Mise en place (prep ahead)
• Use component products (prep once, use many times)
• Simplify recipes where possible
• Train staff for speed and efficiency

Example:

Before: Make each Caesar Salad individually (5 min each)
50 salads = 250 minutes = 4.17 hours = £62.50 labour

After: Batch prep dressing and components (40 min), plate individually (2 min each)
40 + (50 × 2) = 140 minutes = 2.33 hours = £35.00 labour

Savings: £27.50 labour cost (44% reduction)

Menu Engineering for Labour#

Design Efficient Menus:

• Balance complex and simple dishes
• Use common components across dishes
• Limit very labour-intensive items
• Prep components in advance

Labour Cost in Different Contexts#

Restaurant Service#

Per-Dish Labour:

• Relatively low per plate
• Volume spreads labour cost
• Example: £2-5 labour per dish

Catering#

Event-Based Labour:

• Higher labour cost per person
• Includes transport, setup, service
• Example: £5-15 labour per person

Types of Labour:

• Kitchen prep
• On-site cooking/finishing
• Service staff
• Setup and breakdown

Example:

Catering Event: 100 guests

Kitchen Prep: 10 hours × £15/hour = £150
On-Site Chef: 4 hours × £20/hour = £80
Servers (3 staff): 4 hours × £12/hour × 3 = £144
Setup/Breakdown: 4 hours × £12/hour = £48

Total Labour: £422
Per Person: £422 / 100 = £4.22 labour per guest

Meal Prep/Production#

Batch Production:

• Economies of scale
• Lower labour per unit
• Example: £0.50-2 labour per meal

Labour and Pricing Strategy#

Total Cost Pricing:

Product: Handmade Gnocchi
Food Cost: £3.00
Labour Cost: £6.00 (30 min at £12/hour)
Total Cost: £9.00

Desired Margin: 66.7% (200% markup)
Selling Price: £9.00 × 3 = £27.00

Value Perception:

• Handmade items command premium prices
• Customers pay for skill and effort
• Highlight labour-intensive preparations
• "Handmade pasta", "Scratch-made sauce"

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Using Custom Fields#

Custom fields let you add extra information to costings beyond standard fields. This makes MenuM8 adaptable to your specific business model and workflow.

What Are Custom Fields?#

Standard Costing Fields:

• Products and Inputs (eg menu items, labour etc)
• Quantities
• Markup/pricing

Custom Fields Add:

• Event-specific information
• Client details
• Special instructions
• Custom calculations
• Any data unique to your business

Example Custom Fields:

• Event Date
• Client Name
• Venue Location
• Event Type (Wedding, Corporate, etc.)
• Special Dietary Notes

Types of Custom Fields#

Text Fields#

Free Text Entry:

• Client name
• Venue address
• Special instructions
• Contact information
• Notes

Example:

Field: Client Name
Value: "Smith Wedding Reception"

Field: Special Instructions
Value: "Bride is vegetarian, 3 guests with nut allergies, serve dessert at 9pm"

Numeric Fields#

Numbers and Calculations:

• Guest count
• Number of Adults
• Number of Children

Example:

Field: Guest Count
Value: 150

Date Fields#

Event Planning:

• Event date
• Delivery date
• Prep start date
• Payment due date

Dropdown/Select Fields#

Predefined Options:

• Event type (Wedding, Corporate, Birthday, etc.)
• Service style (Plated, Buffet, Family Style)
• Status (Quote, Confirmed, Completed)

Checkbox Fields#

Yes/No Options:

• Setup required
• Teardown required
• Equipment rental needed
• Alcohol service included

Adding Custom Fields to Costings#

Setup (if feature available):

1. Go to Settings → Custom Fields or Costing Settings
2. Click "Add Custom Field"
3. Specify:
   • Field name
   • Field type (text, number, date, dropdown, checkbox)
   • Options (for dropdown fields)
   • Required or optional
   • Default value (optional)
4. Save field definition

Using Custom Fields in Costings:

1. Create new costing
2. See custom fields in costing form
3. Fill in values as needed
4. Save costing

Fields appear:

• In costing details
• On reports (if configured)
• In exports
• In search/filters

Custom Fields Driving Quantities#

One of the most powerful features is using custom fields to automatically set item quantities:

Setting Up Quantity from Custom Field#

1. Create a numeric custom field (e.g., "Number of Guests")
2. Add items to your costing
3. For each item, click the settings icon
4. Set quantity mode to "Custom Field"
5. Select which custom field to use
6. Item quantity now equals the custom field value

Example:

Custom Field: "Event Size" = 75
Product: Pad Thai
Quantity Mode: Calculated from "Event Size"
→ Quantity = 75 portions

Benefits of Custom Field Quantities#

Single Source of Truth:

• Update the guest count once
• All linked items update automatically
• No need to edit each item individually

Example Workflow:

Costing: Corporate Lunch
Custom Field: "Guests" = 50

Items (all using "Guests" for quantity):
- Appetizer: 50 portions
- Main Course: 50 portions
- Dessert: 50 portions

Client changes to 75 guests:
→ Update "Guests" to 75
→ All items automatically become 75 portions
→ Costs, shopping lists, and reports update instantly

Multiple Custom Fields#

You can use different custom fields for different items:

Custom Field: "Adult Guests" = 60
Custom Field: "Children" = 15

Items:
- Adult Main Course: Quantity from "Adult Guests" = 60
- Children's Menu: Quantity from "Children" = 15
- Appetizers: Quantity from "Adult Guests" = 60 (kids share)
- Dessert: Manual quantity = 75 (everyone)

Common Custom Field Uses#

Event/Catering Information#

Client Details:

• Client Name
• Client Email
• Client Phone
• Contact Person

Event Details:

• Event Date & Time
• Venue Name
• Venue Address
• Event Type (Wedding, Corporate, etc.)
• Guest Count
• Service Style

Example Costing Header:

Costing: Smith Wedding
Client: John & Jane Smith
Event Date: December 15, 2024
Venue: Grand Hotel Ballroom
Guests: 150
Service: Plated Dinner

Additional Costs#

Extra Charges:

• Delivery Fee
• Setup Charge
• Equipment Rental
• Linens & Tableware
• Service Charge
• Gratuity
• Tax

Example:

Food & Beverage: £4,500
Labour: £800
Delivery: £150
Setup: £200
Equipment Rental: £350
Service Charge (18%): £1,080
Subtotal: £7,080
Tax (20%): £1,416
Total: £8,496

Operational Details#

Logistics:

• Prep Start Time
• Delivery Time
• Setup Time
• Event Start Time
• Number of Servers
• Number of Bartenders
• Vehicles Required

Special Requirements#

Dietary & Preferences:

• Vegetarian Count
• Vegan Count
• Gluten-Free Count
• Allergy Notes
• Special Requests

Example:

Standard Meals: 140
Vegetarian: 8
Vegan: 2
Gluten-Free: 5

Allergies: Guest #23 - severe nut allergy
Special: Bride's cake cutting at 9pm, champagne toast at 9:30pm

Custom Fields in Job Sheet#

On Generated Job Sheet:

• Custom fields shown in header
• Client/Staff sees relevant information

Industry-Specific Custom Fields#

Restaurant Costings#

• Menu Version (Summer 2024, Fall 2024, etc.)
• Menu Section (Appetizers, Entrees, etc.)
• Test Kitchen Notes
• Chef Approval Status
• Cost Target

Catering Business#

• Event Coordinator Name
• Venue Contact
• Load-In Time
• Breakdown Time
• Parking Instructions
• Access Notes (freight elevator, dock, etc.)

Meal Prep Business#

• Week Number (Week 1 of Month, etc.)
• Meal Plan Type (Keto, Vegan, Standard, etc.)
• Delivery Zone
• Number of Meals
• Customer Preferences

Bakery/Production#

• Production Date
• Batch Number
• Shelf Life
• Storage Requirements
• Quality Control Status

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Generating Reports from Costings#

Costings are more than just pricing – they're planning tools. You can generate Shopping Lists, Job Sheets, and Menus from your costings.

Item Selection for Reports#

Before generating reports, you can select which items to include. This gives you flexibility to generate reports for specific parts of your costing rather than everything.

Selecting Items#

In the costing editor, each item has a checkbox for selection:

1. Individual Selection: Click the checkbox next to any item to select/deselect it
2. Select All: Click the Select All button to select every item in the costing
3. Clear All: Click the Clear All button to deselect all items

The selection counter shows "Selected Items: X of Y items" so you always know what's included.

How Selection Affects Reports#

Your item selection flows through to all generated reports:

Use Cases for Item Selection#

Partial Orders:

• Event with phased delivery (appetizers today, mains tomorrow)
• Generate separate shopping lists for each phase

Course-Specific Menus:

• Select only starters to print a starter menu
• Select only desserts for the dessert trolley card

Kitchen Sections:

• Select cold items for the garde manger station
• Select hot items for the line cooks

Testing and Quotes:

• Select a subset of items for a partial quote
• Generate a shopping list for a test batch

Example Workflow:

Full Wedding Costing: 15 items

Day 1 Prep (select 5 items):
- Generate Shopping List → Buy ingredients for selected items only
- Generate Job Sheet → Prep instructions for those 5 items

Day 2 Service (select all 15 items):
- Generate Menu → Complete menu for guests

Shopping List#

Generate a shopping list to see exactly what to buy:

1. Open the costing
2. Click Generate Shopping List
3. MenuM8 consolidates all ingredients across all products
4. Shows total quantities needed for each ingredient
5. Grouped by category or supplier

Example Shopping List for 50-Person Event:

• Romaine Lettuce: 7.5 kg
• Chicken Breast: 6 kg
• Parmesan Cheese: 2.5 kg
• Pizza Dough: 20 bases
• Tomatoes: 5 kg
• (etc.)

Use For:

• Purchasing from suppliers
• Inventory checking
• Prep planning

Job Sheet#

Create a production sheet for your kitchen:

1. Open the costing
2. Click Generate Job Sheet
3. Shows all products to prepare
4. Quantities for each
5. Component breakdown

Use For:

• Kitchen production schedules
• Prep lists
• Task assignment

Menu with Allergen Information#

Generate a customer-facing menu:

1. Open the costing
2. Click Generate Menu or Print
3. Includes product names, prices, and allergen information
4. Professional formatting

Use For:

• Customer menus
• Regulatory compliance
• Event documentation

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Allergen Information in Costings#

MenuM8 tracks and displays allergen information throughout your costings, helping you maintain compliance with food safety regulations and inform your customers about potential allergens.

How Allergens Flow Through the System#

Allergens follow a clear inheritance path through MenuM8:

INPUTS (Allergens assigned) → PRODUCTS (Allergens inherited) → COSTINGS (Allergens displayed)

Step 1: Assign Allergens to Inputs#

When you create or edit an input (ingredient), you assign any applicable allergens:

• Flour → Contains: Gluten
• Eggs → Contains: Eggs
• Milk → Contains: Milk
• Prawns → Contains: Crustaceans

Step 2: Products Inherit Allergens#

When you build products (recipes) from inputs, MenuM8 automatically aggregates all allergens from the components:

Example: Pad Thai

Components:
- Rice Noodles (Gluten-free)
- Prawns (Crustaceans)
- Eggs (Eggs)
- Peanuts (Peanuts)
- Fish Sauce (Fish)
- Soy Sauce (Soya, Gluten)

Inherited Allergens: Crustaceans, Eggs, Fish, Gluten, Peanuts, Soya

This inheritance works recursively through component products too. If your Pad Thai uses a "Pad Thai Sauce" product, the allergens from that sauce flow up to the Pad Thai.

Step 3: Costings Display Allergens#

Each item in your costing displays its allergens:

• View allergens in the item card/row
• See allergens on generated menus
• Include allergens in job sheets for kitchen staff

Refreshing Allergens#

When you add items to a costing, MenuM8 captures the allergen information at that moment. However, allergens in your inputs or products may change over time:

• You discover an ingredient contains a new allergen
• A supplier changes their formulation
• You modify a recipe's components

Using "Refresh All Allergens"#

To update allergen information for all items in a costing:

1. Open the costing for editing
2. Look for the ↻ Refresh All Allergens button (blue button in the items section)
3. Click to refresh allergen data for all items
4. MenuM8 fetches the current effective allergens from each product/input
5. Save the costing to keep the updated allergens

When to Refresh Allergens:

• After updating allergens on any input used in the costing
• After modifying product recipes (adding/removing components)
• Before generating menus for customers
• Before printing job sheets for kitchen staff
• Periodically as part of your food safety review

Viewing Allergens in Costings#

In the Costing Editor#

Each costing item displays its allergens with badge indicators:

• Allergen badges appear below the item details
• Clear visual identification of each allergen present
• Quickly scan items to identify allergen concerns

On Generated Menus#

When you generate a menu from your costing:

1. Click Generate Menu or Print
2. Each item shows "Contains: [allergen list]"
3. Allergen names are localized to the selected language
4. Professional formatting for customer-facing menus

Example Menu Output:

Pad Thai
Rice noodles with prawns, egg, and peanuts in tamarind sauce
Contains: Crustaceans, Eggs, Fish, Gluten, Peanuts, Soya
£12.50

Localized Allergen Names#

MenuM8 displays allergen names in the customer's language:

When generating menus, select the appropriate language for your audience.

Managing Allergen Accuracy#

Best Practices:

1. Check supplier specifications: Verify allergens with your suppliers
2. Account for cross-contamination: Some facilities may have "may contain" warnings
3. Refresh before publishing: Always refresh allergens before generating customer-facing menus
4. Train your team: Ensure staff understand allergen importance and the refresh process

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Costing Templates#

Templates are reusable costing blueprints.

When to Use Templates#

Create templates for:

• Standard Menus: Lunch menu, dinner menu, brunch menu
• Event Types: Wedding package, corporate lunch, cocktail party
• Service Styles: Buffet, plated service, family style

Creating a Template#

1. Create a costing as normal
2. Enable Template toggle
3. Add all standard items
4. Save

Using a Template#

1. Go to Costings
2. Filter to show templates
3. Click Create from Template
4. MenuM8 creates a new costing with all items from template
5. Adjust quantities and items as needed
6. Save as a specific costing

Benefit: Start with a complete menu structure, customize as needed for each event.

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Tips for Creating Costings#

1. Know Your Target Margins#

Research industry standards:

• Fine Dining: 60-70% food cost margin (150-200% markup)
• Casual Dining: 65-75% margin (200-300% markup)
• Fast Casual: 70-75% margin (250-300% markup)
• Catering: 60-70% margin (150-200% markup)

Adjust markup to hit your targets.

2. Consider All Costs#

Remember that food cost is only part of your total costs:

• Labor (30-35% of revenue)
• Overhead (rent, utilities, insurance)
• Operating expenses
• Profit

Your markup must cover all of these.

3. Round Prices Strategically#

Consider price psychology:

• £9.99 vs. £10.00 (feels cheaper)
• £12.00 vs. £11.95 (cleaner, premium feel)
• £8.00 vs. £7.87 (easy for customers and staff)

Use locked pricing to set strategic price points.

4. Review Costings Regularly#

Update costings when:

• Ingredient prices change significantly
• Recipes are modified
• Competitor prices change
• Target margins shift

Set a monthly or quarterly review schedule.

5. Use Costings for Quotes#

For catering or custom events:

1. Create a costing for the specific event
2. Review profit margins
3. Adjust if needed
4. Send quote to client
5. Use shopping list for purchasing
6. Use job sheet for production

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Best Practices Summary#

Accurate Cost Tracking#

• Calculate true costs including waste and yield
• Include all small costs (garnishes, oils, etc.)
• Factor in labour time
• Use realistic labour rates (full cost including taxes/benefits)

Quantity Planning#

• Know your audience (different appetites)
• Test quantities and track actual consumption
• Document standards for consistency
• Review and adjust after events

Labour Management#

• Measure actual prep times, don't guess
• Review regularly against estimates
• Balance menu with mix of high and low labour items
• Optimize efficiency through batch prep

Custom Fields#

• Define useful fields based on what you need to track
• Use consistent values (standardize dropdown options)
• Keep fields updated
• Document field definitions for team training

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Common Questions#

What markup percentage should I use?#

Start with 200-250% (66-71% margin) and adjust based on your market, competition, target customer, operating costs, and business model. Test different markups to find what works.

Can I have different markups for different items?#

Yes! Use global markup for most items, then override for specific items (desserts, beverages, specials) that have different profit targets.

What if my costs are too high to be profitable?#

If cost calculations show low margins:

1. Review recipes for cost savings
2. Check ingredient prices (can you find better suppliers?)
3. Reduce portion sizes
4. Increase prices
5. Remove unprofitable items

How do I handle seasonal pricing?#

Options:

1. Update costing with new markup
2. Use locked prices for seasonal specials
3. Create seasonal templates
4. Duplicate costing and adjust for season

Can I compare multiple costing scenarios?#

Yes:

1. Duplicate the costing
2. Adjust items, quantities, or markup
3. Compare totals and margins side by side

Can I use decimals for quantities?#

Yes, you can enter 50.5 portions or 12.3 kg if needed. MenuM8 handles decimal quantities in both the UOM Quantity and Quantity fields.

What's the difference between UOM Quantity and Quantity?#

UOM Quantity is the amount per unit (e.g., 0.5 for half portions, 280 for 280g servings). Quantity is the number of units to make. They multiply together: UOM Quantity 0.5 × Quantity 50 = 25 full portions worth of ingredients.

What if guest count changes after creating costing?#

If you're using manual quantities, edit each item. Better: use a "Number of Guests" custom field and set items to calculate quantity from that field. Then you only update one number and all items recalculate automatically.

How do I handle choice menus (chicken or fish)?#

Add both options with their respective quantities (e.g., 60 chicken, 40 fish for 100 guests). You can use separate custom fields for each choice to make updates easier.

How does MenuM8 track labour?#

MenuM8 tracks labour time through labour time inputs added to products. Each product calculates its labour time per output UOM, and costings aggregate the total labour time across all items. You can then add a labour overhead item with quantity calculated from total labour time to convert time to cost automatically. You can also add labour time inputs directly to costings.

Can I have quantities calculated automatically?#

Yes! Quantity can be set in four ways: manual entry, calculated from total labour time, calculated from a custom field value, or calculated from the number of tags on the item.

Should I include passive cooking time (baking, braising)?#

Generally no. Labour cost typically reflects active prep and cooking time when staff is engaged. Oven time requires minimal supervision.

How much buffer should I add for quantities?#

Typical: 5-15% depending on item criticality and waste tolerance. Appetizers and desserts can have more buffer than mains.

Is 200% markup the same as doubling the price?#

No! 200% markup means tripling the price (cost + 200% of cost = 3× cost). 100% markup = doubling.

Can I add custom fields to existing costings?#

Yes, custom fields can typically be added to existing costings. Edit the costing and fill in new custom field values.

Do custom fields affect cost calculations?#

Yes! Numeric custom fields can drive item quantities. Set an item's quantity mode to "Custom Field" and select the field. When the custom field value changes, the item's quantity and all related costs update automatically.

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Getting Help#

Support#

Contact Support:

• Visit our Support Page for assistance
• Questions about costing features
• Pricing strategy advice
• Help with calculations

Related Articles#

• Understanding Inputs
• Understanding Products
• Managing Suppliers
• Managing Tags
• Managing Your Account