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Recipe-level cost variance

Finance & Margins 2 hr setup

Supplier prices drift constantly, and most menus never get repriced until margin pain is already obvious. This playbook tracks cost variance at the recipe level, catching dishes silently losing margin and suggesting yield or portion adjustments before you have to raise prices.

1

Build recipe cost cards

Every menu item needs an ingredient list with current unit costs - most POS or inventory systems can export this if it's not already built.

2

Track cost vs. price over time

As supplier invoices update ingredient costs, recalculate the recipe's margin automatically rather than waiting for a quarterly review.

3

Flag and suggest, don't auto-change

When a dish's margin drifts past a threshold, surface a suggested fix - portion size, substitute ingredient, or price adjustment - for a human decision.

Worth knowing

Customers notice price increases far more than portion or recipe tweaks. Where margins allow, a yield adjustment is usually the less visible - and less risky - first move before raising menu prices.