Now that we know how to determine edible portion cost, we can now determine what we need to charge per portion.
The Situation: Suppose you're catering an event for $200$ guests. Each guest will get a $4$-ounce portion of asparagus.
Big Question: If it costs $\$173.89$ to make $200$ four-ounce portions of asparagus, and your budget allows for a $25\%$ food cost, how much should you charge per portion of asparagus?
Big Answer: The Food Cost Percent Triangle
Answer to Big Question: Given $$\mbox{Cost per Portion}=\frac{\$173.89}{200}= \$0.86945 \mbox{ (leave in unrounded form)}$$ and $$\mbox{Food Cost %}=25\%=0.25,$$ using the percent triangle we have $$\mbox{Selling Price}=\frac{\mbox{Cost per Portion}}{\mbox{Food Cost %}}=\frac{\$0.86945}{0.25}\approx\$3.48.$$
Example
Billy Bob's Bistro makes their famous Shotgun Wedding Stew for $\$1.15$ per portion and sells it for $\$3.66$ per portion. What is the food-cost percent for the Shotgun Wedding Stew?
Note: When calculating food cost percent, we round up.
Bonus Example
The total cost for Billy Bob's Bistro to make their signature Spicy Cajun Cioppino is $\$13.07$ to make $10$ portions. If the budget allows for a $23\%$ food cost, what should be the selling price for this item?
Bonus Example #2
Billy Bob is making the recipe for his signature Spicy Cajun Cioppino which requires $3$ ounces of seeded, diced habañero peppers. Billy Bob's supplier charges $\$1.67$ per pound, and habañero peppers have a yield of $71\%.$ What is the ingredient cost for this item?