RestoBird Restaurant Glossary • Menu Engineering
Recipe Costing & Bill of Materials (BOM)
DefinitionA Recipe Bill of Materials (BOM) is an itemized breakdown of every raw ingredient, portion weight, and sub-recipe required to prepare a specific menu item, along with its calculated cost.
Detailed Explanation
By assigning current vendor purchase unit costs to every ingredient gram in a recipe BOM, restaurant operators can determine the exact cost-per-plate and set profitable menu prices.
Key Calculation FormulaPlate Cost = Sum of (Ingredient Quantity × Unit Purchase Price)
Why It Matters for Restaurant Profitability
Without accurate recipe BOM costing, restaurant owners risk underpricing popular dishes, eroding gross margins whenever food supplier prices rise.
How RestoBird Solves This
RestoBird updates recipe BOM costs in real time as vendor invoices are processed, alerting management whenever a dish's food cost percentage exceeds target limits.