Professional Food Costing System
Complete Business Intelligence & Food Cost Control
1. THE 3-TIER FOOD COSTING SYSTEM EXPLAINED
Why This System is Revolutionary:
Traditional Problem: Most systems calculate food cost per dish manually or use fixed percentages.
Our Solution: Automatic, ingredient-level costing that updates in real-time when supplier prices change.
A. System Hierarchy - How It Works
| Level |
Component |
Purpose |
Example |
| Level 3 |
INGREDIENTS |
Raw materials with unit costs |
Beef @ KES 650/kg
Tomatoes @ KES 80/kg |
| Level 2 |
COMPONENTS |
Reusable portions made from ingredients |
Beef Portion = 0.3kg Beef + 0.1kg Tomatoes + Oil + Spices |
| Level 1 |
MENU ITEMS |
Final dishes sold to customers |
Beef Ugali = 1× Beef Portion + 1× Ugali Portion |
B. Complete Example: Creating "Beef Ugali" from Scratch
STEP 1: Create Ingredients (Raw Materials)
| Ingredient |
Unit |
Cost Per Unit |
Current Stock |
| Beef |
kg |
KES 650.00 |
45.5 kg |
| Tomatoes |
kg |
KES 80.00 |
12.3 kg |
| Onions |
kg |
KES 60.00 |
8.7 kg |
| Cooking Oil |
L |
KES 280.00 |
15.0 L |
| Maize Flour |
kg |
KES 85.00 |
50.0 kg |
STEP 2: Create Component - "Beef Portion"
| Ingredient |
Quantity |
Cost |
| Beef |
0.3 kg |
KES 195.00 |
| Tomatoes |
0.1 kg |
KES 8.00 |
| Onions |
0.05 kg |
KES 3.00 |
| Cooking Oil |
0.02 L |
KES 5.60 |
| TOTAL COST |
KES 211.60 |
STEP 2: Create Component - "Ugali Portion"
| Ingredient |
Quantity |
Cost |
| Maize Flour |
0.2 kg |
KES 17.00 |
| Water |
0.5 L |
KES 0.00 |
| |
| |
| TOTAL COST |
KES 17.00 |
STEP 3: Create Menu Item - "Beef Ugali"
| Component |
Quantity |
Unit Cost |
Total Cost |
| Beef Portion |
1.0 |
KES 211.60 |
KES 211.60 |
| Ugali Portion |
1.0 |
KES 17.00 |
KES 17.00 |
| TOTAL FOOD COST |
KES 228.60 |
| Selling Price (Set by Restaurant) |
KES 300.00 |
| GROSS PROFIT PER DISH |
KES 71.40 |
| PROFIT MARGIN |
23.8% |
| FOOD COST % |
76.2% |
⚠️ WARNING: Food Cost % of 76.2% is TOO HIGH!
Industry Standard: 25-35% food cost
Recommended Action: Either increase selling price to KES 350+ OR reduce portion sizes
Sample Menu Items with Real-Time Profit Analysis
| Menu Item |
Food Cost |
Selling Price |
Profit |
Margin % |
Status |
| Beef Ugali |
KES 228.60 |
KES 350.00 |
KES 121.40 |
34.7% |
GOOD |
| Chicken Rice |
KES 185.00 |
KES 280.00 |
KES 95.00 |
33.9% |
GOOD |
| Fish Chips |
KES 245.00 |
KES 320.00 |
KES 75.00 |
23.4% |
LOW |
| Chips Masala |
KES 95.00 |
KES 150.00 |
KES 55.00 |
36.7% |
EXCELLENT |
| Githeri Beef |
KES 205.00 |
KES 250.00 |
KES 45.00 |
18.0% |
POOR |
Color-Coded Alerts:
🟢 GREEN (>30%): Excellent profit margins
🟡 YELLOW (25-30%): Acceptable but could improve
🔴 RED (<25%): Immediate action required - increase price or reduce portions
3. STOCK MANAGEMENT - THE GAME CHANGER
A. Real-Time Stock Tracking
OLD SYSTEM PROBLEM:
"How much beef do we have left?" → Manual count in the cold room (20 minutes)
NEW SYSTEM SOLUTION:
Click "Stock Levels" → See all stock instantly! (2 seconds)
B. Stock Levels Report (One Click!)
| Ingredient |
Current Stock |
Min Stock |
Status |
Stock Value |
Action Needed |
| Beef |
45.5 kg |
30.0 kg |
NORMAL |
KES 29,575 |
- |
| Chicken |
12.0 kg |
20.0 kg |
LOW |
KES 7,200 |
Order 15kg |
| Rice |
8.5 kg |
25.0 kg |
CRITICAL |
KES 1,190 |
ORDER NOW! |
| Cooking Oil |
15.0 L |
10.0 L |
NORMAL |
KES 4,200 |
- |
| TOTAL STOCK VALUE |
KES 42,165 |
C. Automatic Stock Deduction on Sales
Before Sale:
| Beef Stock: |
45.5 kg |
| Maize Flour: |
50.0 kg |
After Selling 3× Beef Ugali:
| Beef Stock: |
44.6 kg (-0.9kg) |
| Maize Flour: |
49.4 kg (-0.6kg) |
Calculation: 3 orders × (0.3kg beef + 0.2kg flour) = 0.9kg beef + 0.6kg flour deducted
✓ Happens automatically when order is sent to kitchen!
D. Stock Takes & Variance Reports
| Ingredient |
System Stock |
Physical Count |
Variance |
Value Lost |
| Beef |
45.5 kg |
44.0 kg |
-1.5 kg |
KES 975 |
| Rice |
25.0 kg |
25.5 kg |
+0.5 kg |
KES 70 |
| Cooking Oil |
15.0 L |
14.2 L |
-0.8 L |
KES 224 |
| TOTAL SHRINKAGE VALUE |
KES 1,129 |
Shrinkage Alert! KES 1,129 lost to wastage/theft
Action: Investigate beef and oil storage/handling procedures
Sample Monthly P&L Statement
| Item |
Amount (KES) |
% |
| A. REVENUE |
| Food Sales |
850,000.00 |
85.0% |
| Beverage Sales |
150,000.00 |
15.0% |
| TOTAL REVENUE |
1,000,000.00 |
100.0% |
| B. COST OF GOODS SOLD (Automatic from System) |
| Food Ingredients Cost |
255,000.00 |
25.5% |
| Beverage Cost |
60,000.00 |
6.0% |
| TOTAL COGS |
315,000.00 |
31.5% |
| GROSS PROFIT |
685,000.00 |
68.5% |
| C. OPERATING EXPENSES |
| Rent |
120,000.00 |
12.0% |
| Salaries & Wages |
180,000.00 |
18.0% |
| Utilities (Electricity, Water) |
45,000.00 |
4.5% |
| Gas |
25,000.00 |
2.5% |
| Marketing |
15,000.00 |
1.5% |
| Repairs & Maintenance |
12,000.00 |
1.2% |
| Supplies (Cleaning, Packaging) |
18,000.00 |
1.8% |
| Transport & Deliveries |
20,000.00 |
2.0% |
| Insurance |
8,000.00 |
0.8% |
| Licenses & Permits |
5,000.00 |
0.5% |
| Miscellaneous |
7,000.00 |
0.7% |
| TOTAL OPERATING EXPENSES |
455,000.00 |
45.5% |
| NET PROFIT BEFORE TAX |
230,000.00 |
23.0% |
| Income Tax (30%) |
69,000.00 |
6.9% |
| NET PROFIT AFTER TAX |
161,000.00 |
16.1% |
✓ EXCELLENT PERFORMANCE!
Food Cost %: 31.5% (Target: 25-35%)
Gross Profit Margin: 68.5%
Net Profit Margin: 16.1% (Industry average: 10-15%)
| Date |
Category |
Description |
Supplier |
Amount |
| 01/02/2026 |
Rent |
Monthly Rent - February |
Landlord Ltd |
KES 120,000 |
| 05/02/2026 |
Utilities |
Electricity Bill |
KPLC |
KES 28,500 |
| 07/02/2026 |
Gas |
LPG Refill - 2 Cylinders |
Total Gas |
KES 12,000 |
| 10/02/2026 |
Salaries |
Staff Salaries - February |
- |
KES 180,000 |
Expense Categories: Rent, Salaries, Utilities, Gas, Marketing, Repairs, Supplies, Transport, Insurance, Licenses, Miscellaneous
Reports Available: By category, by supplier, by date range, comparison month-to-month
Purchase Order Flow
| Stage |
Action |
Stock Impact |
Status |
| 1. Create PO |
List items needed with quantities |
No change |
Draft |
| 2. Send to Supplier |
Print/email purchase order |
No change |
Sent |
| 3. Receive Goods |
Verify quantities & quality |
Stock INCREASES |
Received |
| 4. Make Payment |
Record payment details |
No change |
Completed |
Sample Purchase - Beef Supplier
Purchase Order #PO-2453
| Supplier: |
Kenya Meat Suppliers Ltd |
| Date: |
07/02/2026 |
| Item: |
Beef (Premium Grade) |
| Quantity: |
50 kg |
| Unit Cost: |
KES 650/kg |
| Total: |
KES 32,500 |
Stock Movement Record
| Before Purchase: |
15.0 kg |
| Received: |
+50.0 kg |
| After Purchase: |
65.0 kg |
| |
| Stock Value: |
KES 42,250 |
COST: KES 20,000
One-time payment | No recurring fees
Comptracks Systems | Restaurant Management Solutions | +254 757 859767 | systems@comptrackssystems.com
Professional POS • Inventory • Food Costing • Custom Development