Recipes can be added to hospoIQ to calculate the Cost of Goods Sold per Menu Item. This is done by:
Firstly, defining the different Purchase Items (and their associated unit of measurement)
Maintaining an ongoing record of Purchase Transactions, which define the different prices paid, and quantities purchased, for Purchase Items over time
Creating Recipes, per Menu Item, which describes the different Purchase Items included, and the quantity required, of each; the Recipe will then automatically calculate the Total Cost based on the most recent or current Purchase Transactions
Adding Menu Items
Menu items will be automatically retrieved from your Point of Sale, but additional items can be added if you wish to test a recipe for future planning.
Navigate to app.hospoiq.com. Once here, click the menu icon at the top left of the page and then click ‘Menu Items’.
From here you have the ability to see, edit and create new Menu Items. To create a new item, click ‘Create New’. This will take you to a new page where you can add the details of your new Menu Item.
On this page, you will need to select the Site that you want this Menu Item to be associated with and then specify a name. When finished, click ‘Save’ and you will see it added to the list.
Adding Purchase Items
Purchase items are any item that is included in a Recipe. These can be added by hospoIQ if a list is provided or you can add yourself.
To add Purchase Items, click the menu icon at the top left of the page and then click ‘Purchase Items’. From here you will see a list of any Purchase Item’s you have previously added.
Once here, to add a new Purchase Item, click ‘Create New’.
From here, select the site name allocated to this Purchase Item and enter a name. Then enter how the item is measured in (Kilogram, Packet, Cup etc) and then enter the Yield Percentage for that specific item (ie, what % of the purchased item quantity is actually use-able when added to a recipe). Once finished, click 'Save'.
You will then be taken back to the list of Purchase Items and will be able to see any new Purchase Items added.
Recipe and Food Cost Management
A Purchase Transaction is the price paid for a given Purchase Item on a given date. These can be added as a one-off or be updated regularly as prices of ingredients change or are physically purchased. Note that recipes will be costed based on the transactions with a date less than, or equal to, the date range of the Recipe.
To add a Purchase Transaction, click the menu icon at the top left of the page and then click ‘Purchase Transactions’. You will see any transactions you have added here.
To add a new Purchase Transaction, click ‘Create New’.
From here, you can select the site associated with the Purchase Transaction and the Item that you purchased (This list of Item Names will be automatically filled with the Purchase Items you have previously added). Select the date, price and quantity you purchased and when you are ready, click ‘Create’.
You will be redirected back to your list of Purchase Transactions where you can see your most recently added Transaction. The Price Per Unit is automatically calculated for each of these transactions which you can see on the far-right column.
Adding a Recipe
The Recipe page is where you bring together all the details from the previous setup to generate a Recipe and calculate costings based on quantities used and the prices paid.
To add a new Recipe, click Recipes and then click Recipes from the drop-down list.
From the Recipe page, you will see a list of any recipes you have previously created. To add a new Recipe, click ‘Create New’.
The first section is where you set any details about the recipe. This includes the Recipe Name, the price you are/ will be selling it at, the Site associated to the recipe, and the Start Date for this recipe. Then enter how many portions the recipe will create in the bottom section. At this point, some basic fields will be automatically generated for you, such as Menu Price Excluding GST and the GST Amount.
The next step is to add ingredients/items to the menu. To-do this, click ‘Add Line’ under the middle table.
This will take you to a screen where you can select the item you wish to add. Once selected, choose how much of this item is needed for the recipe and then click ‘Add’.
Repeat this last process until all items are added that relate to this Recipe. Once this is completed, you will be able to see the price breakdown of your recipe, per item, in the middle section. You can see the Total Item Cost and then the Percentage of the Total Cost for that item.
Once all your items are added, you can see the Total Costings for your recipe in the bottom section of the page. You can see the Total Cost of the recipe which is the cost of each Item on the Recipe added together. Next is the Portion Cost which is calculated by dividing the Total Cost by the number of Portions the recipe makes. The Contribution Margin is calculated by the Menu Price for the Recipe (Excluding GST) minus the Portion Cost. And finally, the Food Cost Percentage is calculated by dividing the Portion Cost by the Menu Price (Excluding GST).
Duplicate a Recipe
A Recipe can be duplicated when you want to create a new recipe which is very similar to a previously created recipe (ie, a similar menu item or the recipe for the same item has been altered).
To-do this, click Recipes and then click Recipes from the drop-down list.
Here you can see a list of your current Recipes. Find the one you want to duplicate and click ‘Copy’.
A duplicated Recipe will then appear which will contain all of the previous Recipes details and Recipe Items.