Excel vs. Recipe Costing Apps: Which One Should You Use?

Thinking about tracking your recipe costs but unsure which tool to use?

Both spreadsheets (Excel, Google Sheets) and dedicated apps have their strengths. Here’s an honest comparison based on real-world usage.

Spreadsheet Errors Are More Common Than You’d Think

Before diving in, consider this: according to research by Professor Ray Panko at the University of Hawaii, 88% of business spreadsheets contain at least one error. A 2024 study published in Phys.org found that number could be as high as 94%.

For recipe costing—where calculation mistakes directly affect your margins—this is worth knowing.

Spreadsheet Characteristics

Advantages

Low or No Cost If you already have Microsoft 365 or use Google Sheets, there’s no additional expense.

Complete Flexibility Build sheets exactly how you want them. Pivot tables, advanced charts, macros—spreadsheets offer powerful analysis capabilities.

Desktop Efficiency Working with large datasets is easier on a big screen.

Drawbacks

Formula Learning Curve Proper recipe costing in a spreadsheet requires knowing:

• SUM, AVERAGE (basic aggregation)
• VLOOKUP or INDEX/MATCH (ingredient price lookups)
• Cell reference types ($A$1 vs A1)
• Cross-sheet formulas

According to QuickBooks, 42% of small business owners surveyed admitted they had limited financial literacy before starting their business. If spreadsheet formulas aren’t familiar territory, setup takes time.

Manual Updates When ingredient prices change, you need to find and update every related recipe. If your formulas are properly linked, changing the ingredient sheet propagates automatically—but building those formulas correctly is the hard part.

Prep Items Get Complicated Sauces, stocks, batters—when these show up in multiple menu items, formula complexity grows exponentially:

Tomato sauce cost changes
→ Check 3 pasta dish formulas
→ Check 5 pizza formulas
→ Check 2 risotto formulas
→ Check combo meal formulas
→ Did I miss anything?

One broken link means your entire cost structure is wrong—and finding the error isn’t easy.

Version Control Issues “Recipe_Costs_Final.xlsx”, “Recipe_Costs_Final_v2.xlsx”—file proliferation makes it hard to know which version is current.

Recipe Costing App Characteristics

Advantages

No Formulas Required Enter ingredient names, prices, and quantities. The app handles calculations. No VLOOKUP knowledge needed.

Automatic Updates Change an ingredient price once, and every recipe using that ingredient updates automatically. Same for prep items.

Update onion price (once)
→ 15 recipes using onions update automatically
→ Prep items containing onions update
→ Menu items using those prep items update

Mobile Access Check prices at the market. Verify recipe costs in the kitchen. No laptop required.

No Formula Errors Calculation logic is fixed, so there’s no risk of accidentally breaking a cell reference that cascades through your entire system.

Drawbacks

May Cost Money Some apps are free, but advanced features often require subscriptions or one-time purchases.

New Tool Learning Each app has its own interface. There’s an adjustment period.

Limited Customization Unlike spreadsheets, you can’t build any view or calculation you want. You’re limited to what the app offers.

Data Portability Switching apps can mean tedious data migration.

Time Cost Comparison (Example)

Assuming monthly ingredient price updates:

Spreadsheet

• 20 ingredients × 5 min each (verify & input) = ~100 min
• Check/fix related recipe formulas = ~60 min
• Total: ~2 hours 40 min/month

App

• 20 ingredients × 1 min each (input only) = ~20 min
• Related recipes = automatic
• Total: ~20 min/month

Difference: ~2 hours 20 min per month

At an average US wage around $15/hour, that’s roughly $35/month in time value. Of course, actual time varies based on your spreadsheet skills and menu complexity.

Decision Framework

Spreadsheet Makes Sense If…

An App Makes Sense If…

Key point: If you use prep items, apps are significantly easier. Even a 3-item menu gets complicated when prep items are shared across dishes.

Decision Flowchart

Q1: Do you make prep items (sauces, stocks, batters)?
    → Yes: App recommended (automatic cascading updates)
    → No: Continue to Q2

Q2: Are you comfortable with spreadsheet formulas?
    → Yes: Spreadsheet works fine
    → No: App recommended

Q3: Do you have time to invest in setup?
    → Yes: Spreadsheet (requires initial investment)
    → No: App (faster start)

Signs It’s Time to Switch from Spreadsheet to App

If any of these sound familiar, consider an app:

• You avoid opening your spreadsheet, so costs go unchecked
• Price changes sit in your “I’ll update that later” pile
• You estimate new menu costs instead of calculating them
• You’re not sure which file version is current
• A formula broke somewhere and you can’t find it

What to Look for in a Costing App

Summary

Bottom line: Neither tool is universally better. If you’re spreadsheet-savvy and need complex analysis, stick with Excel. If formulas aren’t your strength or prep item tracking is important, an app will save time and reduce errors.

Ready to ditch error-prone spreadsheets? Replace manual formulas with automatic cost tracking via the KitchenCost landing page — free to start.

Related Guides

• Recipe Costing — The complete guide to calculating recipe costs
• Semi-Finished Product Guide — Where spreadsheets struggle most: multi-layer prep items
• Food Cost Ratio Guide — The key metric you should be tracking accurately
• New Menu Cost Simulation Guide — Run what-if scenarios faster with the right tools
• Breakfast & Brunch Cost Guide — See real costing examples in action

Sources

• Almost 90% of Excel Spreadsheets Contain Errors - Solving Finance
• Study finds 94% of business spreadsheets have critical errors - Phys.org
• 20 Small Business Financial Literacy Statistics for 2025 - QuickBooks
• 2025 Minimum Wage Guide - Paylocity