If you only recost when vendor invoices feel painful, you are already behind. Most margin leaks are small, quiet, and cumulative.
This template gives you a weekly 30-minute recosting workflow.
Quick Summary
- Recost top movers weekly, not quarterly.
- Update cost per serving before discussing price increases.
- Track contribution per item, not sales dollars only.
- Use stop rules to force action before month-end.
Why This Matters in 2026
USDA ERS (updated January 23, 2026) reported:
- Food-away-from-home CPI was 4.1% higher in December 2025 than December 2024.
- 2026 forecast for food-away-from-home prices: +4.6%.
If your model still uses old costs, your menu is priced against history, not today.
Core Formula
unitCost = purchasePrice / usableQuantity
itemCost = sum(unitCost x usagePerItem)
contributionPerItem = menuPrice - itemCost - variableChannelCost
Weekly Template (Top 12 Items)
- Update latest purchase prices for key ingredients.
- Recalculate usable unit costs.
- Rebuild item cost for top 12 SKUs.
- Compare current vs previous contribution per item.
- Flag items with contribution drop over threshold.
Suggested threshold:
- contribution drop >= 8% week over week
Worked Example
Item: chicken rice bowl
- Previous item cost: $5.90
- Updated item cost: $6.35
- Menu price: $13.95
- Variable channel cost: $0.80
oldContribution = 13.95 - 5.90 - 0.80 = $7.25
newContribution = 13.95 - 6.35 - 0.80 = $6.80
change = -$0.45 (-6.2%)
One item can look small. Across 400 orders, that is a meaningful weekly leak.
30-Minute Operating Cadence
- 10 min: price updates from invoices
- 10 min: formula refresh for top SKUs
- 10 min: action decisions (keep, reprice, re-portion)
Consistency beats complexity.
Stop Rules
- Two consecutive weeks with contribution decline on top 5 items.
- Prime-cost trend rising for 3 straight weekly checks.
- One key ingredient up more than 10% without menu response.
Common Mistakes
- Monthly-only recosting.
- Tracking revenue without contribution.
- Updating price before updating recipe cost.
- Using one blended assumption across all channels.
Related Guides
- US Menu Price Elasticity Test Playbook (2026)
- US Channel Mix Profit Model (2026)
- US Ingredient Cost Calculator Guide (2026)
- Prime Cost Guide
KitchenCost helps you update ingredient and recipe costs fast, so weekly recosting is actually usable.
Try KitchenCost.