Understand Product cost, food cost, and margin

Overview

• Product cost uses the linked Recipe's cost per output unit—not the Recipe's total batch cost.
• Selling price uses the selected Store's price override when one exists; otherwise it uses the Business Product base price.
• For GST 15% Products, MiniTill removes GST from the selling price before calculating food-cost percentage and gross margin.
• Gross profit is Net selling price − Product cost.
• Food cost % is Product cost ÷ Net selling price × 100.
• Gross margin % is Gross profit ÷ Net selling price × 100.
• If the Recipe cost is incomplete, MiniTill reports the Product cost as unavailable rather than presenting a misleading margin.

When to use this

• Use Product Costs when reviewing menu price changes, supplier increases, Store-specific pricing, or products that exceed their target.

Step-by-step

1. Select the Store whose purchasing/selling context you want to review.
2. Open Costing → Product Costs.
3. Open the Product.
4. Review Recipe, Recipe yield, batch cost, cost per output unit, selling price, net selling price, gross profit, gross margin, and food cost.
5. Compare food cost with the effective target.
6. Trace warnings to the Recipe before acting on an unavailable result.

Common mistakes

• Do not compare Recipe batch cost directly with one Product selling price.
• Do not calculate margin against GST-inclusive selling price when the Product is GST-rated; MiniTill uses the GST-exclusive net price.
• Do not assume two Stores have identical Product cost/margin when their supplier or selling-price data differs.

Troubleshooting

• If selling price is unexpected, check the Store price override.
• If Product cost is unavailable, inspect Recipe warnings and Ingredient purchase options.
• If food-cost percentage differs from a quick calculator using the shelf price, check GST removal.