Cost Per Serving

Definition:
Cost per Serving is the total cost of all ingredients used to make one unit (or serving) of a menu item. It’s the building block of Recipe Costing, and a critical input for calculating Pour Cost, Markup, and profitability.

Formula:
Cost per Serving = Σ (Unit Cost × Quantity Used) for each ingredient in the recipe

In Context:
Every menu item in Spec has a cost per serving based on the actual products and quantities used. This lets you instantly see how ingredient prices affect margins — and adjust recipes or prices accordingly. Spec also tracks how changes to Units of Measure or product costs ripple across recipes, so your cost data stays accurate without constant spreadsheet updates.

Example:
A Negroni spec using:

  • 1 oz gin @ $0.90/oz

  • 1 oz sweet vermouth @ $0.60/oz

  • 1 oz Campari @ $0.95/oz
    Total cost per serving = $2.45

That number feeds directly into your Target Cost % or Target Profit Margin calculations to set a profitable menu price.

Pro Tip:
Cost per serving doesn’t just help with pricing — it’s essential for batching, menu analysis, and even Inventory Value accuracy. Keep recipes updated to ensure your numbers reflect reality.

Related Terms: