Recipe to Revenue: How Costs Flow Through Your Business
Understand how ingredient costs build into recipe costs, flow into product pricing, and ultimately appear as revenue and profit in your reports.
Understand how ingredient costs build into recipe costs, flow into product pricing, and appear as revenue and profit in your reports.
The Cost Chain
| Stage | What Happens | Where |
|---|---|---|
| 1. Ingredients | Set cost per unit (e.g., flour $0.80/kg) | /dashboard/ingredients |
| 2. Recipe | Add ingredients with quantities → cost auto-calculated | /dashboard/recipes |
| 3. Product | Link to recipe → set sell price based on cost + markup | /dashboard/products |
| 4. Order | Product added to order → revenue and COGS tracked | /dashboard/orders |
| 5. P&L | Revenue − COGS − Expenses = Net Profit | /dashboard/reports |
Key Concepts
🔄 Unit Conversion
Your recipe calls for 2 cups of flour but your ingredient is stored in grams? BakeOnyx converts automatically — costs are always accurate regardless of the units you prefer.
📐 Cost Per Serving
Recipe costs $15.00 and yields 12 servings → cost per serving = $1.25. Sell at $4.50 → margin = 72%. This is the number that determines your profitability.
🤖 What BakeOnyx Automates
- Recipe cost calculation from ingredient costs
- Unit conversion between recipe and stock units
- Product cost from linked recipe
- COGS tracking on delivered orders
- Cost cascade when ingredient prices change
- Margin calculation and food cost reports
💡 Pro Tip
Get your ingredient costs right FIRST — everything else flows from there. Target 25-35% food cost. Above 40%? Review quantities or raise prices. Ask Bake Buddy to analyze your margins instantly.