Question 1

What is a scaling factor?

Accepted Answer

The scaling factor is a multiplier used to adjust a recipe's ingredients to a different yield. It's calculated by dividing the desired number of servings (Target Servings) by the original recipe's yield (Original Servings). For example, to scale a 10-serving recipe to 50 servings, the scaling factor is 50 / 10 = 5.

Question 2

Why can't I just multiply all ingredients by the scaling factor?

Accepted Answer

While you can for most 'bulk' ingredients, some ingredients don't scale linearly. Spices, salt, and leavening agents (like baking soda) can become overpowering or ineffective if scaled directly. It's best to scale them with a slightly lower factor and then adjust to taste.

Question 3

How does 'Ingredient Cost per 100 Servings' help?

Accepted Answer

This metric standardizes your ingredient cost, making it easier to apply to events of any size. It represents the bulk cost of ingredients needed to produce 100 portions of a dish. This is often a more practical way to measure cost for caterers than a single-serving cost, especially when buying ingredients in bulk.

Question 4

What should be included in 'Overhead Cost per Serving'?

Accepted Answer

Overhead includes all the non-labor, non-food costs of running your business, allocated on a per-serving basis. This can include rent for your commissary kitchen, utilities, insurance, marketing, administrative salaries, and equipment depreciation. Accurately calculating this is key to ensuring true profitability.

Question 5

Is markup the same as profit margin?

Accepted Answer

No, they are different. Markup is the percentage you add to your total direct cost to get the selling price. Profit Margin is the percentage of the final selling price that is actual profit. For example, if your cost is $10 and you add a 100% markup, your selling price is $20. Your profit is $10, which is a 50% profit margin of the selling price.

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