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Food & hospitality / Question & answer

Food truck: Should damaged or spoiled portions count in the denominator?

Spread batch costs across portions that can actually be sold.

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Food truck / service shift economics
Answer

Use saleable yield, with loss below 100%. Packaging, delivery and fixed overhead must be added separately.

Try this with your own numbers

Formula and worked example

Portion cost = (ingredients + labour) / (portions × (1 − loss))

Example figures
InputExample
Ingredient batch cost90
Batch preparation labour30
Produced portions60
Unsaleable share5 %
Calculated result2.1053 per saleable portion

Choose reliable inputs

Track purchased quantities, usable yield, labour and waste before deciding on a selling price. For this food truck calculation, use recipe sheets, supplier invoices and stock counts and a consistent definition of one service shift.

  • Ingredients: include the portion belonging to this service shift or reporting period, and record where the value came from.
  • Staffing: include the portion belonging to this service shift or reporting period, and record where the value came from.
  • Site fees: include the portion belonging to this service shift or reporting period, and record where the value came from.

Use the same currency for every money input. Do not mix weekly costs with monthly revenue, or count the same expense in both an itemised cost and allocated overhead.

Should damaged or spoiled portions count in the denominator?

Use saleable yield, with loss below 100%. Packaging, delivery and fixed overhead must be added separately.

Compare a different assumption

What if this input changes?

If ingredient batch cost rises by 10%, this example changes by 0.1579 per saleable portion. This shows the effect of one change; it does not predict what will happen.

Open the calculator, save your baseline, then change the input supported by the least reliable estimate in your records. Compare both scenarios before committing to a price or capacity promise.

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