Calculating Food Costs for Cold Pressed Juice

Food Cost Basics

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Under normal conditions, a food service establishment needs to keep average food cost under 34% of revenue in order to make a healthy profit. That being said, a retail store that sells bottled juice can achieve a lower food cost, and should strive for 20% &#; 25% average food cost for organic juice.

This means that if the juice is selling for $10.00 / bottle, the cost of the actual produce that goes into the juice should cost no more than $2.50, on average.

Keep in mind that the actual food can vary quite a bit between recipes, as long as the average food cost stays under the 20%-25%.

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Here is an easy guide to estimate food costs, without actually making any juice.

Step #1: Determine how much of each ingredient, in weight, goes into the recipe.

Hint: The Goodnature X-1 takes between 20-30 lbs of produce per juicing cycle, so the total weight of the recipe should be 20-30 lbs (9-13 kg).

Step #2: Get current pricing of the produce from your local distributor. If you do not yet have a distributor, you can use the prices at the grocery store, but keep in mind that those prices will be much higher.

If your distributor or grocery store doesn&#;t have some items sold by weight, e.g. a &#;bunch of kale,&#; you need to weigh the item to determine the weight.

Step #3: Calculate the total cost of the recipe by adding the cost of each ingredient.

Step #4:

In general, each pound of produce makes about 10 oz. of juice, so for a 16 Oz / 500 ml of juice, you need about 1.6 lbs / .73 kg of produce.

So use the following formula to achieve an estimated food cost for each bottle of juice:

FC per Bottle = Total Cost / Total Weight in lbs * 1.6

or

FC per Bottle = Total Cost / Total Weight in kg * .73

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Example Recipe

Step #1:

My make believe recipe uses:

15 lb apples
5 lb celery
3 lb kale
2 lb lemon
1 lb ginger

Total Recipe Weight: 26 lbs

Step #2:

My local organic prices are (I&#;m just making these up):
Apples : $1.50 / lb
Celery: $1.25 / lb
Kale: $3.00 / lb
Lemon: $1.00 / lb
Ginger: $2.00 / lb

Step #3:

15 * $1.50 + 5 * 1.25 + 3 * $3.00 + 2 * $1.00 + 1 * $2.00

Total recipe cost: $41.75

Step #4:

FC Per Bottle = Total Amount / Total Weight in lbs * 1.6
FC Per Bottle = $41.75 / 26 * 1.6
FC Per Bottle = $2.57

Conclusion:

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If we already know we are charging $10 per bottle, then we can do the following calculation:
Cost / Price = FC%
$2.57 / $10.00 = 25.7%

We could also work backwards, and determine the minimum price we can sell the juice for, going on our target food cost.

If we were going to stick to the 25% target food cost, we could do the calculation to determine the minimum price:

Cost / 25% = Minimum price per bottle
$2.57 / .25 = $10.28

So now we know that the juice has to sell for at least $10.28 to achieve a 25% or lower food cost.

Please note that these numbers and formulas are estimates, and to achieve exact figures you will have to actually make the juice.

About The Author

Charlie Wettlaufer

President and CMO - Goodnature
Host - Cold Pressed Truth and Goodnature Radio
Creator - JuiceCon

@cwjuice

Cold Pressed Truth

I&#;ve been around juicing all my life. My Dad built his first hydraulic juice press in and founded the company Goodnature Products, Inc. I have incredible memories of having &#;cider parties&#; when we would invite all the people in our rural neighborhood over to make apple juice. To this day, when I taste apple juice made on a Goodnature press, a rush of nostalgia runs through my body.

I pride myself on guiding our clients into the world of cold-pressed juice and showing them how much fun this industry can be. I love talking business, technology, and marketing. My missions is to carry on my Dad's goal - one day make Goodnature a house-hold name.

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People keep asking me what juicers I use and where I bought them. So, I thought I would put together a quick list of what I have and where I bought them. However, before I proceed, I need to emphasize that I&#;m not an expert as I have only been juicing since 1st January. But, hopefully I can help people a little with a few tips. If you can add anything else then please post in the comments. The first juicer that I bought was this one from Central Department Store. The brand is Philips though there is no model number. The juicer had been reduced to 3,999 Baht which made it one of the cheapest in the store. It turned out to be a good buy as it is fast, reliable and most importantly, easy to clean. I could juice and clean up in about 10 minutes.  The chute at the top is large which meant it could take whole apples which of course cut down on preparation time. I would recommend this one for any hobby juicer.

Strictly speaking this is not a juicer as it doesn&#;t separate the liquid from the pulp. A lot of fruit juice stalls around town use these to make smoothies. I bought this Philips model a few months later as I wanted to alternate between juices and smoothies. With the blender you eat the whole fruit which is obviously good for you. To make my smoothies I don&#;t use ice to make them cool. I chop up fruit like bananas and ripe mangoes and put them in the freezer. I then use these as ice cubes in my smoothies. I bought this blender at Big C. You should find it at Tesco lotus and Central as well. There are quite a few to choose from. I chose this one because of the &#;quick clean&#; button and the fact that you can screw off the bottom of the jug. This makes it easier to clean. You probably should buy the most powerful one that you can afford. You can buy them for about 1-2,000 Baht. Top end blenders are 15,000 Baht.

The Hurom slow juicer was the one that I was looking at right from the beginning. But, as the price is around 12,000 Baht I didn&#;t think I could justify it. At the beginning I thought juicing would be a passing fad and that buying this expensive juicer would be a waste of money. Which is why I went for the cheaper Philips juicer in the end. However, after I had been juicing for three months and had already lost 10 kilos, I decided I could justify buying the Hurom. The advantage with a slow one is that it keeps more of the nutrients, the juice doesn&#;t separate so much and you can keep the juice in the fridge for 2-3 days. The pulp was also much drier and so I was getting more juice for my money. I will probably give away my old Philips juicer later, but I still use it sometimes when I have unexpected guests and I want to quickly juice something like guava or oranges. If I was you, I would only buy the Hurom if you are sure you will get your money&#;s worth. I bought the Hurom 500 model at Central Department store at Chidlom. If you have a Central 1 card you get a discount.

Let me know in the comments if you have bought any other juicers in Bangkok and where.

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