Substitution cost
Substitution cost is the true cost difference between two ingredients, compared at edible-portion cost rather than invoice price. A cheaper item with a worse yield or more prep labour is frequently more expensive once both are accounted for.
Worked example · A substitution that costs money
- Current: pre-trimmed fillet, $18.40/lb at 96% yield
- EP $19.17/lb
- Proposed: whole fish, $9.80/lb at 48% yield
- EP $20.42/lb
- Additional butchering labour, 25 min/case
- ≈$0.90/lb
- Proposed option costs more by
- $2.15/lb
The invoice price is 47% lower and the real cost is 11% higher. Whole fish can still be the right call — for quality, for the trim you can use elsewhere — but not on the price tag alone.
Run every substitution through the same three checks: yield-adjusted cost, labour difference, and whether anything on the menu names the ingredient. The third one is not a cost question — see value engineering.
| Check | Question | Kills the swap if |
|---|---|---|
| Yield-adjusted cost | What does a usable pound cost, not a purchased one? | EP cost is higher despite a lower invoice price |
| Labour | How much extra prep time, at what rate? | The labour exceeds the ingredient saving |
| Menu language | Does the menu name the ingredient? | It does — change the copy or don't swap |
Run the numbers
Yield & EP cost calculator
The guide that works it through
How to Raise Menu Prices Without Losing Regulars
Which dishes to raise, by how much, when to do it, and how to communicate it — plus the break-even volume math that shows how much room you actually have.
Related terms
Value engineering
Reducing a dish's cost without reducing what the guest perceives they're getting.
Yield percentage
The share of a purchased ingredient that survives trimming, peeling and cooking to reach the plate.
Edible portion vs. as-purchased
AP is what you paid the supplier; EP is what the usable part actually costs after loss.