What is margin drift?
Margin drift is the profit you lose without noticing when ingredient costs rise but your sell prices stay the same. You priced a product to hit a healthy margin, but months later your flour, butter and packaging all cost more โ and unless you've re-priced, every sale now makes less than you think. Because it happens a few pennies at a time, most small food businesses only spot it when a whole product line is barely breaking even.
Cost today = Original cost ร (1 + inflation)^(months รท 12)
Why spreadsheets cause it
A spreadsheet freezes your costs on the day you built it. It has no idea a supplier put their prices up last week, so it keeps showing the old, flattering number. Keeping it honest means manually re-costing every recipe every time any ingredient moves โ which almost nobody has time to do. So the gap between your spreadsheet and reality widens, silently, month after month.
How often should you re-cost?
There's no legal rule, but a good guide is to review costs whenever a key ingredient price changes, and at minimum every quarter. In periods of high food inflation, monthly is safer. The bigger the gap between re-costing, the more margin drifts โ which is exactly what the tool above estimates.
Stop guessing โ keep costs live
This calculator gives you a snapshot of the damage. FoodCore fixes the cause: update a supplier price once and every recipe that uses that ingredient recalculates instantly, so you always know your true margin and can re-price the day costs move.