Costs of a Food service

Operation

Expenses

Labor Total cost of labor employed in the

establishment.

Expenses

Overhead Controllable Expenses

Food, Labor, Supplies Non Controllable Expenses

Rent, Utilities, Advertising, Insurance

Expenses

Food Cost To control Food cost, standards must be

implemented Quality Quantity Portion size Yield

The most important standards are the recipes

Standardizing Recipes

Recipe NameID numberPortion SizeYieldIngredientsWaste %Edible ProductAs Purchased

Conversion MeasureIngredient costSubtotal costQ FactorTotal CostAdditional CostFood cost %

Portions

The number of servings that one preparation of the recipe produces.

Portions are needed to determine the portion cost For Example

Recipe Cost = 12.90 Portions = 10 12.90 / 10 = $1.29 portion cost

Example A Recipe for Chicken Pot Pie makes 10

cups. A portion in considered 1 cup. How many portions are there? 10 / 1 = 10

Example SOUP

Recipe Yield 2 gallons Serving size 8 oz

How many Portions are there?

Yeild % EP/AP = Yield % Edible Portion / As Purchased = Yield %

Yield % Sample You can find yield % by performing a cut

test. A 50# Bag of carrots is purchased After Peeling and dicing, 45# remains What is the Yield %?

Yield % 45/50 = 90%

Using Yield % Whole carrots cost $1.00 per pound.

How much do peeled carrots cost? Take the original cost and divide by

yield % to get the true cost. 1.00 / .90 = $1.11/lb

One more… Red snapper has a yield of 30%. Red

Snapper fillets cost $12.99/lb and the whole fish cost 3.50/lb.

How should you purchase your snapper?

How much should I buy? Ep/ap = yield% Ap = ep/yield %

Example A recipe calls for 5 lbs of diced pumpkin.

Pumpkin has a yield of 60%. How much should you buy?

5 / .60 = 8.33 lbs

One More You have a banquet for 100 people.

They will be eating roast beef and each guest will be an ½ lb or 8 oz portion. The only issue is, when you roast the beef, it shrinks 20% which means the yield is 80%. How much beef should you purchase?

Food Cost

Expressed as a percentage Cost of food / sales price

Cost of food = $2.00Sales Price = $6.00Food cost = 33%

Example

Chicken Parm $9.99 8 oz chicken breast1.50 2 oz sauce .25 1 slice cheese .40 12 oz pasta .55 Fresh basil (garnish) .05

What is the food cost???

Food Cost % BLT 2 pieces of bread .15 Bacon .60 Lettuce .25 Tomato .25

You would like a 30% food cost, how much can you sell the BLT for?

Determining Sales Price

Desired food cost % Direct competition Labor intensity Demand (popularity)

Formulas to know

YIELD % = EP / AP EP = Starting weight – waste AP = EP/Yield % Food cost % = cost of product / sales

price Portion Cost = Total Cost of Recipe /

servings

Portion Cost Example

Clam Chowder costs $22.00 per gallon to make.

There are 16 servings at 8 oz per serving.

What is the cost of 1 serving?

Classwork / Homework Standardize your recipes – put them in

easy to use formats Using the price sheet, fill out recipe cost

form for all 6 recipes to determine sales price

Create your menu Turn in all 13 pages next week