Transcript Costing and Converting Recipes

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 Name
ID number
Portion Size
Yield
Ingredients
Waste %
Edible Product
As Purchased
Conversion Measure
Ingredient cost
Subtotal cost
Q Factor
Total Cost
Additional Cost
Food 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 = $2.00
Sales Price = $6.00
Food cost = 33%
Example
 Chicken





Parm
$9.99
8 oz chicken breast
2 oz sauce
1 slice cheese
12 oz pasta
Fresh basil (garnish)
1.50
.25
.40
.55
.05
What is the food cost???
Food Cost %
 BLT
2
pieces of bread
 Bacon
 Lettuce
 Tomato
 You
.15
.60
.25
.25
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