Costing and Converting Recipes
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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