Transcript Costing and Converting Recipes

COSTS OF A FOOD SERVICE
OPERATION
EXPENSES
• Labor
• Total cost of labor employed in the
establishment.
•
•
•
•
•
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Kitchen
Waitstaff
Busboys
Maintenance
Hosts
Management
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
FOOD COST
• Expressed as a percentage
• Cost of food divided by sales price
Cost of food = $2.00
Sales Price = $6.00
Food cost = 33%
DETERMINING FOOD COST BY DESIRED
FOOD COST %
• Steps
• 1. add cost of all ingredients
• 2. divide by number of portions
• 3. divide by desired food cost %
LASAGNA
• 1 lb pasta
• 12 oz sauce
• 1 lb cheese
• 1 lb ground beef
$2.00
$.50
$4.00
$3.80
• This recipe makes 4 portions. Your
restaurants desired food cost % is 30%. How
much should you sell it for?
DETERMINING FOOD COST BY DESIRED
FOOD COST %
• Chicken Parm costs $3.00 to
make.
• Your desired food cost % is 30%.
• How much should you sell this for?
• $3.00 / .30 = ?
CHICKEN PARM
•3.00 / .30 = $10
DETERMINING SALES PRICE
•Desired food cost %
•Direct competition
•Labor intensity
•Demand (popularity)