Transcript Title of Chapter

Using Standardized Recipes to
Determine Standard Portion Cost
3
OH 3-1
3-1
 Controlling Foodservice Costs
Chapter Learning Objectives
 Explain why a standardized recipe is important
for cost control and product consistency.
 Describe information included in a standardized
recipe.
 Compare “as purchased” and “edible portion”
methods in determining the cost of recipe
ingredients.
 Develop a recipe cost card using a standardized
recipe.
OH 3-2
Standardized Recipes
Ensure Consistency In
 Ingredient quality
 Preparation method
 Portion size
 Service method
OH 3-3
Standardized Recipes Identify
 Ingredient details (quality)
 Ingredient weights and measures
 Necessary equipment and tools
 Volume (number) of portions
OH 3-4
Standardized Recipes also Include
 Preparation time
 Storage and preparation information
 Cooking method(s)
OH 3-5
Sample Standardized Recipe
OH 3-6
Standardized Recipes
 Allow for accurate purchasing
 Help ensure compliance with
“Truth In Menu” laws
 Assists in training new employees
 Makes it possible to “cost” the recipe accurately
OH 3-7
Recipe Ingredient Costing Alternatives
 As Purchased (AP) method
 Price of an item before any trim or waste
are considered
 Example—unpeeled, whole potatoes
 Edible Portion (EP) method
 Price of an item after all trim and waste has been
taken into account
 Example—peeled, cubed potatoes
OH 3-8
AP and EP
 As Purchased (AP) refers to products as the
restaurant receives them.
 Edible Portion (EP) refers to products as the
guests receive them.
OH 3-9
Comparison of AP and EP Weights
OH 3-10
Managers Must
1.
2.
OH 3-11
Determine if recipe
ingredients are
listed in AP or EP
formats.
Apply the correct
costing method to
the ingredients.
3.
Use the information
to price menu items.
4.
Periodically re-cost
recipe ingredients.
EP Amounts
 Because many food
items shrink when
they are cooked,
managers must know
exactly how much
cooking loss to
expect.
OH 3-12
Ways to Estimate Yields
 Butcher’s tests
 To measure loss from deboning, trimming, and
portioning meats, fish, and poultry
 Cooking loss tests
 To measure loss from the actual cooking process
 Conversion charts
 Tell the expected or average loss of an item from
(AP) to (EP)
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Creating Recipe Cost Cards
Step 1 – Copy the ingredients from the
standardized recipe card to the cost card.
Step 2 – List the amount of each ingredient used.
Step 3 – Indicate the cost of each ingredient as
listed on the invoice.
OH 3-14
Creating Recipe Cost Cards continued
Step 4 – Convert the cost of the invoice unit to
the cost of the recipe unit.
Example
 Milk purchased by the gallon for $2.80
 Yields eight recipe-ready (EP) pints at $0.35 each.
($2.80 ÷ 8 pints = $0.35 per pint)
OH 3-15
Creating Recipe Cost Cards continued
Step 5 – Multiply the recipe unit cost by the amount
required in the recipe.
Example
 Recipe amount required—3 pints
 Cost per pint—$0.35
 Ingredient cost—$1.05
(3 pints x $0.35 per pint = $1.05)
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Creating Recipe Cost Cards continued
Step 6 – Add the cost of all ingredients.
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Creating Recipe Cost Cards continued
Step 7 – Divide the total recipe cost by the number
of portions produced.
Example
 Total recipe cost—$145.50
 Total recipe yield—50 portions
 Cost per portion—$2.91
($145.50 ÷ 50 portions = $2.91 per portion)
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How Would You Answer
the Following Questions?
1.
The cost of most AP food products is higher than their
EP cost. (True/False)
2.
Which of the following is NOT true about recipe cost
cards?
A.
B.
C.
D.
3.
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They help establish menu selling prices.
They reduce food production time.
There should be one for every menu item.
They inform managers about how much it costs to
make a single portion of an item.
Software programs designed to help foodservice
managers create recipe cost cards are readily
available. (True/False)
Key Term Review
 As purchased (AP) method
 Butcher test
 Conversion chart
 Cooking loss test
 Edible portion (EP) method
OH 3-20
Key Term Review
 Portion size
 Recipe cost card
 Shrinkage
 Standard portion cost
 Standardized recipe
OH 3-21
Chapter Learning Objectives—
What Did You Learn?
 Explain why a standardized recipe is important
for cost control and product consistency.
 Describe the information included in a
standardized recipe.
 Compare “as purchased” and “edible portion”
methods in determining the cost of recipe
ingredients.
 Develop a recipe cost card using a standardized
recipe.
OH 3-22