costs of a food service operation
DESCRIPTION
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 - PowerPoint PPT PresentationTRANSCRIPT
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