CHAPTER 2

Portion Size and ProductionQuantity

An often overlooked or underappreciated aspect

of commercial food preparation is the initial

determination of portion size. Without determining an

appropriate portion size (and then applying that to the

anticipated customer count), the chef might prepare too

much food, or not prepare enough food - both of which

are costly, undesirable mistakes. There are no hard and

fast rules for these calculations, however. Each situation

depends on the chef's or manager's judgment and

experience.

A proper portion size is one that has been

determined following a thoughtful analysis of several

factors: the type of operation or event, customer

satisfaction, competition, food costs, and merchandising

concerns. Each operation must determine its own

portion standards, usually based upon a blend ofquantity, cost, and merchandising issues.

Quantity Determine the amount of each f,

item that the average patron would prefer to consume

given the time of day or meal, the event, and the total

selection offered. For example, fettuccine Alfredo can

be portioned as a 4-ounce serving for an appetizer or a7-ounce serving for an entr6e.

Cost Determine the amount of food that can

be provided for the price charged, while still covering

expenses and making a reasonable profit. For example,

20

Recipe Conversions

tl l shrimp cocktail sells for $9.95, you can determine

Irow rnany shrimp to serve by determining how much ofllrnl price can be "spent" on the cost of raw ingredients.

Merchandising Determine the amount ofent'lr portion by evaluating what will look best, attract

ullrrrlion, or fit. on or in'available serviceware. Fore!rnrrrlllc, if the only soup bowls available hold 5 ounces,

ll ts rrot necessary to prepare 7 ounces of soup per

IrFt \on.

Once the appropriate portion size is determined,

lhnl rrtrrount is multiplied by the customer count in order

ftt r'ttkrttlate the total amount to produce.

Portion Size x

Exen'l:tc 2.1

A catering company, is preparing 75 boxed

lunelrer, wlrich will each contain a 4-ounce serving offuit ralnrl, Another event scheduled for the same day

lE€ludt's li'uit salad on a buffet designed to serve 150

,Srtt, ltt t<ltal, how much fruit salad would you

Stlelpnle tlrlt thc catorcr should prepare? Why?

21

F

CHAPTER 2

Recipe Conversions

Whether 6 servings or 60, every recipe isdesigned to produce a specific amount of product,

known as yield. A recipe's yield may be expressed in

volume, weight, or servings (examples: I quart of sauce;

8 pounds of bread dough; 8 half-cup servings). ff the

expected yield does not meet your needs, you must

convert (i.e., increase or decrease) the recipe by

converting the amount of each ingredient in the recipe.

Recipe conversion is sometimes complicated bypofiion size conversions. For example, it may be necessary

to convert a recipe that initially produces 24 8-ounce

servings of soup into a recipe that produces 62 6-ouncer

servings.

Cutting a recipe in half or doubling a

done almost instinctively. What

mathematically when you do this?

To "double a recipe," the amount of each

ingredient is actually multiplied by 2.

each ingredient is actually multiplied by .5.

Although not all recipe conversions use such

nice even numbers, it is just as easy to change recipe

yields by uneven amounts as it is to double or halve

recipes. The mathematical prinqiple is the same: Each

ingredient is multiplied by a conversion factor.

ib,.,

22

Do not take shortcuts by estimating recipe

tttttounts or conversion factors. Inaccurate conversions

lelrl to inedible foods, embarrassing shortages, orwnstcful excess. Take the time to learn and apply proper

curr vcrsion techniques.

Converting Total Yield

When portion size remains the same orturlnll)ortant to your calculations, recipe yield

cottvclted by a simple two-step processl

STEP 1: Divide the desired (new) yield bythe recipe (old) yield to obtain the

conversion factor.

New Yield

= Conversion FactorOld Yield

S'I'EP 2: Multiply each ingredient quantity

by the conversion factor to obtain

the new quantity.

OklQuanilry xConversion Factor = New Quantity

CHAPTER 2 Recipe Cbnversions

Example 2.1

You need to convert a recipe for cauliflower

soup. The present recipe yields l-ll2 gallons. You only

need to make 314 of a gallon.

First, determine the conversion factor:

.75 gallon

= .50

1.5 gallons

(Need help in changing fractions to decimal numbers?

Please see your instructor for guidance.)

The conversion factor (CF) is applied to

ingredient in the soup recipe:

When calculating a conversion factor, the new

enrl old yields can be in any unit (cups, ounces, pounds,

Ftvings, and so on) as long as the numerator and the

dettrtminator are in the same unit.

For example, in the cauliflower soup exercise,

the slrne conversion factor can be obtained after first

€Onvcrting the recipe amounts to fluid ounces:

96fl. oz.

=.50192fl. oz.

(Remember, I gallon contains 128 fluid ounces!)

2.2

A recipe you normally use produces

tlute ohip cookie dough, but you need

What is the correct conversion factor?

6 lb.

t0 lb.

ofof

iriliii24 25

CHAPTER 2 Recipe Conversions

I tr srrrnmarize,the complete formula looks like this:

E*antple 2.2

'l'he original cauliflower soup recipe produced

f =l/J gullons, which is the same as 48 4-ounce servings.

l{rrw you need'l} 6-ounce servings of the soup for a

hnquet. The following steps show how this conversion

il tttnrlc.

reclpes

STEP

Converting Portion Size

A few additional steps are necessary to con

when portion sizes must also be changed.

Original Portions X

Determine the total yield of the existing

recipe by multiplying the number ofportions by the portion size.

Original Portion Size = Total Old Yield

STEP 2: Determine the total yield desired by

multiplying the new number of portions

by the new portion size.

Desired Portions x Desirecl Portion Size = TotaL New Yield

STEP 3: Obtain the conversion factor

the new total yield by the old

Total Yield (New)

by dividitotal yield.

= Conversion FactorTotal Yield (Old)

STEP 4: Multiply each ingredient quantity by the

conversion factor.

Old Quantity x Conversion Fabtor = New Quantity

27

CHAPTER 2

Total original yield is 48 x 4 oz. =

192 oz.

Desired yield is'72x6 oz. = 432 oz.

Conversion factor is calculated by dividing

desired (new) yield by original (old) yield:

432+192 = 2.25.

Old ingredient quantities are multiplied by

conversion factor to determine new

quantities:

Recipe Conversions

When a recipe's yield is increased, it sometimes

het'orncs impractical to measure the new, larger quanti-

lier hy cup, tablespoon, or the like, Your knowledge oflnFirsrrrcments will then be helpful in changing recipe

ilrrruinrls into more manageable units. For example, the

4 l/.1 tluarts of chicken stock in the Cauliflower Soup

fer'lf 'c rrtrove could be physical/y measured as 1 gallon

plrrt I pint.

? ','n. new recipe for Cauliflower Soup requires

l=1,5 cups of heavy cream. What is the most

Gnttvcnir:nt way to measure this amount of cream?

Your recipe for Devil's Food Cake makes 2mr ol'llatter. You need to make 100 cupcakes. Each:skc lirr holds 4 fluid ounces of batter. Find the

rll'tirlc conversion factor.

'l'ltc only way to learn conversion techniques is

pfncllcc, practice, practice. The review questions

thlr set'tirtn arc iln opportunity to practice a variety of

STEP 1:

STEP 2:

STBP 3:

STEP 4:

2.3

Old quantity x CF

2.25

2.25

2.25

2.25

2.25

Cauliflower, chopped

Celery stalks

Onion

Chicken stock

Heavy cream

5lb.

4

1

2 qt.

6 cups

28

ltteltt rtnrl coltvr:rsion skills.

29

CHAPTER 2

Additional Conversion Problems

When making very large recipe changes-fexample, from five to 500 portions or 600 to 36 port

-you may encounter additional problems.

mathematical conversions described above do notinto account changes in equipment, evaporation

cooking times, or unforeseen recipe errors. Goodlearn to use their judgment, knowledge of cookiprinciples, and skills to compensate for these factors.

Equipment When you change the size ofrecipe, you must often change the equipment used

well. Problems arise, however, when the producti

techniques previously used no longer work with the

quantity of ingredients. For example, if you nomake a muffin recipe in small quantities by hand

you increase the recipe size, it may be necessary

prepare the batter in a mixer. If mixing time remains

same, the batter may become overmixed, resultingpoor quality muffins. Trying to prepare a small amou

of product in equipment that is too large for the task

also affect its quality.

Evaporation Equipment changes can

affect product quality because of changes inrates. Increasing a soup recipe may require substitut

a tilt skillet for a saucepan. But because a tilt skiprovides more surface area for evaporation than does

saucepan, reduction time must be decreased to prevent

Recipe Conversions

uver lhickening the soup. The increased evaporation

esttrnl by an increased surface area may also alter the

rlr ettpth of seasonings.

Recipe Errors A recipe may contain errors inIttgrerlicnts or techniques that are not obvious whenplepnled in small.quantities. When increased, however,

rnrall rnistakes often become big (and obvious) mistakes

anrl tlrc l'inal product suffers. The only solution is to test

fErlprs carefully and rely on your knowledge of sound

ennhrrrg principles to compensate for unexpected

pflltlrrtrs.

Note that herbs and seasonings such as salt are

fgely rnultiplied by the mathematical conversion factor

Iltett r'rrlarging a recipe. In other words, if you increase

I fer'ipc cight times you do not automatically increase

lhe tlryrnc and salt in that recipe eight times. You should

Ely irrstcud on experience and taste to determine how

ffiUtlr ol'cach seasoning to add.

Tlme Do not multiply time specifications given

a t'ecipe by the conversion iactor used with the's ingredients. All things being equal, cookingwill not change when recipe size or yield is

gcrl, For example, a muffin requires the same

ol baking time whether you are preparing one

14 dozen. Cooking time will be affected,

hy changes in evaporation rate or heat

cuuscd by changes in pots and pans or

or

vel',

'liott

30

wAre.

31

r' -- -- -'l

CHAPTER 2

Mixing time may change when recipe size i

changed. Different equipment may perform mixitasks more or less efficiently than the equi

previously used. Again, rely on experience andjudgment.

Exercise 2.4

You have prepared a standard muffin reci

several times with no problems. The chef asks you

make four times as many muffins. You convert trecipe properly but the batter seems much thickernormal and the mixing bowl you always use isn't I

enough. The baked muffins are unacceptable and

be served. What might have gone wrong?

2 oz.4 oz.1Tbsp.t/2lb.2-U2lb.ll2 cr,tp

2 tsp.l-112 pt.I cupto taste

92

Review Questions for Chapter 2

€anvert the following recipes as indicated:

1, Becf Tenderloin with Mushroonrs

Porlions: 8

Portion size:8 oz.Butter0nionsFlourMushroomsTenderloinWhite WineMustardBrown Sauce

CreamSalt a Pepper

Equash

MIkButtcrEaltPagrika

3 cupsll4 cup2 Tbsp.1 tsp.1/4 tsp.

Eanvert recipe to yield 18 8-ounce serving.

Summer Squash

4 servings

recipe to yield 47 servings.

33

Convert recipe to yield 2-ll2 qt.

4. Soft Dinner Rolls

CHAPTER 2

Vanilla Sauce

Yield: 2-112pt.Egg YolksSugprMitkVanilla

Portions: 64

Portion size:

WaterYeastFlourSaltSugarMilk PowderShorteningButterEggs

CHAPTER 33.

t28 oz.1 qt.I Tbsp.

600 ml.6og1300 g

3og120 g

6og5og7oe120 ml.

UNIT ANDRECIPE

COSTI NG

5.

Convert recipe to yield 140 Z-otrnce rolls.

Convert recipe to yield 20 l-ll4 ounce rolls.

List and explain three things that can affect successful recipechanges.

LEARNING OBJECTIVES:

Understand how to calculate unit cost

Understand and use typical invoices

Understand how to calculate the cost of a recipe

Undcrstand how to calculate portion cost

05

I

CHAPTER 3 Unit and Recipe Costing

=.018 x 2=$0.037t6

The following exercise will help you

unit costing procedures and provide additionalwith measurement equivalents

Etercise 3.1

Flntl the unit cost for each item:

.30

ltem A.P. package Cost Unit Cost

flour, cake 50# bag t|.20 lb.

Beans, fresh 28# bushel 20.72 lb.

Tonrnto puree #10 can 3.10 cup

gallon

50# bag

cratel12 bunches

25#bag

36# case

2.30

9.45

4.40

17.40

14.00

42.70

cup

Tbsp.

bun

lb.

ea.

I. UNIT COST = The price paid to acquire one of

the specified items.

i

I$llffit,

38

flaU9 heads 16.25

39

Bffil '

40 41

CHAPTER 3

Cost information is usually provided to the cor manager on purchase invoices, such as the ones sho

on the following pages. It may also be necessary

examine a product's label or package to determine so

information such as size or weight.

Exercise 3.2

Examine the following invoices to determine

unit cost for these items:

Potatoes $

Parsley per bun

Apples per each

King Crab Legs per each

Wine Vinegar per cup

per oz.

WOG Fryers per lb.

Sugar

Tea per servmg

ooootr

tiE

iB

$lnflu6N{

jo

,:>1FIT Jdf<E!fEil = EI o6{I oFI,T G(!., u<-I d,,a O( rI oaru

A^Fz.'YFHEI to J o

,I IO:ELr ooo

6$

I

oNr)6

IJNuctrl

dorO:

EElJ .r48;U lrlPHri.''(lit

TTTg$

r!c* B*H*

li H$ Es sI a 80ft ?R*

m

I t-i EII *sl* E;

o,iE E

fiEsFg 63E "o

!8. *

EiHil

H:

8r

ffilr

<a<t\ atss us

4/6 >DZA !Ho<N LgNt6< <a<

,aF ,ryx4 Z<*UilU OZZ>6E-uu,rJ fJo

,n,ag 4uL

Pc3o

o2E)F.t&oHtroFrJoE.

EEifr:H,ltse"*tqa

IXszoQAIrUz

Xou

taOL*ZL<OU>HOxL)

6

HE

ozzoFxt!o

Ilrlrovtoo

N

io

EoEg

44 45

Unit and Recipe Costing

Recipe Cost

A standard recipe, listing"the ingredients and

Iheir amounts as well as the number and size of the

porlions, must be established in order to determine the

gurl of the completed menu item. Once an accurate

ftei1rc is written, 'the Total Recipe Cost is calculated

Pitlr the following two-step procedure:

Determine the cost for the given quantity

of each recipe ingredient using the unit

costing procedures described previously.

Add all of the ingredient costs together to

obtain the total recipe cost.

The total recipe cost can then be broken down

llrc Cosl per Portion, which is the most useful

Ior food cost control. To arrive at cost per por-

, rlivide the total recipe cost by the total number of

or portions produced by that recipe.

o

Bg

d

E

The 1

served or so:

is cut into 8

divided by 8

total recipe cor

provide errofleour

ild be the amount that is

rers. In other words, if pecan

service, the recipe cost should,curate portion cost. Dividing

, servings or by'10 servingsnformation.

lixercise 3,3 shows the ingredients for Bn onlon

, I lse the unit costs calculated in Exercise 3, I tote the recipe costing form. (Note that the eol-

,f'etr "yield Vo" and "8.P. price" are not used in

eterrise.)

i.3

RECIPE COSTING FORM

The Recipe Costing Form provided in thependix is useful for organizing recipe costing infition. It provides space for listing each ingredient,quantity of each i'rgredient needed, the cost of eachand the total cost for each ingredient. portion sizecost per portion are listed at the bottom of the fr

There is no space for recipe procedures because theyirrelevant in recipe costing.

When using this costing form, rememberinformation you write in the Quantity column is mtiplied by the amount you write in the price columndetermine the Recipe Cost for each item. The coststhe ingredients are then totaled to determine the TRecipe Cost.

? Identify at least rwo orher reasons why it is iportant to use a standard recipe in a professi

frrm oate lO-l?ffro I taOtor-r

po*ionSize (o or.

TOTAL RECIPE COST $

Number of Portions

-,f-,^!il,l."r.", -.

46

Cost per Portion $

47

F' CHAFTEH 3

Labor Costs

The term direct labor refers to the work thatdirectly involved in the production of menu items.

example, the time that a cook spends cleaningfrosting a cake or shucking oysters would be directused in producing those foods. The labor requiredclean the parking lot, balance the cash register, inventhe wine cellar and so on is indirect labor.

The cost of direct labor should be

when costing menu items. If food is purchased

processed, cleaned, portioned, and ready to heatserve, labor costs will be low. The more in-houseessing needed, the more labor costs will increase.some point, the money saved by buying wholesaleof meat or making your own stocks may be outweiby the costs of labor needed to produce those items.example, if a prep cook works slowly and takes tooto clean a beef tenderloin, the chef may decide itbe less expensive to purchase the tenderloincleaned and portioned for service. The labor expensethat cook could then be eliminated.

Unlt and

'l'lrc cxpense for direct labor is added to food cost

lftivr irt a figure known as prime cosl, which is the

cnst ol'preparing a food item for sale. Prime cost is

rusecl when setting menu prices, as described in

J, Menu Pricing.

49

Your manugcr wants to make all dinner rolls in-

, irrstoacl ol' buying ready-to-serve bread. He

t:kr yorr il'this is a good way to save money. What

lFftrrtrtnriort do you need before you can answer him?

i. ,.i-,. ,

48

Review Questions for Chapter 3

Dellne the following terms:

L]NIT COST

€()ST PER PORTION

Ymm

Why is it important to calculate the portion cost of a recipe in profes-sional food service operations? Why is the cost of the recipe alone

lnadequate?

Explain how the cost of a small quantity of an ingredient can be de-

termined from the known cost of a large or bulk quantity of that in-gredicnt.

ldffiiH,

51

Yield TestsCHAPTER 4

lngredient Yields

Computing the cost of recipe ingredients is

simple matter if foods are used the way they are recei

and there is no waste or trim. This is rarely the

however. The amount of a food item As-Purc

(A.P.) and the amount of the Edible Portion (E.P.) of

same item may vary considerably, particularly

meat, fish, poultry and fresh produce. In this con

yield. refers to the usable or edible quantity remaini

after processing the as-purchased quantity of a

item. That is, yield refers to the amount of usable

after the case of iceberg is cleaned, or the amount

meat that is available after trimming.

The yield factor or yield percentage is the

of the usable quantity to the purchased quantity.

always less than IOOVo and may be calculated in dol

or quantity (weight/volume) amounts.

Because purchase specifications and fabrication

*ttttiques vary from operation to operation, there are no

pGcise, standard yield amounts. Each kitchen should

ftterrrrine its own yield factors using its own cooks and

lll uwrr cleaning and trimming standards. To be

ft€ttmle, several tests should be conducted and the

f;tults lveraged to arrive at a specific operation's yield

Iur each item.

'fhe method of calculating yield varies depending

Wlrethcr the item's trim is all waste (for example,

lnhlc peelings) or whether the trim creates usable or

le hy-products (for example, meat and poultry).

l:hapter examines both types of yield tests and

lrow this information is critical in purchasing

Raw Yield Tests WithoutBy-Products

'l'lre simplest yield test procddure is for items that

nu usable or saleable by-products. These foods

nrlst produce as well as some fish and shellfish.

tltese lilods are ready to serve as received fromrr, trimming is required and all trim is waste.

l*etttple, one pound of apples may yield only 13

ol' llesh after peeling and coring. If a recipe

otte pound of peeled, cored apples, the chef

ttarl with slightly more than one pound of A.P.

? one of your cooks completes a yield test

case of spinach and reports that spinach has a yie

ll7Vo. What's wrong with his results?

54

In uruler to determine accurate costs for such

55

CHAPTER 4 Yield Tests

items, the trim loss must be taken into account. Eseedless grapes do not have a l00Vo yield factor.

weight of stems and bad grapes should be calculated

deducted from the A.P. weight to determine the co

price per pound of servable fruit.

Three steps are used for calculating yield

all trim is waste:

STEP 1: Weigh the trim produced fromspecified A.P. quantity. This is kn

trim loss.

Itltrle that the yietd factor will always be some number

btl than 1 and the yield percentage will always be less

fim 1007o.

Practice calculating yield factors by completingise 4.1. Remember, subtracr trim loss from A.P.

; lhen divide yield weight by A.P. weight to arriveyicld percentage.

STEP 2:

STEP 3:

Subtract the trim loss from the

weight to arrive at the total yield wei

Divide the yield weight by the

weight to determine the yield factor

percentage).

Example 4.1

Two pounds of fresh garlic generates

ounces of trim loss. Therefore, the yield weight

1/2 ounces and the yield factor is86Vo:

(2 lb. x 16 oz.) = 32 oz. - 4.5 oz. = 27.5

27.5

= .859 = 86Vo

M-,66

32

67

CHAPTER 4

Exercise 4.1

CALCULATING YIELD PERCENTAGES

A.P. TrimLossItem W

14.5lb. 5.5 lb.

Broccoli 27lb. 10Ib. 10 oz.

t8-U4lb. 3lb. 12 oz.

Cucumbers 8lb. 2l oz.

6z-lb. melons

Onions 25lb.

Leeks 6-2t3 tb. 3lb.

Tomatoes 18.75 lb. 19 oz.

Yield Testg

Yieldw

8.5 lb.

22lb,4 oz.

Because each operation has its own

cleaning and trimming raw products,

should be personalized. Lists of common

such as those given in Chart 4.1, are aval

as an indication of industry nerrns.

tlharr 4,1

CTIMMCIH PRODUCE YIELD IhCTORS

to Chart 4.1 , 7U%of the broccoli you

30% is waste; 637o of all scallions

tt* ic waste- Depending on your

eleaning standarlls, and purchasing

lhorc percentages nry or may not be

759o

94Vo

48Vo

75Vo

70%

95%

7OVo

8O7o

78%o

55%

75%

82%

2E%

Grapefruil 45Vo

Grapes 9Aclo

Kirxi 8A9o

Leeks 5O%o

lrrnons 45Vo

Irttuce 75c/o

Lirnes 45cno

Melons 55Vo

Mrrshroonrs 90Vo

Nectarines 867o

Okra 827o

Onions 9OVa

Oranges ffi%o

Pears 75Vo

Pea pods 9Ucla

Peppers 82%o

Pineapple 5OVo

Plums 95%d

Potatoes 80%

Radishes 90%

Rhubarb 85To

Scallions 65Vo

Spinach 6A%

Squash 9A7o

Tomatoes 9OTo

Zucchini XJ%b

hd*,6E

(,Ircr8tion.

60

CHAPTER 4 Yield Tests

Applying Yield Factors

Now that you understand what yield factors

and how to calculate them, let's look at the two ways

which they are applied. First, yield factors are used

accurate ingredient pricing and recipe costing. Sec

yield factors are necessary for accurate purchasing.

> To Determine lngredient Price

When a food product is cleaned or triportion of what you paid for is discarded. The

the remainder of that food should be adjusted upw

account for its increased value. This revised pri

then the accurate one to use in recipe costing. In

words, the price should be recalculated to account

waste. The A.P. (as-purchased) unit cost must

converted to an E.P. (edible portion) unit cost.

done by dividing A.P. cost by the yield percentage.

$xantple 4.2

Carrots cost $6.50 per 25-lb. bag and have a

fielrl l'actor of 78Vo; in other words, 22Vo of that 25-lb.

beg ir waste. So, the carrots have an E.P. unit cost oftty pcr pound.

.26lpound

= .33lpound

n costing a recipe, 33p per pound is the accurate

liont cost.

lixercise 4.2 allows ybu to practice calculating

trvisod E.P. cost of food items that have no usable

or hy-products. Use the yield factors listed in Chart

to complete this exercise.

.78

,I

ru,

I li.P. cost is always greater than A.P. cost.

00 61

CHAPTER 4

Exercise 4.2

DBTBRMINING EDIBLE.PORTION COSTS

Yield Tests

A.P.Cost

YieldVc

E.P.Cost

Banana slices

Yams, diced

.70Ib. 74Vo

Avocado slices t.29tb.

_37Lb.

.89Ib.

> To Determine Purchase Amount

Most recipes list ingredients in E.P.

Therefore, the chef must consider waste or trim

when ordering these items. If the amounts listed in

recipe are ordered and then require trimming,number of portions (or recipe yield) will be less than

desired amount.

Srunple 4.3

A recipe requires 20 lb. of shredded cabbage.

Tlre yicld factor for cabbage is79Vo. Therefore, 20 lb. is

fgtf,, rrl'the A.P. quantity. Divide the amount needed by

&e yield factor to determine the minimum A.P. quantity.

20Ib.

= 25.3lb.

.79

*lll lrrke 25-ll3lb. of cabbage to provide the 20 lb. ofcabbage. (This figure should be increased to

Bven rmount for purchasing because yield factors are,

$rl, only an estimate.) Note that the A.P. figure must

x hc greater than the E.P. figure in this formula.

leces

63

FFt'I

ta EP Quantity is always less than A.P. Quantity

Yield TestsCHAPTER 4

Exercise 4.3 provides practice in calculating

chasing quantities for items having unusable t

Remember that yield factors are listed in Chart 4.1.

Exercise 4,3

DETERMINING AS.PURCHASED QUANTITIES

A.P.

Raw Yield Tests Wath By-Products

With meats, poultry, and some fish, only a small

lBlount of trim will be discarded as waste. Much of the.

Elnr can be used and therefore has a value to the

gp+nrtion. Calculating yields on food items with usable

ff rtrlable trim is a bit more complex than calculating

|leltls fbr food items whose trim is all waste.

If the. food service operation purchases only

ffirtttt, portion-controlled meats and seafood and uses

Senr .iust as they are received, A.P. and E.P. costs are

r.lnle. But if the operation buys wholesale cuts ofor whole fish and poultry and cuts them in-house,

ehef should do a yield cost analysis to determine the

I costs.

The labor costs associated with trimming or

lcnting food items can become a major expense for a

tcrvice operation. Although labor costs should be

when making purchasing and production

for now we are only concerned with actual

The impact of labor costs was discussed in

4.4

Suppose your restaurant serves a boneless,

lers grilled chicken breast entr6e. The restaurant

wholc tiyers for $1.07 per pound. You must clean

ehickons by removing the breast meat and skin, and

ItemRecipeAmount

YieldVo A

3 lb.

Avocado slices r-U2tb.

Banana slices 5.75Ib.

2tb.

Yams, diced 22-2t3lb.

leces

74 7o

807o

64

lng the wings, legs, and thighs. You begin with a

65

F'r'f

CHAPTER 4 Yield Tests

After calculating the total value of allproducts, subtract that amount from the original cost

the chicken as-purchased. This figure reflects the

cost of the 10.5 pounds of boneless, skinless

meat.

$37.45 - 14.95=$22.50

To find the cost per pound for the breast meat, dividenet cost by the tested item's yield weight. This isfigure you will use for costing chicken breast recipes.

$22.50 + 10.5 = $2.14 per pound

Percentage of increase is determined by dithe net cost per pound by the A.P. price per pound.

that this figure is almost always greater than l)OVo.

$2.14+ $1.07=2007o

The percentage of increase figure is used the nextthe operation purchases chicken but finds that the

has changed. Instead of completing another yieldthe new cost per pound for chicken breast meat

determined by multiplying that new price bypercentage of increase. So, if the cost of whole chi

rises to $1.85 per pound, breast meat will cost $3.70pound:

$1.85x200Vo = $3.70

Cooked Yield Tests

So far, this chapter has addressed yields ofrkcd food items. Most foods, however, suffer

ional loss in the cooking process. Loss also occurs

n trimming fat or bones, and when slicing and

krrring foods after cooking. To accurately determine

lorr cost and purchasing quantities, these losses must

t'orrsidered, especially if the food portion is

rincd by weight after cooking (for example, sliced

hcr:l' for sandwiches). Once again, several tests

I hc conducted to obtain reliable yield factors forolrcration. As-Served (A.S.) refers to the actual

lt ol'one portion as it is served to the customer. If a

is scrved raw, such as fruit, the as-served weight

he thc same as the edible portion weight. If the food

rkctl. however, these weights will be different.

('lritrt 4.3 is a Cooked Yield Testing Form used

detelrnirring cooked cost per pound and percent of

What happens to the cost of breast meat if the

Gusl ol'whole chickens falls to 98p per pound?

68

knp.e. Rcmcmber that cooked yield tests are only

69

F'CHAPTER 4 Yield Tests

n"- Trrr\ Br<o-r} o.,.

Netweight l3 lb. iletcostperpound + S"rc iletGosr

Gooked Cast per Pound +

Shrinkage 3 rb. PercentofShrinkage 17

Total Percent of lncrease

necessary where A.S- portions are based on weightscooking. ff, for example, saut6ed shrimp isorder based on aGoz. uncooked portion, a cooked Itest is not necessary- If, however, large quantitiesshrimp are cooked first, then portioned forcooked yield test must be completed to determineactual cost per portion.

Chart 4.3

COOKED YIELD TEST FOR]Ii

Chart 4.3 is filled in with the results of a cooked

|leld test on a roasted boneless turkey breast. Assume

fhat a raw yield test has already been conducted on the

Erkey breast, providing the net cost and net weight

tgurcs. The weight as served is calculated by keeping

Eae k of the number of portions actually served from that

Brkcy and multiplying that number by the portion size.

*hite it is tempting to simply weigh the turkey after

ing and trimming, this fails to account for loss

igused by employee snacking, wasted scraps, crumbs

hft on the cutting board or slicer, or spilled juices. It is

hore accurate to record the weight that is actually

The remaining lines on the form are completed

your calculations, just like on the raw yield test

, The cooked cost per pound is the net cost divided

the A.S. weight ($Sq.+O + 15 lb. = $3.96).

Shrinkage refers to the loss from pre-cooked

lght to as-served weight (18 lb. - 15 lb. = 3 lb.). The

of shrinkage figure is the ratio of shrinkage to

weight (3 lb. + 18 lb. = lTVo). It is used to assist

chef in determining future purchasing needs. For

le, if the chef knows that roast beef has a l2Vo

kage factor, she knows that the pre-cooked weight

be lTVo more than the weight needed after cooking.

Total percentage of increase shows the increase

co$t per pound from purchasing to service. It is

luted as a follow-up to a raw yield test by dividing

g6

70

cooked cost per pound by the A.P. cost per pound.

71

? .whole raw turkey costs $1.89 per pound,

what is the percent of cost increase for cooked, sliced

turkey breast? (See Chart 4.j.)

Ii A.P. = As-Purchased

E.P. = Edible-Portion

A.S. = As-Served

CHAPTER 4 Yield Teste

Using Yield Tests for Purchasing

As discussed above, yield factors are usefuldetermining how much of a raw item to buy whenknow how much of the cooked item you need.

calculations for items with by-products and foritems are the same as shown in the produce exaabove.

STEP 1: Calculate the yield percentage.

E.P. - A.P. = Yield Percentage

STEP 2: Divide the amount needed (E.P.)

the yield percentage to determineamount to purchase.

E.P. Quantity - Yield 7o = A.P. Quantity

l{r'umple 4.5

Refer to the chicken breast example in Chart 4.2

Enrl assume that you need 43 lb. of raw chicken breast

ntrirt for a dinner party. The raw yield factor is 30Vo

( 10,5 + 35 = .30). So, you must purchase at least 143-

l/l lh. of whole chickens to have the 43 lb. of breast

ntrirt needed(43 + .30= 143.33).

Htrrcise 4.4

Return to the sliced turkey example above and

Itriurne that you need to make 75 turkey sandwiches,

€aclr containing 4 oz. of cooked, sliced turkey. If you

*nrrw that a24-lb. turkey produces 18 lb. of raw turkey

brerrst, how many pounds of whole, raw turkeys will you

flectl to buy to have enough breast meat for the

!Fttrlwiches?

72 7g

FCHAPTER 4

Making Purchasing Decisions

Deciding to purchase food items that are

to-serve, or deciding to do the preparation in-hinvolves more than a just a cost analysis. Other

. may be significant in determining the best approach

your operation. Consider the following questions:

Employee Skills Do your employees

the skills necessary to butcher meats properly?

fabricate fish? To clean and prepare

consistently? How much will hiring skilled labor

Menu Do you have a use for the bones,

and trimmings that result from fabricating large cuts

meat into individual portions? Can your menu

depending on the seasonal availability of fresh por shellfish?

Storagefreezer space so

highly perishable

and seafood?

Do you have ample refrigeratorthat you can be flexible initems, such as produce, meat,

Customers Do yourproduce and custom cuts ofdesserts made "from scratch"?

for additional labor costs?

customers expect

rneat? Do they

Are they willing to

Yield Tests

Review Questions for ChaPter 4

Ikfine the following terms:

AS SERVED

YIIJLD FACTOR

fl,'MING LOSS

What is the purpose of the Percentage of lncrease figure on the raw

yicld test form? How is this figure used by the chef?

l.ist several factors that might cause one restaurant's yield factor for

lcttuce to be higher than another restaurant's. Explain why

rtandardized yield factor lists are unreliable-

75

Menu Priclng

After determining the cost of food items, youmore intelligently and accurately calculate menu priA few of the many methods for setting menu pricesexplained below. Some techniques are highly strucand closely related to food costs; others are unstand unrelated to actual food costs. As a practicalno one method is right for every operation andcombination of methods may provide the best pristrategy.

Cost-Based Menu pricing

This section examines four cost_basedmethods: food cost percentage, factor pricing,cost pricing, and perceived value pricing. Each ofmethods uses the cost of the food item as the spoint.

Food Cost Percentage For thisyou must first determine the food costdesired for the particular operation. Calculateitem's raw food cost, then divide by the desiredcost percentage to determine the selling price.

lixample 7.1

If the cost for one sandwich is $1.70 and the

desired food cost percentage is ZiVo, the selling price

nrust be at least $7.39

$1.70 + $.23 =7.391

Irr this situation, 23Vo of the sales price for each

nrndwich will go to cover the cost of ingredients. The

higher the food cost percentage, the lower the portion oflhc sales price that is available for fixed expenses,

ovcrhead or profit. Determining the appropriate food

cost percentage for your facility is critical to the

tuccessful use of this method.

Exercise 7.1

Your manager has determined that food costs

rhrruld be no more than 28Vo of sales. What should you

Ehurge for a bowl of onion soup if the recipe cost is

f t , tZ per portion ?

Factor Pricing A variation on food cost

Pcrcentage pricing is factor pricing, in which a multiplier

h used to calculate menu prices. First, take the desired

food cost percentage and divide it into 100 to arrive at a

factor. The cost of each menu item is then

multiplied by this cost factor to arrive at the menu price.

Uaing the figures in Example 7.1, the factor is 4.35 (100

109

+ 23 = 4.35) and the

$7.39 ($1.70 x 4.35 =

menu price for a $1.70$7.3e).

Exercise 7.2

What factor is used to28Vo food cost?

set menu prices with

Both food cost percentage and factor pricingfast and easy to use. These methods areunreliable, however, because they assume thatcosts associated with preparing food stay the sameeach menu item. These systems wrongly assume thatcosts for labor, energy, and overhead are the samerack of lamb entr6e and a seafood salad. Thesemay be fine-tuned somewhat by adjusting thefood cost percentage according to the type of foodmenu category. For example, appetizers may ,

assigned a lower food cost percentage than dessertg,side dishes.

Prime Cost Pricing The food service

lndustry uses a figure known as prime cost to refer to the

btsl of raw food cost plus direct labor. Direct labor is

lnbor actually required for an item's preparation. If,

example, food cost is $2.10 and direct labor is $1.50,

prime cost is $3.60. As with the food cost

rcentage example above, the prime cost percentage

he divided into the prime cost amount to determipe

pnce.

Why might one category of foods, such as

daiscrts, be priced with a higher food cost percentage

lltnrr other menu items?

DIRECT LABOR = The labor required for

Betu[l production of menu items.

110 1ll

*i

Menu Pricing

Example 7.2

The raw food cost for a rack of lamb is $7.50it takes a cook a total of 9 minutes to clean and trimfor service. If that cook is paid $8.50 per hour, the dilabor cost is $1.27 ($8.50 per hour = $.14 per mi($.'1a x gminutes = $1.27).

The prime cost of the rack of lamb is $8.($7.50 + $1.27). A selling price is then determined

dividing prime cost by the desired primepercentage. If the desired prime cost percentage is

the rack of lamb should be priced at $18.27 ($8.22

.48 = $18.27).

Perceived Value Pricing This is a

backwards way of setting prices based on

perceptions of appropriate prices. You firstwhat the "market price" is for the same or similarThen calculate what you can serve for that price.

This technique requires a thorough knowledgcthe market and complete, accurate historical infl

information and experience, you can determine how

much to spend on raw product for each menu item and

still make the desired profit. This method is most useful

lbr standard food items or in markets that are highlycompetitive.

Ilxample 7.3

Assume that the market price for a complete

c:hicken dinner is $9.95. Assume further that the desired

profit is '|Vo, overhead expenses are 27Vo of sales and

lrrhor is 23Vo of sales. You can then spend 43Vo of $9.95($4.2S; on the food cost for that chicken dinner.

7+27+23=5l%o

100 - 57 = 43Vo x $9.95 = $4.28

Excrcise 7.3

Your competitor serves a complete shrimp dinner

ftrr $12.99. You would like to meet this offer, butyou're not sure you can afford to. You know that your

€vcrhead accounts for 38Vo of sales, labor is 34Vo oflBles, and your desired profit margin is l2Vo. How much

een you spend on raw food cost for a $12.99 shrimp

dlnne r'l

112

on labor and overhead costs. With the

113

F

{

tt'!t i-

I!iI

3

I

t

j

i

tI

Ii

I

Profit-Based Menu PricingUnlike cost-based pricing methods, profit-

methods tse desired profit as the starting pointcalculations. The two methods discussed here are

profit pricing and budget-based pricing.

Gross Profit Pricing Gross profit pricingbased on the specific amount of profit that is hiproduced by each customer. So, there must be ahistory for the facility before this methoduseful. The average gross profit per customer isdetermined by dividing total gross profit by thenumber of customers during the given period. If,example, total gross profit for the first year ofwas $120,000 and a total of 40,000 covers wereduring the year, the average gross profit perwas $3.00. So, $3.00 is added to the food cost foritem to determine the menu price.

120,000

= 3.00 + food cost = menu40,000

This pricing method is probably most useful for prhor buffet operations where food cost is also averaged,

'l'he average gross profit per customer is $2.80 ($80,000

+ 28,500 = $2.80). If the average per person food cost

Ior a salad bar is $2.10, the menu price for that salad

shouldbe$4.90 ($2.10 + $2.80 = $4.90).

lixercise 7.4

The average per person food cost for your

lrunday buffet is $6.45. During the past year a total of

5200 people purchased this buffet and your gross profit

wts $31,500. How much should you charge per person

il'you wish to maintain that profit margin?

Budget-Based Pricing Budget-based pricing

huilds atarget profit percentage into the selling price of

ench menu item. As with gross profit pricing, there must

he a history of expenses to use this method. The desired

prol'it percentage and the historical percentage for

ovcrhead (total labor, fixed expenses, and so on) are

ntrlrtracted from l00%o. The percentage remaining is the

nnlount available for food costs. A factor is determined

by dividing this food cost percentage into 100. The

arlunl food cost for each menu item is then multiplied by

the lirctor to obtain the selling price.

il

Example 7.4

During the past 12

customers were served and

months a total of

114

gross profit was

115

t,

Menu Pricing

Example 7.5

If the desired profit is lTYo of sales andexpenses historically total 60Yo of sales, then thecost percentage must be no more than2}Yo.

. 100-(60+12):28

Dividing 28 into 100 provides a pricing factor of 3.57 ,

the raw food cost for a Chicken Caesar Salad is $2.then the selling price is $9.25

$2.59x3.57:$9.25

Exercise 7.5

Your bakery a shopping mall

for special or loss-leader items such as aT9Qjumbo soda

or a $1.99 breakfast special.

While the competition's prices are an important

consideration, you should not simply copy them. Your

competition's costs are not your costs no matter how

similar the final food product appears. If you must

charge higher prices than your competition, seek out

some way to dffirentiate your product or your service.

Virtually all food service operations are seeking

to charge the highest price possible without a loss ofsales. The customer's perception of value is therefore

critical. The menu can be used as a tool for educating

customers. Descriptive language or an explanation ofunique or special dishes can be included. Customers

who understand the value of service, atmosphere, out-of-

scason foods, and specialty products will tolerate higher

prices for those items.

Psychological lmpact of Pricing

Regardless of how you arrive at a menu price,

you may wish to round the figure up or down forpsychological impact. It is human nature to perceive

aorrre prices as higher or lower than they actually are.

lror example, using a 9 or 5 as the last digit in a price

ereiltcs the impression of a discount. Prices ending in aI or 5 appeal to price-conscious customers. On the other

hnntl, priccs ending in a 00 or 0 are perceived as more

extremely high rents. Consequently, your totalaverages 75% of sales. Your foodcranberry muffins is $1.04. If youprofit, how much should you charge for onemuffins?

Non-Cost-Based Pricing

Non-cost-based pricing techniques rely onmonetary factors in setting menu prices.prices in your area for the same or similar items

cost for one

want to make

-116

affect your ability to set prices. fhii is particularly

117

Menu Prlclng

expensive and of higher quality and so are often used

fine-dining menus.

The number of digits in a price is also im$9.95 seems much less expensive than $10Likewise, theftrst numeral in a price affects perceptio

When changing menu prices, an increase from $5.95 r

$6.45 seems greater than an increase from $6.25

$6.75, although both are 50p increases.

Patrons do not like to see a large spread inprices. Erratic pricing may cause confusion orcustomers think something is wrong with one or morethe items. For example, a lobster dinner for $18.50be a reasonable price, but it may be inappropriate onmenu where all other items are less than $6.00.general, the highest price should not be moredouble the lowest price within the same food cate

ff the least expensive appetizer is $4.00, then theexpensive appetizer should not be more than $8.00.

Exercise 7.6

Your accountant accurately calculated allmenu prices based on information you provided.prices show figures such as $6.12, $9.00, $8.57$1.19. Use your knowledge of pricing psychology

adjust these prices to more appropriate figuresexplain your reasoning.

Review Questions for Chapter 7

1. In order to maintain an averagb food cost of 35Vo, what multipliershould you use to calculate menu prices?

2. Calculate the menu price for a chicken salad with a raw food cost of$1.97, where the desired food cost is 23Vo. How might this priceappear on an upscale restaurant's menu?

3. During June your restaurant will offer a complete shrimp dinner fora special price of $8.99. Explain how you will determine the

appropriate cost for the raw ingredients for this meal. What otherinformation do you need?

118 119

4. The five appetizers on your lunch menu are priced from $6.50$7.95 each. Your manager wants to add a new appetizer priced$2.95. Explain why you disagree with this idea.

5. Why might it be important to know the labor costassociated with preparing a given food item? Explain howprime cost percentage differs from the food cost percentage.

120