Integrated approach to optimize operation and maintenance costs
Costs of a Food service Operation
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Transcript of Costs of a Food service Operation
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Costs of a Food service
Operation
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Expenses
Labor Total cost of labor employed in the
establishment.
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Expenses
Overhead Controllable Expenses
Food, Labor, Supplies Non Controllable Expenses
Rent, Utilities, Advertising, Insurance
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Expenses
Food Cost To control Food cost, standards must be
implemented Quality Quantity Portion size Yield
The most important standards are the recipes
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Standardizing Recipes
Recipe NameID numberPortion SizeYieldIngredientsWaste %Edible ProductAs Purchased
Conversion MeasureIngredient costSubtotal costQ FactorTotal CostAdditional CostFood cost %
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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
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Example A Recipe for Chicken Pot Pie makes 10
cups. A portion in considered 1 cup. How many portions are there? 10 / 1 = 10
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Example SOUP
Recipe Yield 2 gallons Serving size 8 oz
How many Portions are there?
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Yeild % EP/AP = Yield % Edible Portion / As Purchased = Yield %
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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 %?
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Yield % 45/50 = 90%
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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
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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?
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How much should I buy? Ep/ap = yield% Ap = ep/yield %
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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
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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?
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Food Cost
Expressed as a percentage Cost of food / sales price
Cost of food = $2.00Sales Price = $6.00Food cost = 33%
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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???
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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?
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Determining Sales Price
Desired food cost % Direct competition Labor intensity Demand (popularity)
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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
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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?
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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