Calculating Food CostsCalculating Food Costs

Portion ControlPortion Control

Customers expect food to be uniform and Customers expect food to be uniform and consistent every timeconsistent every time

Serving consistent portions is essential to Serving consistent portions is essential to the success of a restaurantthe success of a restaurant

How to Control PortionsHow to Control Portions

Purchase items according to standard Purchase items according to standard specificationsspecifications

Follow standardized recipesFollow standardized recipes Use portioning toolsUse portioning tools

Calculating Unit CostCalculating Unit Cost

In order to determine the cost of a recipe, In order to determine the cost of a recipe, you must first determine how much the you must first determine how much the ingredients costingredients cost

Most foodservice facilities purchase food Most foodservice facilities purchase food in in bulk…e.g. bulk…e.g. 50 lb bag of sugar50 lb bag of sugar

Calculating Unit CostCalculating Unit Cost The The Unit Cost Unit Cost is the cost of each is the cost of each

individual itemindividual item As purchased price As purchased price is the cost you paid is the cost you paid

for the itemfor the item• Example: a 50-lb bag of sugar costs $22.00. A Example: a 50-lb bag of sugar costs $22.00. A

marinated mushroom recipe calls for several marinated mushroom recipe calls for several ounces of sugar. Therefore, the unit for the recipe ounces of sugar. Therefore, the unit for the recipe is ounces. You must convert unit (lb) to ounces is ounces. You must convert unit (lb) to ounces (oz).(oz).

50 lb. x 16 oz. = 800 oz.50 lb. x 16 oz. = 800 oz.

Calculating Unit CostCalculating Unit Cost

To find out how much each ounce costs, To find out how much each ounce costs, divide $22.00 by 800 oz.divide $22.00 by 800 oz.$22.00 / 800 oz. = $0.03 per ounce (unit cost)$22.00 / 800 oz. = $0.03 per ounce (unit cost)

Food Waste and Product YieldsFood Waste and Product Yields Some foods, such as Some foods, such as

deli meats, are used deli meats, are used completely as they completely as they are purchasedare purchased= NO FOOD WASTE= NO FOOD WASTE

Other foods that Other foods that require trimming or require trimming or deboning result in deboning result in food wastefood waste Chicken, fruit, etc.Chicken, fruit, etc.

The The product yieldproduct yield is is the usable portion of the usable portion of food productfood product

Many times foods Many times foods lose volume or weight lose volume or weight as they are preparedas they are prepared Ex. A roast can shrink Ex. A roast can shrink

up to 1/3 of its original up to 1/3 of its original size when it is cookedsize when it is cooked

As-Purchased and Edible As-Purchased and Edible PortionPortion

The untrimmed The untrimmed quantity; in the same quantity; in the same form in which the form in which the product was product was purchased is called purchased is called the… the…

as-served portionas-served portion Abbr: Abbr: (AP)(AP) Expressed by weightExpressed by weight

The amount of The amount of consumable food consumable food product that remains product that remains after preparation is after preparation is called the called the edible edible portionportion Abbr: Abbr: (EP)(EP) Expressed in a %Expressed in a %

Edible Portion Yield PercentageEdible Portion Yield PercentageYield %Yield % = EP / amount of food purchased = EP / amount of food purchased

Two red bell peppers Two red bell peppers are used to prepare a are used to prepare a mushroom salad. mushroom salad. The two peppers The two peppers together weigh 11 oz. together weigh 11 oz. After trimming, you After trimming, you have 3 oz. of trim have 3 oz. of trim loss. loss.

AP Weight = 11 oz.AP Weight = 11 oz.Trim Loss = 3 oz.Trim Loss = 3 oz.Yield Wt = 8 oz.Yield Wt = 8 oz.

Yield % = 8 oz. / 11 oz.Yield % = 8 oz. / 11 oz.

Yield % = .73 or 73%Yield % = .73 or 73%

Costing RecipesCosting Recipes

Determining the cost of a standardized Determining the cost of a standardized recipe is an important part of cost controlrecipe is an important part of cost control

Once a recipe cost is calculated, the Once a recipe cost is calculated, the operation can determine:operation can determine: How much each portion costsHow much each portion costs Menu pricesMenu prices

The “Q” FactorThe “Q” Factor Questionable Ingredient Questionable Ingredient

FactorFactor Covers the cost of Covers the cost of

ingredients that are ingredients that are difficult to measure.difficult to measure.

Use the “Q” Factor:Use the “Q” Factor: For small amounts of For small amounts of

ingredients (1/4 tsp)ingredients (1/4 tsp) Measurements such as “to Measurements such as “to

taste”taste” Covers costs resulting in Covers costs resulting in

seasonal changes in food seasonal changes in food pricesprices

Covers condimentsCovers condiments

Cost Per PortionCost Per Portion The amount you would serve to an The amount you would serve to an

individual customerindividual customer

Recipe Cost / # of Portions = Cost Per PortionRecipe Cost / # of Portions = Cost Per Portion

Ingredients Cost $7.20Ingredients Cost $7.20Serves 10 portionsServes 10 portions

Cost per Portion = $0.72Cost per Portion = $0.72

Calculating Food Cost Calculating Food Cost WorksheetWorksheet

1.1. A 25 lb. bag of sugar costs $28.95. What is A 25 lb. bag of sugar costs $28.95. What is the unit cost per ounce of sugar?the unit cost per ounce of sugar?

2.2. A 10 gallon bucket of butter cream icing costs A 10 gallon bucket of butter cream icing costs $15.25. What is the unit cost per cup of icing?$15.25. What is the unit cost per cup of icing?

3.3. The weight of a watermelon is 7 ½ lb. The trim The weight of a watermelon is 7 ½ lb. The trim loss = 5 lb. What is the EP yield % for the loss = 5 lb. What is the EP yield % for the watermelon?watermelon?

4.4. Total cost of ingredients for a recipe that Total cost of ingredients for a recipe that serves 8 portions is $12.96. With a Q factor of serves 8 portions is $12.96. With a Q factor of 3%, what is the cost per serving?3%, what is the cost per serving?

AnswersAnswers

1.1. 25 lb x 16 oz. = 400 oz (400 oz. = 25 lb.)25 lb x 16 oz. = 400 oz (400 oz. = 25 lb.)$28.95 / 400 = .07 => $28.95 / 400 = .07 => $0.07 per ounce of sugar$0.07 per ounce of sugar

2.2. 10 gal x 16 c = 160 cups (160 c = 10 gal)10 gal x 16 c = 160 cups (160 c = 10 gal)$15.25 / 160 = .095 => $15.25 / 160 = .095 => $0.10 per cup of icing$0.10 per cup of icing

AnswersAnswers

3.3. 7.5 lb. – 5 lb. = 2.5 lb.7.5 lb. – 5 lb. = 2.5 lb.2.5 lb. / 7.5 lb. = .333 => 33% EP2.5 lb. / 7.5 lb. = .333 => 33% EP

4.4. $12.96 x .03 = .39 => $0.39$12.96 x .03 = .39 => $0.39$0.39 + $12.96 = $13.35$0.39 + $12.96 = $13.35$13.35 / 8 portions = $1.67 per portion$13.35 / 8 portions = $1.67 per portion