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Commercial Food and Nutrition Systems- Review I. Menu Planning A. Types 1. No choice- nonselective either cycle or single use 2. Limited choice- provides choices for some items 3. Choice- selective-better please clientele 1. Static, fixed, set-same menu items every day 2. Single use-one day use only 3. cycle- repetition of menus in designated sequence (ex. Planned for 3-4 weeks then repeated 4. two tier- upscale menu items prepared for those willing to pay extra for them 5. restaurant a. table d’hote-complete meal at set price b. a la carte-separate items at separate prices c. du jour-menu of the day, uses leftovers and food bargains B. Menu development clientele- considers nutritional needs, age, racial, religious, ethnic backgrounds physical facility personnel-time and ability factors budget aesthetics, external factors- color, shape, consistency, flavor, climate, season C. Customer Satisfaction satisfaction surveys frequence of acceptance plate waste self reported- consumption popularity index To determine: # of servings of all items in that category that day

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Page 1: Food and Nutrition Systems - UH food revie…  · Web viewCommercial Food and Nutrition Systems- Review I. Menu Planning. A ... Low cholesterol

Commercial Food and Nutrition Systems- Review

I. Menu PlanningA. Types

1. No choice- nonselective either cycle or single use2. Limited choice- provides choices for some items3. Choice- selective-better please clientele

1. Static, fixed, set-same menu items every day2. Single use-one day use only3. cycle- repetition of menus in designated sequence (ex. Planned for 3-4

weeks then repeated4. two tier- upscale menu items prepared for those willing to pay extra for

them5. restaurant

a. table d’hote-complete meal at set priceb. a la carte-separate items at separate pricesc. du jour-menu of the day, uses leftovers and food bargains

B. Menu development clientele- considers nutritional needs, age, racial, religious, ethnic

backgrounds physical facility personnel-time and ability factors budget aesthetics, external factors- color, shape, consistency, flavor, climate, season

C. Customer Satisfaction satisfaction surveys frequence of acceptance plate waste self reported- consumption popularity index

To determine: # of servings of all items in that category that dayTotal # of servings of all items in that category that day

Example: M T W TH F

Broccoli 60 55 78 62 82Green Beans 28 25 35 45 33Carrots 80 75 92 90 89

A. What is the popularity index for green beans for Wednesday?# of servings 35 = 17%Total servings vegetables that day 205

B. If you expect to serve 300 customers next Friday, how many servings of carrots can you expect to serve?

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1. Pl of Carrots on Friday 89 = 43%204

43% of 300 expected servings of vegetables = 129 carrots Average check-divide sales by # of customers Benchmarking- compare satisfaction levels to those of other facilities

D. Marketing the menu Sales tool Used for consumer education Menu board where menus are planned daily

II. Purchasing, Production, Distribution Service

A. Federal Regulatory Bodies1. USDA’s Food Safety and Inspection Service (FSIS)

a. Meat and Poultry Division 1.) Wholesome Meat and Poultry Act- inspects all meat and poultry at

time of slaughter and of processed products during production used in Interstate, Intrastate, and foreign commerce

2.) Egg products Inspections Act- inspects plants, requires pasteurization of liquid eggs to be frozen or dried

2. U. S. Department of Commercea. National Marine Fisheries Services (NMFS)-inspects and certifies

fishing vessels, seafood processing plants, retail facilities for federal sanitation standards

3. DHHS- Department of Health and Human Servicesa. FDA (Food and Drug Administration) Center for Food Safety and

Applied Nutrition (CFSAN)1.) Food, Drug, Cosmetic Act (law) covers all interstate (domestic and

imported) food EXCEPT meat, fish, poultry, eggs. Monitors interstate shipping of SHELLFISH

a. prohibits adulteration-lowering quality by mixing or substituting substances

b. prohibits misbranding-use of deceitful or unfair labelingc. additives

1. GRAS-generally recognized as safe; accepted as safe due to long term use but has not been tested

2. Food Additive Amendment-producer of an additive must prove its safety

Examples of Additives:a. monoglycerides, diglycerides, lecithin, disodium

phosphate= emulsifiersb. glycerol monostearate = humectant

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c. carrageenan, pectin, cellulose, gelatin, vegetable proteins=stabilizers

d. sodium stearate= anti-caking mixe. nitrites=fixes color, inhibits sporest clostridium botulinumf. proprionate = preservatives; mold inhibitorg. ascorbic acid= enhances appearance

4. Delaney Clause- anything causing cancer in animals or humans must be removed from market

a. saccharine, nitrites, nitrates were banned; now permitted

5. Unintentional Additives-incidental contamination (pesticide residue)d. formulates standards

1. standard of identity-defines what a product must be to be called by a certain name (mayonnaise)

2. standard of quality- specifies minimum quality below which foods must not fall (fruit)3. Standard of fill- protects against deception through use of containers

that appear to hold more than they do (canned goods)e. imitation vs. substitute

1. imitation-often nutritionally inferior, may cost less, taste the same 2. substitute- nutritionally equal or superior in some ways and inferior in

others

2. ) Fair Packaging and Labeling Act-prevent deceitful labelinga. label must identify: form, weight, name and address of manufacturer, ingredients in decreasing order of predominance, size of serving if number of servings are listedb. label regulations

Low cholesterol <20 mgs of cholesterol/servingLow calories No more than 40 calories/servingLow Fat 3 grams or less per servingSodiumVery Low No more than 35 mgs/servingLow No more than 140 mgs/servingLow Saturated Fat 1 gram or less per serving

1. %DV-% of the daily value for each nutrient a serving of the food provides; based on a 2000 calorie intake2. DV includes DRV and RDI

b. Public Health Service-PHS1. Concerned with infectious and contagious diseases transmitted through shellfish, milk, vending machines and restaurants2. Contaminated shellfish transmit hepatitis

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3. Milk Ordinance Code- requires pasteurization of milk

c. Environmental Protection Agency- EPA- establish and monitor water quality standards; determines safety and tolerance levels of pesticides

B. State and local protection

1. provides for grading, sizing, labeling of eggs, inspection of dairy and seafood products

C. Purchasing policies and procedures1. methods

a. informal, open market1. buyer requests quotes on specific items for specific amounts and

qualities from one or more sources of supply2. contact made by phone or with salesman3. place order after considering price, quality, delivery

b. formal, competitive bid buying1. submit written specifications and quantity needs to vendors who then

submit price2. bids are open together, place order with lowest bid

c. future contracts1. purchase goods at a specific price to be shipped later

d. prime vending-use single vendor for majority of purchasese. centralized purchasing

1. personnel in one office does all purchasing for all units in an organization

2. cost-effective and time-saving

f. group or co-op purchasing1. involves separate union of separate unions2. economic advantage of large volume purchasing

2. Proceduresa. Purchase Order, requisition

1. written record of items ordered, quantities2. Standing Orders-eliminate the need to call in daily or weekly orders

b. Written Specifications1. accurate word picture or definition of a product2. precise statement of quality; brief, complete, simple3. include name, form, quantity, quality, size, grade, brand, style, sieve

size

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3. Determining Needsa. based on a number to be served, size proportion, amount of waste

1. portion size x # servings; convert to pounds (EP)2. Amount to Purchase = EP

% yield

Example: How much ground beef should be purchased to produce twenty, four ounce servings if it has a 50% yield?

1. 4 oz. x 20 servings = 80 ounces (5 pounds EP)5 pounds =10 pounds.50

b. when determining how many servings can be obtained from an uncooked item, consider the % lost in preparation

1. subtract the amount that will be lost and convert to ounces2. divide by the portion size

Example: How many servings can you get from 9 pounds raw meat with a 30% shrinkage if the serving size is 5 ounces?

1. (30% shrinkage)(raw 9 pounds) = 2.7 pounds lost in cooking9-2.7= 6.3 pounds remaining. Convert to ounces= 100.82. 100.8/5 ounces= 20.16 portions

c. economic order quality

III. Production1. Receiving- are should be close to delivery docks with easy access to storage2. Invoice- delivery slip that accompanies order (list items, unit price, total cost)3. Straight Invoice Method

a. check invoice to see if items ordered were deliveredb. inspect items to see if they conform to specifications

1. check for damage2. date canned goods, weigh meats and date

c. list all items on daily receiving reportd. sign invoice to accepte. store items promptly

4. Blind Check receiving Methoda. give clerk blind invoice or purchase order listing incoming merchandise but omitting quantities, weights, pricesb. receiving clerk inserts these numbers into the order on the basis of a check of the deliveryc. forces clerk to make serious check of deliveryd. takes longer and costs more

5. Partial blind receiving method

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a. combination of invoice and blind checkb. gives clerk itemized list with ONLY quantities missingc. clerk lists quantities receivedd. slower but more accurate than invoice receivinge. faster but less accurate than blind receiving

6. documentation and recordsa. daily receiving report-lists items received, date, number units, unit price, supplier, PO numberb. substitution invoice- use when order arrives without an invoicec. request for credit-lists discrepancies such as shortages

B. Storage1. amount required depends on frequency of deliveries, market form or food purchased, extent of menu and variety offered2. dry storage-dry, cool, dark, well-ventilated, clean

a. separate room for cleaning suppliesb. temperature 50-70Fc. ventilation- circulation of air removes moisture and odorsd. cartons and bags on shelves at least 6” above floor, and away from

wallse. humidity- measured by hygrometer 50-60%

3. Refrigerated storagea. 40’ F or lower-all potentially hazardous foods

fresh fruits and vegetables 40-45meat dairy and eggs 32-40

b. frozen foods 0-10’F

c. Storage times for refrigerated foodsFresh Eggs in Shell 3-5 weeks; raw yolks, whites 2-4 daysFresh poultry, ground meat, fresh fish, shellfish 1-2 daysSteaks, chops, roasts 3-5 days

C. Inventory Management1. Types.

Perpetual-running record (updated each time item placed/removed) Physical-actual count (counted as asset on balance sheet) Fixed Order Quantity Inventory System-determines the order point

(average daily use)(lead time) + safety stock*lead time is # of days from placing order to delivery

Example: What is the order point for peaches if, on average, two cases are used each day, two cases are needed as safety stock, and it takes 10 days from placing the order until it is delivered?

(2 x 10) + 2 = 22 cases (When supply dropes to 22 cases, it is time to reorder)

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Par stock method- bring stock up to par level each time an order is placed regardless of the amount on hand

FIFO-First In, First Out (process of rearranging merchandise so that the older containers are in front and are issued first)

Mini-Max-Stock- stock is allowed to delete to safety level before new order is placed. Establish minimum and maximum amounts to have on hand. Amount of food ordered will BE THE SAME EACH TIME)

ABC Inventory classification system ( The relative importance of each inventory item is measured by how much the total value of purchases is for that item each year.)

2. Methods to determine the value of inventory

Purchase price- based on actual purchase price of product; count products; and value of all products on hand

Weighted average purchase price1.Based on average price paid for product over time2.multiply number of units in each production in opening inventory and those purchased during the month by the purchase price. 3.Add these prices and divide by the total number of units

FIFO-based on last price paid multiplied by number of units on inventory LIFO-Last in, First out (uses oldest price paid for an item in inventory)

3. Issuing Proceduresa. removed on written order only (storeroom requisition or issue sheet)b. locked, well-organized, one person in controlc. central ingredient room-quality control measure

IV. Principles of Quantity Food Preparation And Production

A. Dispersion systems ( mixture of various substances in solid, liquid, gaseous state, two phases)

1. Classified according to state of matter in each phase of the dispersion a. gas in liquid-whipped egg whites (foam)

b. gas in solid- sponge cake (suspensoid)c. liquid in liquid-mayonnaise (emulsion)d. solid in liquid- gravy-(sol)e. liquid in solid-custard (gel)

2. Classified on basis of size and of dispersed particlesa. small particles (sugar, salt) true solutionb. large particles (protein, cooked starch) colloidal dispersionc. clumps of molecules (fat, uncooked starch) suspension; separates upon

standing3. Change degree of dispersion-apply heat or beat4. Interface-line that forms between two immiscible liquids (oil and water)

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B. Function of Acid1. Vegetables- most are slightly acid with a relatively high pH

a. necessary to produce at temp. higher than 212F to destroy botulismb. pressure cooker can be used to can low acid vegetables because it

reaches a temp higher than 212c. beets are sometimes pickled with a vinegar (acetic acid) which lowers

the pH, and can now be canning in a boiling water bathd. acid causes loss of color when green vegs are overcooked or canned

1. heat disrupts cells and releases organic acids2. H ions from the acid come into contact with the magnesium in

the chlorophyll3. Magnesium is removed; molecule becomes Pheophytin which is

brown or olive green4. To prevent- Cook for short time; leave lid off for first few

minutes to allow escape of volatile acidsC. Enzymes

1. act as catalysts to facilitate chemical reactions2. may remain active after cells die- must be controlled3. all are proteins-activity affected by temperature and pH4. role in ripening of fruit

a. converts starch to sugar, softensb. enzymatic oxidation causes browning of cut surfacesc. acid will lower pH and inhibit enzyme activity

5. blanch vegetables before freezing to destroy enzymes

D. Browning reactions1. enzymatic-cut surfaces of fruit2. non-enzymatic-Maillard reaction

a. initial step is combination of a redcing sugar and an amino acidb. browning of breadc. more rapid browning-increase pH, increase temp, decrease water

content

E. Heat Transfer1. Conduction

Good conductors-copper, black cast iron, aluminumPoor conductors- glass, stainless steelEx. Meat kept warm on dish sitting on heated pellet

2. Convection-heated air moved with fan3. Radiation-infrared waves coming from glowing heat (Ex: toasting, broiling,

microwave)

F. Engineered Foods1. Composed of a variety of natural and/or synthetic ingredients texturized and modified to simulate the appearance and taste of a particular product

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2. advantages- consistent in year-round availability, taste, appearance, nutrient content; shelf life3. meat analogs- isolate soy protein, vegetable protein, fat, carbohydrate, vitamins, minerals, flavor, color4. seafood analogs-soy blended with fish5. vegetable blends

a. incaparina- maize, sorghum, cottonseed flourb. CSM-corn, soy, non-fat dry milk

G. Preservation and packaging methods1. Food spoilage

a. microorganisms1. Molds

a. warm (77-86), damp, dark conditionsb. grow best in acid, neutral, sweet foodsc. used in curing cheese, making soy sauced. don’t usually produce harmful substancese. boil to destroy

2. Yeastsa. water, energy, acid medium in oxygen, 77-86’Fb. bread-making; produces bubbles of gasc. destroyed by boiling

3. Bacteriaa. need abundant MOISTURE, NEUTRAL foods 68-113’Fb. some >113’F-thermophillicc. aerobic or anaerobicd. destroyed by temperatures of pasteurization (145 F)e. DANGER ZONE 41-140F

4. Enzymesa. act at body temperatures; inactive at boiling

2. Methods of Food Preservationa. chilling <40’Fb. freezing

1. preserves quality for extended time2. preserves nutritive value, chemical and physical properties3. growth of microorganisms prevented by COLD temps and lack of water4. action of enzymes is slow, but noticeable over time5. Commercially, quick frozen: small crystals with smooth feeling6. dehydrofreezing-dried to 50% of weight and volume, then frozen7. thaw potentially hazardous foods in refrigerator or submerge under running cold water at 70 degrees or lower

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c. drying1. low water content prevents growth in microorganisms2. enzymes inactivated by blanching3. freeze-drying: frozen first

d. Canning1. Foods can last UP to 1 year2. done under high pressure for short time to preserve quality3. Bacteria grow best at pH near neutrality

a. high acid foods support less bacterial growthb. botulism more readily destroyed by heat in acidc. if pH is low, acid is high; use boiling waterd. if pH is high, acid is low; use pressure cooker

4.Calcium compounds are additives used as humectant; retain moisture, increase firmness, tenderness5. Aseptic canning: food sterilized outside of can, then aseptically placed in sterile cans which hare sealed in an aseptic environment

e. irradiation-cold sterilization1. temperature of food does not rise much even though large amounts of energy are used2. to prevent off-flavors in meat irradiate FROZEN3. approved by FDA for spices, beef, lamb, pork, poultry, wheat, potatoes

f. Chemical preservatives 1. BHA, BHT- antioxidants for fatty products

g. acids- denature bacterial proteinsh. sugar, salt-make water unavailable

V. Food Production Control Procedures A. Production Schedule

1. assign preparation to employees by hour of the dayB. Standardized Recipes: name, ingredients, procedures, pan size, baking time, temp, quantity, and number of portions or specific sizes,C. Quality Control

1. Employee evaluations, taste panels, customer reactions

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D Quantity Control1. sized portions, dish, serving tool

Scoop Size Measure Ounces#6 2/3 cup 5#8 ½ 4#10 3/8 3 1/4#12 1/3 2 ¾#16 ¼ 2#20 3 1/5 T 1 ½#24 2 2/3 T 1 1/3#30 2 1/5 T 1#40 1 2/3 0.8#60 1T 0.5

** Shortcut: to determine the number of ounces in a scoop, divide the scoop into 32Example: 32/#12 scoop=2.67 ounces

F. Food quality criteria1. qualitative- uses sense organs to test color, odor, taste, texture

a. analytical-differences or similarities, qualities1. Differences or discrimination tests measure ability to recognize small differences between samples

a. paired comparison-two samples presented; compare specific qualitiesb. triangle- three samples presented, two are alikec. dui-tri-test- three samples presented, first is labeled as reference

choose which of other two is different from the referenced. ranking or scaling- classify differences in color, taste in a serial or

directional manner; untrained panelists

2. Descriptive Tests-used to measure quantitative or qualitative characteristicsAttribute ratings-scales based on word phrases Ex. TartnessDescriptive Analysis- defines substance according to objective reference

standard

b. affective-used with untrained panelists; determine preferences, acceptance or opinion of a product

1. hedonic rating-scale, facial hedonic, smiley faces2. paired preference-compares two samples for preferences of a specific

attribute3. ranking test-extension of a paired preference; additional samples

presented

c. Flavor profile method, descriptive flavor analysis profile (DFAP)

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1. trained panel analyzes and records the aroma and flavor

2. Objective measures of food qualitya. penetrometer- tenderness, firmness, baked custardsb. viscosimeter- consistency; battersc. linespread test-viscosity, saucesd. specific gravity- compares lightness of products, ratio of the density of a food to that of water

VI. Distribution and Service SystemsA. Conventional= all preparation done on premises where meals are served

1. advantages- more adaptable to individual preferences, menu flexibility, low distribution costs2. disadvantages-uneven stressful workday, workload varies as menu differs, productivity lower, high labor costs3. Delivery

a. Centralized-trays set up in central serving areab. Decentralized-used where distance from kitchen to patient is greatc. automated cart system- built in corridors

B. Commissary-satellite: centralizes production1. Menu items are in bulk or portioned, then frozen, Carriers are filled at the commissary and delivered to the service units2. Advantages-Centralized, uniform quality3. Disadvantages-delivery and safety issues

C. Ready-Prepared (cook-chill, cook-freeze)1. Prepared on premise, frozen, chilled, for later use; requires blast2. Separation between time of preparation and time of service3. Food may be held 1-5 days; up to 45 days 4. Rethermalization5. Advantages- decreased job stress, production schedule more liberal6. Disadvantages-cost of large cold storage freezers

7. FDA Food Code Temperatures-degrees FHold Frozen 0- -10Transport Hot 165-170Hold During Serving 135Do not Hold Between 41-140

**Reheat to 165 for 15 seconds within 2 hours leftovers rapidly cooked (two stage process)

1. cool quickly from 140 to 70 within 2 hours2. cool from 70 to 41 within an additional 2 hours3. total cool time = 6hours

D. Assembly service (total convenience)1. On site food production

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2. May use precooked and vacuum packaged3. Advantages

1. Curtail labor time by separating manufacture from distribution2. Equipment and Space requirements are minimal3. Disadvantage- limited menu items, quality, and acceptability4. ONLY has four critical control points (delivery, storage, heat, service)

E. Service systems1. Self-Service

a. Cafeteria1. traditional-serve 3-4 minutes2. Hollow square-separate counters for hot foods, salads, etc3. Food Bank, electronic-precooked, frozen mean

b. vendingc. buffet

2. Waiter Servicea. Counter: ease, speedb. table

1. American- water takes order, portioned to plates in kitchen2. French-portions brought to table on platter, waiter completes

prep. At table3. Russian-prepared and portioned in kitchen, brought to table on

serving platters4. Banquet-preset menu and service

3. Portable Meals (Ex: Meals on Wheels)

VII. Safety and SanitationA. Safety and Sanitation

Prevent fire, accidents, health hazards Provide adequate lighting, non-slip floors Arrange work and storage heights properly Store knives safely Clean ability ( Ex: floor drains) Safety polices and programs

B. Government Standards1. OSHA-Occupational Safety and Health Act (LAW)

a. minimum safety standardsb. record keeping of accidents and illnessesc. inspection of facilitiesd. HCS (Hazard Communication Standard) requires plan to communicate chemical hazards to employees**MSDS (Material Safety Data Sheet) mist be available on all chemicals

C. Fires

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ClassA Ordinary materials, wood, paper, cloth TriangleB Flammable liquids, gases, greases SquareC Live Electrical Fires Circle

2. ExtinguishersFoam: A, BCarbon dioxide: B and CWater plus CO2, soda, acid: ADry Chemical: B, C

D. Chemical Cleaning Supplies1. Regulated by EPA (Environmental Protection Agency)2. Most common chemicals:

a. chlorine solution 50ppm pH <8b. Iodine 12.5-25 ppm pH <5c. Quaternary Ammonia 150-400 ppm pH <7

3. Most state and Local codes require immersion in chemical solutions for at least 60 seconds using water about 75’F

VIII. Facility PlanningA. Planning considerationsB. Ergonomics, environmental design

1. studies activities so that they are done safely2. Comfortable seating, noise control, mobile equipment, close storage areas3. easy entrance and exit

C. Planning Procedure1. Prepare a planning guide2. Organize Planning team

a. ownerb. food service managerc. architect, design consultantd. equipment representativese. builderf. business managerg. mechanical engineer

3. Feasibility study-research and date analysis to justify project4. analyze menu5. Layout and design

IX. Equipment SelectionA. Specifications

1. electrical: voltage, watts, type of current

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2. gas: BTU British Thermal Unit3. Steam: PSI pounds per square inch4. Include Warranty

B. Standards1. National Sanitation Foundation International (NSF)

a. voluntary participationb. complies with foods safety and sanitation standardsc. equipment is of acceptable design, materials, construction, performanced. rounded tightly sealed corners

2. Underwriter’s Laboratories (UL)a. voluntary preparationb. safety of electrical equipment

C. Materials1. stainless steal-durable wears well2. finish of metals3. aluminum-strong, light weight

D. Arrangement, ease of cleaning

E. Modular-components put together for customized look

F. Dishwashing: clean, sanitize1. Three Compartment Sink

a. wash 110-120’Fb. rinse warm waterc. sanitize 180’F for at least 30 seconds, or use chemical

solution for 1 minute in lukewarm water

2. Mechanicala. stages

1. pre-rinse, pre-wash, 110-140’F2. wash 140-160’F3. Rinse 170-180’F4. Air-dry 45 seconds

b. types1. rack: tableware placed in racks2. Conveyer belt or flite type3. low energy chemical dish machines

c. StylesMeals per Hour StyleUp to 50 Counter-Style50-250 Door Style, single tank conveyer

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250-1500 Single or double tank conveyer1500 + Flite-type conveyer

G. Ovens1. deck-units stacked 2. convection-fan for circulation; takes 10-15% less time3. rotary, reel, revolving tray- food is in motion while in oven4. microwave

H. Stem Cooking—More energy efficient than electric or gas1. source may be direct steam, or self generated2. reaches at least 212’F3. Measured in PSI ( pounds per square inch)

a. temperature rises as pressure risespsi degree F0 2122 2184 2246 2308 23510 24015 250

4. large batch compartment steamers 5-8 PSIa. most vegetables cook in 5-10 minutes

5. high Pressure steamers- 15 PSIa. “batch cooking” vegetablesb. reduces long holding periodsc. located next to serving line

6. no-pressure convection steamersa. can handle large quantitiesb. steam enters at 212’

7. Steam-Jacketed Kettlea. two sections of stainless steel b. food does not touch steamc. Very energy efficient 5-8 PSId. types: deep, shallow, trunion or tiltinge. uses both conduction and radiation heating

8. Kettle Sizes-depends on foods, volume, turnovera. 5-20 gallons-vegetablesb. up to 40 gallons-entreesc. >40 gallons-high liquid content

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I. Infrared Tubes- keep food warm1. less loss of moisture over conventional heating units

J. Mixers1. planetary action-arm moves in circle while rotating beater

K. Deep fat Fryers1. Recovery Time2. Fry under pressure to DECREASE cooking time3. Stainless Steel

L. Self-Contained refrigerators1. temp regulated through attached compressor

M. Energy cost control1. More energy is consumed in production of Foods than for any other activity in foodservice

N. Depreciation1. Costs associated with the acquisition and installation of a fixed asset2. Straight line depreciation-gives ANNUAL depreciation

Value of the equipment (cost) – salvage value# of years of useful life

Example: If a dishwasher costs $24,000 and has a usable life of 8 years, and a salvage value of $2400, a depreciation expense of $2700 would be claimed Each Year.