kitchen economics 101 prepared by the prostart team national restaurant association solutions
TRANSCRIPT
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Kitchen Economics 101
Prepared by the ProStart TeamNational Restaurant Association Solutions
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Teaching Kitchen Economics
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Teaching Kitchen Economics
Challenges
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Teaching Kitchen Economics Strategies
Equate food with money
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Teaching Kitchen Economics Strategies
Tips and Tricks
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Teaching Kitchen Economics Strategies
Sneak math in the back door
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Teaching Kitchen Economics Strategies
Apply to everyday work
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Teaching Kitchen Economics Strategies
Reduce to steps!
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Areas To Be Explored
1. Recipe Conversions
2. Food Costing
3. Menu Pricing & Food Cost Percentages
4. As Purchased and Edible Portions
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Part 1: Recipe Conversions
Key Terms:• Standardized Recipe• Yield• Portion Size• Conversion Factor
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Recipe Conversions
Standardized Recipe:
A recipe or formula that can be easily duplicated by a number of individuals and still achieve the same result(ProStart Year 1 pg. 180)
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Recipe Conversions
Yield:
The total amount that a recipe produces
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Recipe Conversions
Portion Size:
The exact amount of food that a guest is given
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Recipe Conversions
Conversion Factor:
“Changing the Yield”
The number we multiply ingredients by to arrive at a new yield
(ProStart Year 1 pg. 188)
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Step # 1:
Determine the yield:
24 (# of portions) x 6 oz. (portion size)
144 oz.
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Step # 2:
•Determine original yield
•Determine desired yield
Desired Yield = Conversion Factor
Original Yield
ProStart year 1 pg. 386
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AVOID MATH ANXIETY!
Tips and Tricks
Desired Yield over Original Yield
or
“Just Do It!”
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Plugging in the Numbers
Original Yield: 24 x 6 = 144
Desired Yield: 56 x 8 = 448
448 = 3.111111 or 3.1
144
3.1 is our conversion factor, or
the number we multiply our ingredients by
to arrive at our new recipe amount or yield
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Calculate the Conversion Factor
Original Recipe: 24 12 oz. servings
New Recipes: CF: ?
125 8 oz. servings
12 12oz. servings
48 10 oz. servings
64 6 oz. servings
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In Review
1. Calculate Original Yield
2. Calculate Desired Yield
3. Divide and remember – Just do it!
4. Multiply ingredients by conversion factor
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Part 2: Food Costing
How much does it cost?
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Road Map to Determining Food Cost
1. Convert everything to ounces
2. Determine cost per gallon/pound/quart
3. Divide ounces by cost
4. Multiply per ounce cost by ounces
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Costing the Recipe
Chicken Stock 1.5 gal. $4.98 gal.
Milk 12 oz. $2.38 gal.
Heavy Cream 4 oz. $1.28 qt.
Eggs 3 $1.29 dz.
Tomatoes 4 $15.95 Cse.
(there are 30 tomatoes per case)
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Step #1
Convert to Ounces
Chicken Stock1 ½ gal.
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Step #1
How do we convert?
Option #1 - Multiply
128 oz. in a gallon
128 x 1.5 = 192
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Step #1
How do we convert?
Option #2 - DIVIDE AND CONQUER!
128 ÷ 2 = 64 (or ½ of 128)
64 + 128 = 192
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THE BOTTOM LINE!
THE BOTTOM LINE!
“It doesn’t matter what road you take, as long as you arrive at your
destination!”
Step #1
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Step #2
Determine cost of product
Information supplied by your purveyor or where you purchase your food
from.
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Step #3
Determining per ounce cost
Tips and Tricks #2
WHEN DEALING WITH MONEY, MONEY COMES FIRST!
$$$$$$$$$$$$$$$$$$$$$$$
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Step #3
The Formula
Cost# of ounces in unit of measure
Equals
PER OUNCE COST
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Step #3
Example
Chicken stock $4.98 gal.1 gal. equals 128 ounces
4.98 ÷ 128 = .0389062!
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Step #4
Determine the cost of each ingredient
To do so we simply multiply…..
Per ounce cost
x
# of ounces in the recipe
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Step #4
Determine the cost of ingredients
per ounce ounces cost.0389062 x 192 = $7.47
but the question is……..
To round or not to round?
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Step #4
Determine the cost of ingredients
Not rounding:
.0389062 x 192 = $7.47
Rounding:
.04 x 192 = $7.68
Which do you prefer?
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Step #4
Determine the remaining ingredients cost……….•Milk•Heavy Cream•Eggs•Tomatoes
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Determine Cost for Each Item
Chicken Stock 1.5 gal. $4.98 gal.
Milk 12 oz. $2.38 gal.
Heavy Cream 4 oz. $1.28 qt.
Eggs 3 $1.29 dz.
Tomatoes 4 $15.95 Cse.
(there are 30 tomatoes per case)
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Determine Cost per Serving…...
•Calculate individual ingredient cost
•Add total of all ingredients
•Divide by number of ounces in yield
•Multiply by number of ounces in serving
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Part 2: Menu Price & FCP (%)
Key Terms:• Menu Price• Food Cost Percentage
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Menu Price & FCP (%)
Menu Price:
The amount a guest is charged for their meal, taking into account all costs; food, labor, and any other costs relating to producing and serving the meal
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Menu Price & FCP (%)
Food Cost Percentage (%):
The percentage of the menu price that represents the cost of ingredients
(ProStart Year 1 pg. 471)
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Formula for determining menu price using FCP
Ingredient cost
FCP
Menu Price
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Formula for determining menu price using FCP
$1.46 (food cost)
33% (food cost percentage)
$4.42 (menu price)
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To determine FCP with a given menu price
Ingredient cost
Sales
FCP
(ProStart Year 1 pg. 471)
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Part 4: AP & EP
Key Terms:• AP: As Purchased• EP: Edible Portion
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AP & EP
AP – As Purchased:
The total weight or amount of a product before trimming
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AP & EP
EP – Edible Portion:
The weight or amount of product after trimming
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AP / EP & Yields
There is an amount of product that is lost during trimming – this is the
difference between AP & EP
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As Purchased and Edible Portion
•Refer to percentage yield chart
• Every vegetable has a percentage yield
• To determine AP: divide EP by yield %
• To determine EP: multiply AP by % yield
(ProStart Year 1 pg. 389)
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For More Information:
PowerPoint and handouts can be requested by contacting the
ProStart Team at 1-800-765-2122
Thank You!