PART 3 22ND (1)
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SECTION 3 COST RECIPES
What Is a Food Cost?
Food cost is the ratio of a food outlets cost of ingredients (Food Ingredients) and the revenue that those
ingredients generate when the menu items are sold (Food Sales).
Food cost is always expressed as a percentage and can range from 20% all the way to 35% on average.
For example, a hotel will have a higher food cost as they have the input of room revenue, whereas a stand-
alone food outlet generally only has food & beverage sales to finance the business, so a lower food cost is
needed.
A simple way to put it is:
The higher the food cost the lower the profit.
The lower the food cost the higher the profit.
Calculations In the Kitchen
The importance of understanding numbers and calculations cannot be underestimated when working in
the kitchen. Everything we do is based on scaling, converting, and calculating recipes which are expressed
in numbers.
What is scaling?
Scaling is when we weigh or measure ingredients when doing our Mise En Place to produce food.
In our line of work, it is important for us to make money for our employer or for ourselves, whilst still
providing the best quality we can deliver to our customers so we must know how to come to the required
food cost percentage. This enables us to ensure a return to the owner/investor, so a basic knowledge of
food costing is required.
Accuracy in following recipes correctly is very important in all kitchens, failing to weigh ingredients
correctly will result in the following problems:
Incorrect recipe yield. (Wastage)
Running out of food during service.
Failure to meet the required food cost (Profit)
The food will taste different than what is required.
In pastry the recipe will not work. (Too hard or too soft)
In this chapter we will take you through all the steps from raw ingredients to understanding basic recipe
costing.
Weights
With the advent of accurate electronic scales, it has become more common to weigh liquids for use in recipes, avoiding the need for accurate volumetric utensils.
Ingredients are counted in grams in this costing format example 1Kg Flour is 1000Gr Flour.
1 Ml of water weighs exactly 1 Gram so a recipe calling for 300 Ml of water can simply be substituted with 300 Gr of water.
Trim Yield
The first step is how to calculate fruit, herb, and vegetable weights.
Vegetables Herbs and fruit are very common ingredients in kitchens and in most instances, we are required
to peel, trim, or seed these ingredients, and know how much is left for use.
How to calculate the Edible Portion percentage
A
s P
urchased AP Weight and E
dible P
ortion EP Weight
The percentage yield of a Fruit or Vegetables indicates an average how much of the AP weight A
s
P
urchased weight is left after trimming to produce the ready to cook/use ingredient which is called the EP
Weight E
dible P
ortion Weight.
How to Calculate the EP Yield?
Weigh the Fruit or Vegetable before trimming/peeling this is the AP Weight
Trim/ peel/core the items as required to get the edible portion.
Weigh the trimmed item this is the EP Weight
Divide the AP Weight by the EP Weight
Yield Variations
The yield can vary to the skill levels of your staff. Inexperienced staff will produce more wastage in all areas. The size of the vegetables will also vary.
Specify in your ordering the size you require.
The quality of your ingredients. This is where stock rotation is vital as spoiled ingredients result in a dead loss.
A list of common EP portion percentages is listed here.
FRUIT EP %
VEGETABLE EP%
1
Apples
93
1
Asparagus
55
2
Avocados
75
2
Beans, green,
88
3
Bananas
64
3
Beetroot
45
4
Blueberries
87
4
Broccoli fresh, untrimmed
81
5
Blueberries, frozen
91
5
Broccoli frozen, spears
90
6
Cantaloupe
47
6
Broccoli fresh, trimmed, florets
100
7
Clementine Oranges
80
7
Brussel Sprouts
74
8
Coconut
50
8
Cabbage
90
9
Grapefruit
48
9
Capsicum
80
10
Grapes
97
10
Carrots fresh, baby
100
11
Honey Dew
60
11
Carrots fresh, without tops
83
12
Honeydew Melon
46
12
Carrots frozen, sliced, cooked
95
13
Kiwi
87
13
Cauliflower, fresh
62
14
Lemon
45
14
Celery
83
15
Lime
35
15
Cucumber
84
16
Mangoes
69
16
Egg Plant
81
17
Oranges, canned
61
17
French fries, crinkle cut
81
18
Papaya
65
18
French fries, curly cut
66
19
Peaches, fresh, whole
76
19
French fries, straight cut
63
20
Pears
75
20
Garlic
87
22
Pineapple
61
21
Leek
50
23
Pineapple
55
22
Lettuce, fresh, dark green leafy
66
24
Plums
95
23
Lettuce, fresh, iceberg
76
25
Strawberries
88
24
Lettuce, fresh, romaine
64
26
Watermelon
61
25
Mushroom
95
26
Onions, green
83
27
Onions, mature,
88
28
Parsley
85
29
Peas
38
30
Potatoes Chef
85
31
Potatoes Red
81
32
Potatoes, frozen, wedges
83
33
Radish
90
34
Shallots
89
35
Spinach, fresh,
88
36
Sweet potatoes
80
37
Tomatoes
86
38
Turnip
80
39
Zucchini
95
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Butchers Yield Test
Fruit and vegetable trim isn’t very valuable and is usually considered waste. However, some of the trim from meat, poultry and seafood has value.
You can use it to make other saleable dishes.
EXAMPLE 1
We will use the lamb shoulder for our lamb navarin as an example. We usually buy in Lamb shoulders whole.
For this example, we will bone, trim, and then dice the lamb.
1
Weigh the whole shoulder of lamb.
AP weight
2000Gr
2
Bone and trim the shoulder.
3
Weigh the Edible Portion
EP weight
1600 Gr
4
Weigh the useable trim.
Useable trim
170 Gr
5
Weigh the waste trim.
Waste trim
230 Gr
Yield Percentages
1600 EP ÷ 2000 AP X 100 = 80%
The lamb shoulder is valued at $22.00 per Kilogram.
1.6 X 22. OO = 35.20
Cost of the lamb used is $35.20.
Useable trim 170 Gr
UT 170 ÷ 2000 AP X 100 = 8.5%
The trim is sent to our butcher shop to be included into our lamb rosemary sausages.
Cost of the trim .170 X 22 = $3.74
Waste trim 130 Gr
WT 230
÷ 2000 AP X 100 = 11.5%
The bones may be kept and used in the production of stock/soup.
Cost of the waste .230 X 5.06 =$5.06
EXAMPLE 2
Our restaurant has an upcoming booking for 15 covers with 200 Gr Grilled Striploin on the menu.
Our head chef ordered a whole striploin weighing 4600 Gr.
The W
aste T
rim is known at 26%
Will we have enough steak for the function? How do we calculate to find out?
1
AP WEIGHT 4600 X 26 ÷ 100 = WT 1196 (Waste Trim)
2
AP 4600 – WT 1196 = EP 3404
3
3404 ÷ 200 = 17 steaks
Its calculated we have enough with 2 left over
The striploin will be kept in case we need them during the function and, if not be sent to the coffee house kitchen for use on the A la Carte menu
EXAMPLE 3
You have cleaned one portion of squid and obtained an EP yield of 120 gr which equates to 42.85%
.
How much AP squid did you have before cleaning and trimming?
120 ÷ 42.85 X 100 = 280 Gr of AP Squid
How To Calculate the Quantity Required For 8230 Grams of Ep Lamb
8230Gr ÷ 0.80 = 10,287 Gr of AP weight of lamb shoulder to order.
We would round up to 10,300 Gr of Lamb Shoulder to order.
Calculate Amount Needed to Order.
Due to the difference in weights after we peel, trim, bone or seed these ingredients, we need to know how much to order to correctly complete the recipe.
Example
You need 8230 Gr of Edible Portion Diced Lamb shoulder for the upcoming function.
How much As Purchase Lamb shoulder do you need to order?
We previously did a butchers yield test on lamb shoulder and worked out we have an 80% yield percentage.
The first step
Change the % to a decimal by moving the decimal point 2 places to the left. Change the percentage to a decimal 80% = 0.80.
The second step
Divide the EP weight required by this number 0.80 to get the AP weight.
8230Gr ÷ 0.80 = 10287 Gr of AP weight of lamb shoulder to order for the function.
Weight of Ingredient ÷ Weight of the Flour X 100
Calculating Percentages
Patisserie recipes are often based on ratios and percentages.
Ratios are used to ensure a consistent result and give you a basic understanding of how a recipe is put together, based on how the different ingredients interact with each other during preparation and baking.
Bakers Percentage
Sometimes pastry and bakery recipes are represented as percentages or ratios this is called bakers percentage.
Flour is always counted as 100%
All other required ingredients in the recipe are expressed as a percentage of the flour. The easiest formula to calculate bakers’ percentage is:
We have a basic recipe here for French Baguette
French Baguette
Required Weight
No Required
Ingredients
Weight
Unit
Bakers %
Bread Flour
4600
Gr
Water
2550
Gr
Yeast
175
Gr
Malt Extract
135
Gr
Salt
43
Gr
Recipe Yield
7503
Gr
Using the formula above
Water:
2550 ÷ 4600 X 100= 55.43 Round down to 55%
Yeast:
175÷ 4600 X 100= 3.80 Round up to 4%
Malt:
135 ÷ 4600 X 100= 2.93 Round up to 3%
Salt:
43 ÷ 4600 X 100= 0.93 Round up to 1%
See the recipe below with completed bakers’ percentage
French Baguette
Required Weight
No Required
Ingredients
Weight
Unit
Bakers %
Bread Flour
4600
Gr
100
Water
2550
Gr
55
Yeast
175
Gr
4
Malt Extract
135
Gr
3
Salt
43
Gr
1
Recipe Yield
7503
Gr
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Ingredient Weight ÷ Recipe Yield X Required Weight = New Yield
Calculate Recipes to A New Yield.
At times it is necessary to recalculate master recipes to obtain a new yield.
This enables us to produce what is required and prevents us from making more than what we need which helps prevent wastage.
Below is a standard recipe card with a known yield for 9 portions
An upcoming function for the banquet kitchen requires enough portions of Lamb Navarin for 50 people. How do we recalculate this recipe to achieve enough portions for 50 serves?
We must firstly calculate the Recipe Yield.
This is the total weight of all the ingredients combined! For this recipe it is 3785 Gr
To find out the weight for 1 portion of Lamb Navarin we need to divide the recipe yield by known serve yield
which in this case is 9.
3785 ÷ 9 =420
The required number of portions is 50. 420 x 50 = 21000 is the new required weight
STANDARD RECIPE & COSTING CARD
RECIPE FOR:
LAMB NAVARIN
RECIPE DESCRIPTION:
Tender lamb braised in thick rich espagnole sauce garnished with winter vegetables and champignons.
STUDENTS NAME:
John Smiff
RECIPE NUMBER
:
484
Total Weight
3785
Portion Cost
4.04
Total Portions
9
Plus 10 % GST
0.40
Portion Size in Gr
420
Total Cost
4.44
Portions Required
50
Selling Price + GST
13.02
Required Food Cost
32
New Req Weight
21000
No
Ingredients
Recipe
Weight
Unit
Ingredient
Cost
Cost
Single Serve
Required
Weight
Total
Cost
Recipe information
1
Diced Lamb Shoulder
1500
Gr
166.4
8320
Meal Type
2
Lard
60
Gr
6.7
333
Outlet Name
3
Flour
60
Gr
6.7
333
Preparation Time
4
Sugar
30
Gr
3.3
166
Serving Temp
5
Garlic (crushed
25
Gr
2.8
139
Course
6
Turnips, small
150
Gr
16.6
832
Equipment/Utensils Require
7
Bouquet Garni
1
No
0.1
6
8
Lamb Stock
550
Gr
61.0
3051
9
Tomato Paste
180
Gr
20.0
998
10
Red Wine
120
Gr
13.3
666
11
Champignons
210
Gr
23.3
1165
12
Bacon (lean)
180
Gr
20.0
998
13
Potatoes, small
560
Gr
62.1
3106
14
Peas
150
Gr
16.6
832
15
Chopped Parsley
10
Gr
1.1
55
Diced Lamb Shoulder 1500 ÷ 3785 x 21000 = 8320
Cost of ingredient ÷ Ingredient Purchase weight = Ingredient Unit Cost
Ingredient Unit Cost
With the widespread use of Excel spreadsheets, databases, and food costing programs to calculate food
costs for us automatically, the laborious and timely task of using calculators and manually recording the
calculations has gone.
A basic working knowledge of excel is required to use these spreadsheets correctly, so it is highly
recommended that you spend some time to learn the basics of excel. It is also still good to know the basic
sums used in this chapter.
The first simple calculations you need to establish is for the unit cost.
For example, if a 25 Kg (25000Gr) bag of bread flour cost $ 88.00 how much is 1 Kg? So, $88.00 ÷ 25 = $ 3.52 per kg
Basic Food Cost Calculations
The restaurant business is a very tough one to succeed in.
Numerous studies on restaurant failure rates found that up to 58% of restaurants fail in their first year and up to 75% close within five years of their opening.
Getting your food cost correct is so important as this is the life blood of any food and beverage business. Getting this wrong can cause losses to the business.
The key to food cost is lower the food cost the higher the profit and vice versa. High food costs lead to less profit which can destroy a business.
Budgets
There are numerous reasons for food businesses closing down, but the primary reason is that they fail due
to running out of money. To prevent this the budget is calculated by the owner in conjunction with the
Executive chef. This budget can be calculated yearly or even half yearly and is based on sales figures or
projected sales figures. After the budget is calculated the next step is to calculate the required food cost.
The required food cost is essential to meet budget and allow the business to record a profit.
After all the business is set up to make money to cover all the overheads and return a profit to the owner/s. Without this profit the business will close due to debt.
What are the overhead costs in a restaurant or food business?
Utilities (Electricity, water, gas)
Hazardous waste disposal
Rates (Council expenses)
State government taxes
Cost of Ingredients
Salaries
Rental
Price lists
Another important step is to source out from numerous suppliers the cheapest price list for the required
quality for all the ingredients in your recipes that are in your menu.
Supplier invoices are also another source to get the price of ingredients.
An old saying in the food industry is GIGO Garbage In Garbage Out. So, you need to make sure you source
the best quality for the best price. The quality of the ingredients must match your food outlets standards
based on your customer profile.
Cost Of Portion ÷ Required Food Cost X 100 = Required Selling Price
Before trying to work out the actual food cost and selling price we must have the following
information at hand
Complete recipe.
Cost of all ingredients this requires a weight and a price.
The required food cost.
The recipe below shows all the calculations you need to do to obtain the actual cost of making 1 portion of
Lamb Navarin which we recalculated to a new yield. the required selling price to achieve the food cost
percentage as stipulated by the owner’s yearly budget.
Total cost per portion is $4.04. Required food cost is 32%
$4.04 ÷ 32 X 100= $ 12.62
STANDARD RECIPE COSTING CARD
RECIPE FOR:
LAMB NAVARIN
RECIPE DESCRIPTION:
Tender lamb braised in thick rich espagnole sauce garnished with winter vegetable and
champignons.
STUDENTS NAME:
John Smiff
RECIPE NUMBER
:
484
Total Weight
3785
Portion Cost
4.04
Total Portions
9
Plus 10 % GST
0.40
Portion Size in Gr
420
Total Cost
4.44
Portions Required
50
Selling Price
12.62
Required Food Cost
32
Selling Price + GST
13.02
No
Ingredients
Recipe
Weight
Unit
Ingredient
Cost
Cost
Single Serve
Required
Weight
Total Cost
Recipe information
1
Diced Lamb Shoulder
1500
Gr
$15.00
$22.50
166.4
8320
$83.20
Meal Type
Lunch
2
Lard
60
Gr
$4.50
$0.27
6.7
333
$24.96
Outlet Name
Banquet
3
Flour
60
Gr
$2.30
$0.14
6.7
333
$12.76
Preparation Time
2 Hours
4
Sugar
30
Gr
$3.50
$0.11
3.3
166
$19.41
Serving Temp
Hot
5
Garlic (crushed
25
Gr
$4.00
$0.10
2.8
139
$22.19
Course
Mains
6
Turnips, small
150
Gr
$6.25
$0.94
16.6
832
$34.67
Equipment/Utensils Required
7
Bouquet Garni
1
No
$4.20
$0.00
0.1
6
$23.30
Bratt Pan
8
Lamb Stock
550
Gr
$4.78
$2.63
61.0
3051
$26.51
Cutting Boards
9
Tomato Paste
180
Gr
$6.89
$1.24
20.0
998
$38.22
Large Paddle
10
Red Wine
120
Gr
$7.96
$0.96
13.3
666
$44.15
Gastro Inserts
11
Champignons
210
Gr
$11.20
$2.35
23.3
1165
$62.12
12
Bacon (lean)
180
Gr
$6.89
$1.24
20.0
998
$38.22
13
Potatoes, small
560
Gr
$5.21
$2.92
62.1
3106
$28.90
14
Peas
150
Gr
$6.14
$0.92
16.6
832
$34.06
15
Chopped Parsley
10
Gr
$11.24
$0.11
1.1
55
$62.35
The Minimum Selling Price Is $12.62 To Achieve A 32% Food Cost.
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Other Important Details
To ensure compliance with the venues pricing procedures portion control will need to be monitored and adhered too. Pricing will also need to be monitored as seasonal and market fluctuations regularly occur.
Slight and short market fluctuations can be compensated for by the addition of cheap menu items with more of a profit percentage that is a cheap item that has been increased in price due to its popularity.
Calculating The GST
Goods and services tax (GST) is a broad-based tax of 10% on most goods, services and other items sold or consumed in Australia.
What is the easiest way to calculate GST?
To work out the cost of an item including GST, multiply the amount of GST by 1.1.
$4.04 × 1.1 = 4.44
To work out the GST component, divide the GST inclusive cost by 1.1.
$4.04 ÷ 1.1 = 4.04
The Benefits of Technology
Electronic systems can automatically update standard recipe calculations whenever you adjust the yield,
unit or unit costs. For example, when adjusting a standard recipe from 5 portions to 20 portions, the
software or spreadsheet will automatically calculate the increased quantities and costs for you. When
adjusting a supplier’s cost from $4 per kilogram to $4.25 per kilogram, you can enter the information once,
and any recipes associated with that ingredient or supplier are automatically updated to reflect the price
increase.
Throughout this section, you will learn a range of manual techniques to calculate portion yields and costs
from raw ingredients. While modern technology can simplify the process, it is important to have a general
understanding of how calculations are performed, particularly if you’re involved in creating your own
spreadsheets or checking spreadsheet calculations for accuracy.
Options for dealing with dishes that are not cost-effective.
You could drop the dish from the menu and replace it with a more cost-effective one. But this is not your only option, examine every component of the recipe.
Consider ways you could reduce costs (reducing portion size, cutting down on or replacing more expensive ingredients).
In the seafood salad example, you could replace green king prawns with banana prawns (a cheaper
alternative) and/or replace fresh scallops and crab meat with frozen.
If the dish has wide customer appeal and balances that section of the menu, keep it in its original form, but sell it at a reduced profit margin.
You might be able to offset the loss by increasing prices on other more cost-effective dishes (soups, desserts, and vegetarian meals).
Menu Grouping
Menu grouping can also be used to moderate fluctuations in food cost percentages.
Menu grouping is the practice of placing 2 or more similar items with similar properties and costs together;
manipulating the price of the two appears to make one more of a bargain than the other, when it is in
reality, it is sitting slightly above its percentage price.
Thus, ensuring that more often than not the product with the higher percentage of profit margin is the
most frequent sale.
Control Catering Costs
Once a menu has been formalized, and the prices have been costed to the correct percentage the final
thing that is needed to be done to ensure that the projected food cost percentage are achieved is to
monitor the operations of the kitchen and observe how the customers react to the food that is served to
them.
Food costs can be monitored in several ways, including:
The methods of ingredient delivery:
Is food arriving in a fresh and usable state?
Is it being stored correctly, is food lasting as long as it should?
Is what you are paying for arriving in the right quantities?
The amount of wastage generated by the kitchen staff:
Is food being cooked correctly?
Are the right size portions as according to standard recipe cards being served?
Is food being used before it is being thrown out?
Ensure that theft does not occur:
One of the biggest contributing factors to percentage blow outs is Theft, which needs to be
monitored constantly.
Theft can occur in the common ways such as staff removing items from the property, and in ways
such as suppliers in cohort with another party, altering delivery documentation or issuing false
invoices that suggest more than what has been delivered is delivered.
Regularly review:
By reviewing purchase prices, invoice in costs and seasonal fluctuations in food the effects of product
pricing can be limited if there is a sharp and extended price variance to that of when the menu was
originally costed.
Select And Use Appropriate Control Systems.
Depending on the scale of the venture, a way to monitor catering operations will need to be implemented. Monitoring the catering operations will not only mean watching what portion sizes are actually being served but will also involve monitoring how much food is being wasted.
Portion control can be done in many ways, through experience and lots of practice it is possible to do
estimates that are close to the mark, but for the best results, the use of a measuring system of some
description needs to be implemented.
Measuring can be as simple as using designated size containers to produce a volume of product to as fine
as weighing to the gram the amount of ingredients used, for some dishes, portion control could be as
simple as counting and ensuring the right number of items go into each dish.
By monitoring the amount of food that is returned at the completion of the dinning period, an indication of
whether or not portion sizes are to customers requirement s can also be gauged.
Waste Management
Waste management is a critical part of menu costing, as soon as there is waste there is a variance in food cost, even a small portion of waste, can over time add up to a large yearly waste bill.
For example
$1.80 for a bunch of herbs does not seem very much money, but if every day for a year 1 bunch of herbs was thrown out it would be nearly $657.00 a year.
The simplest way to monitor waste would be to watch how much is going out the back door in garbage bins. But the ideal situation would be to monitor the in-kitchen operations to prevent food making it to the bin. Stock storage and rotation procedures must be utilized. Focusing on the FIFO principle as well as accurately dating and labelling all food products.
Wastage Can Also Include:
Poor cookery technique- which requires supervision and training of less senior staff.
Customer complaints from unsatisfactory meals received.
Errors from staff when placing orders.
Errors from staff when delivering meals to customers.
Errors from staff when cooking required items.
Errors from staff when overcooking or undercooking food
Trimming errors when serving more than one customer at a time that requires groups of meals to be
re cooked.
Cooking in corrected amounts per recipe
Improper preparation techniques – such as filleting of fish and meats poorly that result in disproportionate wastage levels.
Charting or taking physical notes on the amounts of food, both in stock and being served to customers can greatly help reduce food costs.
Monitoring the food levels at hand can assist with tracking theft, and stock rotation issues. As well as greatly improve procurement procedures.
Working from par levels, in relation to food production volumes and stock ordering can reduce waste, par levels and documentation can be manually or electronically calculated.
Well monitored production lists outlining how to produce required food, and in what quantities to produce will ensure minimization of waste.
Tracking of ordering errors, both ordering errors from wholesalers and from the side of the front of
house. If meal errors occur from the front of house, and replacement meals are required, or if meals are
comped.,
(Not charged) due to complaints or confusion then these meals need to be recorded and credited back to
the kitchen balance sheets. As they need to be accounted for as wastage when stock take and profit and
loss statements are prepared.
Plan Production Schedules
Not only do food costs need to be considered in relation to a successful venue, but labour costs also need to be taken into consideration.
Workflow plans properly written with delegated jobs for each staff member using and exploiting their
talents will enable a production of much greater volumes of food. In limited time frames, thus enabling a
higher dollar per hour production rate.
Menus need to be structured so as that they are able to be prepare for, without complication in the
kitchen, and the kitchen needs to be suitably stocked with appropriate equipment and food to allow for
the menu to be produced.
Production schedules need to be structured to exploit the talents of the kitchen, it is possible to have
people assigned to individual tasks, thus allowing more than one job to be completed at a time, which will
give a higher rate per hour of production.
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Daily Sales Reports
An effective way to monitor and control the costs of your food.
Most catering venues would have a way of collecting sales data, be it electronically or manually, these
reports are created automatically using information input from the restaurants POS system and information
from our standard recipe costing cards and delivery notes/invoices. These are generated daily, weekly and
monthly the results can also be used to give an overview of what the customers are focused on and what
doesn’t draw their attention, from analysis of these results then decisions can be made regarding the
future use of menu items.
Below is an example of a simple daily sales report this gives us quite a few details we need to monitor to
ensure a profitable business.
STANLEY JAMES STREET BISTRO Daily Sales Report
Date
14/04/2023
Entrées
Portion Cost
Sales Price
Covers
Cost of food
Revenue
Food Cost%
Smoked Salmon
$3.10
$16.80
25
$77.50
$420.00
18.5%
Potato Cream Soup
$1.80
$14.50
10
$18.00
$145.00
12.4%
Beef Carpaccio
$5.10
$19.80
8
$40.80
$158.40
25.8%
Main Courses
Portion Cost
Sales Price
Covers
Food Cost
Revenue
Food Cost%
Seared Duck
$7.50
$26.50
25
$187.50
$662.50
28.3%
Sea Bas
$9.30
$34.50
17
$158.10
$586.50
27.0%
Beef Tenderloin
$8.40
$29.50
21
$176.40
$619.50
28.5%
Desserts
Portion Cost
Sales Price
Covers
Food Cost
Revenue
Food Cost%
Banana Brûlée
$2.80
$12.50
15
$42.00
$187.50
22.4%
Tiramisu
$3.25
$14.50
18
$58.50
$261.00
22.4%
Bavaroise
$1.85
$11.50
9
$16.65
$103.50
16.1%
Menu Totals
$43.10
$180.10
63
$775.45
$3,143.90
24.7%
Average Spend
$49.90
Daily food cost
To work out the daily food cost % from revenue the following formula is used Cost of food ÷ Revenue X 100
$775.45 ÷$3143.90 X 100 = 24.66 Round up to 24.70
Average customer spend.
We can work out on average how much each customer spend. Take the total revenue and divide it by the total covers
$3143.90 ÷ 63 = $49.90
Optimize Quality and Minimize Waste.
Food quality depends a lot on supply, and purchasing, and buying inferior quality food often results in
excess waste due to spoilage and trimming requirements. If a food driven business wishes to produce
quality food first, they must start with quality ingredients.
Yet having quality ingredients is only half of the equation.
From time-to-time kitchen employees will move on to new positions, and as such there will be a variance in
the structure of the kitchen, to combat this and they change that they bring, it is often wise to spot check
portion sizes and food quality.
Portion control is written into every standard recipe card: yet when people are under pressure, they often
take short cuts or not follow correct procedure. Often the first thing to be done away with in a commercial
kitchen come a hectic service period are the scales.
In an instant portions will change.
Minimize Risk of Theft, Damage, Or Loss
Of the main areas that food costs can fluctuate, the two most common are from improper stock management which leads to wastage, and through theft, either directly or indirectly.
To ensure that food is secure and that nothing goes missing through one means or another, it is important first to keep track of what is on hand, and what is coming in and out of the business.
Purchase orders, (written lists of what is ordered from a supplier) ensure that all goods ordered are
delivered, once the delivery arrives it is essential that the invoice is correctly checked off. If and
unscrupulous supplier was to deliberately over invoice, or under deliver it is possible that it could be
classed as a type of theft, also as goods are being paid for that are not being delivered, the direct
result would be a rise in food costs.
Secondly and inventory system to track stock levels is critical, often small items can go missing, and
unless you knew that they were in the kitchen, it is hard to know when they have gone, not only will
a n inventory list keep track of items movement in a kitchen, but it will also assist with stock control
and ordering.
Thirdly, staff need to be supervised, and access to storage areas, should be limited to persons only,
bags and other items should be stored away from food areas, as they offer scope for concealment
and food removal.
If a large operation is to control food security, a centrally located stores area may assist in keeping
loss to a minimum.
By each section of the kitchen requisitioning the items it requires, in relation to standard recipes quantities,
then the area of opportunity can be limited to a store area, and ultimately the onus can be put onto the
store manager to ensure that items are only dispatched to those who require them, purchase orders or
requisition sheets can be used to track such areas.
Other security features could include remote monitoring, i.e., camera equipment. Or security procedures and services supplied by and independent security agency.
End Of Section
You have reached the end of Section 3.
In this section you have covered the following topics.
How to itemise proposed components of dishes or food production items
How to calculate portion yields and costs from raw ingredients
How to assess the cost-effectiveness of proposed dishes or food production items and identify
ingredients that provide a high yield
How to price dishes to ensure maximum profitability
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