CONTROLS IN FOOD PRODUCTION. PRODUCTION SCHEDULES STANDARD RECIPES PORTION CONTROL YIELD % AND FACTORS OVER- AND UNDERPRODUCTION DAILY vs. TO-DATE COGS POTENTIAL SAVINGS. PRODUCTION. Management’s job regarding production mirrors its job in every other aspect of the operation:
Management’s job regarding production mirrors its job in every other aspect of the operation:
Set the standards
Reconcile any differences
What must be prepped for the upcoming shift?
Popularity Index = $Item Sales/$Total Sales
$Projected Sales = $Total Sales Forecast x Popularity Index
Determine what you must add to inventory to be ready:
Par Stocks – Inventory = Prep List
-Consistent taste and quality
-Facilitates cost/price adjustments as market prices fluctuate
STANDARD PORTION SIZE
-Various ways to standardize portions:
-Volume: scoops, ladles, individual containers
-Count: one each, two each, etc.
-Weight: pre-portioned steaks, burgers, etc.
STANDARD PORTION COSTS
Standard Portion Cost = Purchase Price Per Unit / Portions per Unit
Product mix may need revision
Portions too large
Failure to follow recipe
How were extras produced?
Portions too small
Can excess be reussed?
Allocate waste to responsible
Meat is usually the highest priced item on the menu.
Make vs. Buy Decision
Use of By-Products
Value of Usable Bi Products$20.23
Prime Rib Cost
Prime Rib Wt.17# 8oz.
Prime Rib $/#$15.98
Trimmed Price$15.98 = 1.6 Multiplier
Original Pur. Price $10.00
As prices change, the multiplier is used in the Make vs. Buy decision.
Whole Chicken Prices:Breast Prices:
$1.19$1.19 x 1.46 = $1.74
$1.39$1.39 x 1.46 = $2.03
If whole chickens are selling for $1.39, and pre-cut breasts are selling for $2.03, pre-cut may be the better buy.
Doesn’t account for fluctuations in the whole product (i.e. breast size vs. total bird)
Prices of usable bi-products may vary
All bi-products are written off to the main item.
Legs, thighs, wings, etc. are valued at $.00.
Drives up the cost of the main item.
Dramatically reduces cost of any dish made
Across the full-menu, COGS will even out.
Divide the “after cooking” price per pound by the original price to determine the multiplier.
Original Wt. 15 pounds
Prime Rib per pound$15.00
After Cooking Wt. 12 pounds
New Cost per Pound $18.75
Used to establish menu prices
Used to determine purchase quantity
Used to forecast sales
Used to provide consistent customer satisfaction
Operations that use high tech POS systems tied into Perpetual Inventory systems can look at COGS by hour, shift and day.
short timeframes & low volume = great fluctuation
This should be used in conjunction with a “moving COG” that adds in prior periods.
longer timeframe & larger volume = consistent figures