Converting Metric and U.S. Standard Weights

2. Converting Metric and U.S. Standard Weights • 1971—Department of Commerce recommended the U.S. convert to metric • 1975—President Ford signed into law the Metric Conversion Act • Today—90% of world nations use metric system © 2007 Thomson Delmar Learning. All Rights Reserved.

3. Metric System • A decimal system based on the number 10 • All measurements are multiples of 10 • Standard rules for amounts of units through the use of prefixes • Units of measure have specific names © 2007 Thomson Delmar Learning. All Rights Reserved.

4. Metric System • Prefixes • Example: • 1 meter = 10 decimeters = 100 centimeters = 1,000 millimeters • 1 decimeter = 0.1 meter • 1 centimeter = 0.01 meter • 1 millimeter = 0.001 meter © 2007 Thomson Delmar Learning. All Rights Reserved.

5. Metric System • Units of Measure • Meters represent length • Grams represent mass or weight • Liters or cubic meters represent volume • Degrees Celsius represent temperature © 2007 Thomson Delmar Learning. All Rights Reserved.

6. Converting Temperatures • Metric System • Celsius Scale • Water boils at 100°C and freezes at 0°C • U.S. Standard Measurements • Fahrenheit Scale • Water boils at 212°F and freezes at 32°F © 2007 Thomson Delmar Learning. All Rights Reserved.

7. Converting Temperatures • Degrees Celsius • Subtract 32 from the given Fahrenheit temperature and multiply the result by 5/9 or 0.56 • Degrees Fahrenheit • Multiply the Celsius temperature by 9/5 or 1.8 and add 32 to the result © 2007 Thomson Delmar Learning. All Rights Reserved.

8. Recipe Analysis • Purpose • To determine the related costs and sales contributions for each menu item • Raw cost • Contribution to profit • Sales history © 2007 Thomson Delmar Learning. All Rights Reserved.

9. Standardized Recipe • The use of a standardized recipe ensures: • Correct preparation • Consistent quality • Predictable yield • Predictable cost © 2007 Thomson Delmar Learning. All Rights Reserved.

10. Calculating Recipe Cost • From the unit cost/market price that is provided, calculate the extended price (extend 3 places) for each item of the recipe • Total the extended price column, round to nearest cent • Divide total by recipe yield to determine per serving cost © 2007 Thomson Delmar Learning. All Rights Reserved.

11. Calculating Quantities to Order • Purpose • Reduce inventories • Reduce waste due to spoilage and over-production © 2007 Thomson Delmar Learning. All Rights Reserved.

12. Prime Variable Costs • Calculating Food, Beverage, and Labor Costs • Fixed Cost • Known in advance • Expressed in dollars • Not affected by sales • Examples: rent, mortgage, bank loans, insurance, salaries, equipment rental or leases © 2007 Thomson Delmar Learning. All Rights Reserved.

13. Prime Variable Costs • Calculating Food, Beverage, and Labor Costs • Variable or Controllable Cost • Known in advance • Expressed as percentage of sales • Affected by sales • Examples: supplies, utilities, food, beverage, labor © 2007 Thomson Delmar Learning. All Rights Reserved.

14. Prime Variable Costs • Prime Costs • 15 to 30 percent food cost • 10 to 30 percent beer, wine and liquor cost • 15 to 30 percent labor cost © 2007 Thomson Delmar Learning. All Rights Reserved.

15. Food and Beverage Costs • Beginning Food Inventory + Food Purchases – Ending Food Inventory = Cost of Food • Total Food Cost (FC) = Food Cost % (FC%) Total Sales (S) © 2007 Thomson Delmar Learning. All Rights Reserved.

16. Labor Costs Total Labor Cost (LC) = Labor Cost %(LC%) Total Sales (S) © 2007 Thomson Delmar Learning. All Rights Reserved.

17. Production Management • Involves the following: • Accounting • Product development • Estimating • Procurement • Staffing and scheduling • Production efficiency © 2007 Thomson Delmar Learning. All Rights Reserved.

18. Production Management • Involves the following: • Waste management • Quality control • Storage • Distribution © 2007 Thomson Delmar Learning. All Rights Reserved.

19. Recipe Development(Product Development) • Must meet expectations of the customers • Must meet profitability demands of the operation • Must use ingredients in advantageous ways © 2007 Thomson Delmar Learning. All Rights Reserved.

20. Cross-Utilization • Affects many areas of kitchen operation: • Procurement • Inventory management • Cash flow • Food production © 2007 Thomson Delmar Learning. All Rights Reserved.

21. The Three C’s of Production Reports • Purposes: • Control • Recording all activity surrounding all prepared menu items • Communication • Giving direction to the staff as to how much food to prepare • Calculation • Determining the value of food sold and the expected profit © 2007 Thomson Delmar Learning. All Rights Reserved.

22. Calculating Quantities to Make • Sell the party on a cost-plus basis whereby food is constantly supplied as needed and a reasonable profit is added at the end over real costs • Make the customer responsible for all decisions regarding quantities of food © 2007 Thomson Delmar Learning. All Rights Reserved.

23. Estimating Hors d’Oeuvres • Information needed: • Length of party • Longer present, more food required • Time of day • Before a meal, need not be hearty, but during the meal hour, need to be substantial in quantity and portion • Makeup of the attendees • Males eat more than females, younger people more than older people © 2007 Thomson Delmar Learning. All Rights Reserved.

24. Converting Recipes • Increase Yield: • Divide the desired yield by the current yield to get a working factor • Multiply each ingredient amount in the recipe by the working factor © 2007 Thomson Delmar Learning. All Rights Reserved.

25. Converting Recipes • Decrease Yield • Write the desired yield over the current yield as a fraction • Find the least common denominator • Reduce the fraction to its lowest term to get a working factor • Multiply each ingredient amount in the recipe by the working factor © 2007 Thomson Delmar Learning. All Rights Reserved.

26. Menu Analysis • Purpose: • Recording the sales history of all menu items sold • Evaluating the item’s contribution to profit and customer appeal • Variables to Consider • Food cost percentage • Contribution margin • Goal value © 2007 Thomson Delmar Learning. All Rights Reserved.

27. Menu Analysis • Variables to Consider • Popularity • Selling price • Variable expense • Fixed expenses © 2007 Thomson Delmar Learning. All Rights Reserved.

28. Food Cost Percentage Cost of Menu Item= Food Cost Percentage Menu Selling Price © 2007 Thomson Delmar Learning. All Rights Reserved.

29. Contribution Margin Selling Price (SP) – Food Cost (FC) = Contribution Margin (CM) © 2007 Thomson Delmar Learning. All Rights Reserved.

30. Goal Value • Determined by multiplying a series of numbers together to reveal a score • Information needed: • Food cost percentage • Variable cost percentage • Selling price • Item popularity (actual number of portions sold for each item) © 2007 Thomson Delmar Learning. All Rights Reserved.

31. Goal Value • The values for each variable are represented by the following letters: • A = 1.00 – Food Cost Percentage • B = Item Popularity • C = Selling Price • D = 1.00 – (Variable Cost Percentage + Food Cost Percentage) A × B × C = Goal Value (GV) © 2007 Thomson Delmar Learning. All Rights Reserved.

32. Pricing the Event • Methods • Cost-Based Pricing • Most detailed and time-consuming, but most accurate • Calculate all actual costs, then add predetermined markup to arrive at sales price • Multiplier-Based Pricing • Divide 100% by desired food cost percentage to reveal multiplier • Multiply all raw costs by the multiplier to arrive at selling cost © 2007 Thomson Delmar Learning. All Rights Reserved.

33. Pricing the Event • Methods • Competitive-Based Pricing • Determined by the price competitors are charging for similar goods and services • Client-Based Pricing • Determined by amount the customer (market) will bear © 2007 Thomson Delmar Learning. All Rights Reserved.