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# Anchor Your Budget - PowerPoint PPT Presentation

Anchor Your Budget. Dr. Mary Kay Meyer Alabama School Nutrition Association. Alabama CNP “Money” Pie. Food 30-34%. Other 20-28%. Labor 42-46% . Recipe Cost. Recipe Cost. Plate Cost. Chicken B.B.Q. Sandwich .18 (commodity diced chicken) Baked Beans .14

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Presentation Transcript

Dr. Mary Kay Meyer

Alabama School Nutrition Association

Alabama CNP “Money” Pie

Food 30-34%

Other 20-28%

Labor 42-46%

Plate Cost
• Chicken B.B.Q. Sandwich .18 (commodity diced chicken)
• Baked Beans .14
• Apple Slaw .25
• Fresh Banana .21
• Chocolate Milk .23
• TOTAL 1.01
Food Cost
• Cost of purchased food ÷ Total meal equivalents = Food cost
Cost of Purchased Food

Beginning Food Inventory

+ Food Purchases

_____________________

= Food Available

- Ending Inventory

= Cost of Purchased Food Used

Meal Equivalents
• Meal Equivalents (MEQ) is the rate used to compare the amount of labor needed to prepare breakfast, snack, or a la carte with the labor needed to prepare one lunch.
• 1 lunch = 1 meal equivalent
• 3 breakfasts = 2 meal equivalent
• 3 snacks = 1 meal equivalent
• \$3.00 a la carte = 1 meal equivalent
Meal Equivalents
• Lunches + (Breakfast x .66)+ (Snacks ÷ 3) + (A la carte dollars ÷ 3) = MEQ
Meal Equivalents
• 80 breakfasts
• 60 snacks
• \$270 a la carte
• 200 lunches
• Total
• 53 MEQ
• 20 MEQ
• 90 MEQ
• 200 MEQ
• 363 MEQ
Food Cost Per Meal

Cost of Purchased Food Used = \$2700

Meal equivalents = 3000

Food Cost Per Meal = .90

Meals Per Labor Hour

Current meal equivalents

÷ Total Labor Hours Worked = MPLH

Labor Hours
• Manager 6 hours day
• 1 staff 5 hours day
• 1staff 4 hours day
• Total = 15 hours day
Meals Per Labor Hour
• 363 MEQ ÷ 15 hours =
• 24
Alabama Productivity Standards
• 16-19 meals per labor hour
What Happens to MPLH When…
• Participation increases?
• Total hours worked decreases?
• A la carte sales increase?
Food Cost Percentage

Cost of Food÷ Total Revenue x 100 = Food Cost %

Food Cost Percentage
• Cost of Food =\$70,000
• Revenue = \$200,000
• Food Cost % = 35
Food Cost Percentage
• The percentage of total expenditures spent on food
• Alabama standard 30-34%
Labor Cost Percentage

Labor cost ÷ Total Revenue x 100 = Labor Cost %

Labor Cost Percentage

Labor cost = \$90,000

Total Revenue = \$200,000

Labor Cost % = 45

Labor Cost Percentage
• The percentage of total expenditures spent on labor
• Alabama standard is 42-46%