Using standardized recipes to determine standard portion cost
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Using Standardized Recipes to Determine Standard Portion Cost. Controlling Foodservice Costs. 3. OH 3- 1. Chapter Learning Objectives. Explain why a standardized recipe is important for cost control and product consistency. Describe information included in a standardized recipe.

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Using standardized recipes to determine standard portion cost l.jpg
Using Standardized Recipes to Determine Standard Portion Cost

  • Controlling Foodservice Costs

3

OH 3-1


Chapter learning objectives l.jpg
Chapter Learning Objectives Cost

  • Explain why a standardized recipe is important for cost control and product consistency.

  • Describe information included in a standardized recipe.

  • Compare “as purchased” and “edible portion” methods in determining the cost of recipe ingredients.

  • Develop a recipe cost card using a standardized recipe.


Standardized recipes ensure consistency in l.jpg
Standardized Recipes CostEnsure Consistency In

  • Ingredient quality

  • Preparation method

  • Portion size

  • Service method


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Standardized Recipes Identify Cost

  • Ingredient details (quality)

  • Ingredient weights and measures

  • Necessary equipment and tools

  • Volume (number) of portions


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Standardized Recipes also Include Cost

  • Preparation time

  • Storage and preparation information

  • Cooking method(s)



Standardized recipes l.jpg
Standardized Recipes Cost

  • Allow for accurate purchasing

  • Help ensure compliance with “Truth In Menu” laws

  • Assists in training new employees

  • Makes it possible to “cost” the recipe accurately


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Recipe Ingredient Costing Alternatives Cost

  • As Purchased (AP) method

    • Price of an item before any trim or waste are considered

    • Example—unpeeled, whole potatoes

  • Edible Portion (EP) method

    • Price of an item after all trim and waste has been taken into account

    • Example—peeled, cubed potatoes


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AP and EP Cost

  • As Purchased (AP) refers to products as the restaurant receives them.

  • Edible Portion (EP) refers to products as the guests receive them.



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Determine if recipe ingredients are listed in AP or EP formats.

Apply the correct costing method to the ingredients.

Use the information to price menu items.

Periodically re-cost recipe ingredients.

Managers Must


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EP Amounts formats.

  • Because many food items shrink when they are cooked, managers must know exactly how much cooking loss to expect.


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Ways to Estimate Yields formats.

  • Butcher’s tests

    • To measure loss from deboning, trimming, and portioning meats, fish, and poultry

  • Cooking loss tests

    • To measure loss from the actual cooking process

  • Conversion charts

    • Tell the expected or average loss of an item from (AP) to (EP)


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Creating Recipe Cost Cards formats.

Step 1 – Copy the ingredients from the standardized recipe card to the cost card.

Step 2 – List the amount of each ingredient used.

Step 3 – Indicate the cost of each ingredient as listed on the invoice.


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Creating Recipe Cost Cards formats.continued

Step 4 – Convert the cost of the invoice unit to the cost of the recipe unit.

Example

  • Milk purchased by the gallon for $2.80

  • Yields eight recipe-ready (EP) pints at $0.35 each.($2.80 ÷ 8 pints = $0.35 per pint)


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Creating Recipe Cost Cards formats.continued

Step 5 – Multiply the recipe unit cost by the amount required in the recipe.

Example

  • Recipe amount required—3 pints

  • Cost per pint—$0.35

  • Ingredient cost—$1.05(3 pints x $0.35 per pint = $1.05)


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Creating Recipe Cost Cards formats.continued

Step 6 – Add the cost of all ingredients.


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Creating Recipe Cost Cards formats.continued

Step 7 – Divide the total recipe cost by the number of portions produced.

Example

  • Total recipe cost—$145.50

  • Total recipe yield—50 portions

  • Cost per portion—$2.91($145.50 ÷ 50 portions = $2.91 per portion)


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How Would You Answer formats.the Following Questions?

  • The cost of most AP food products is higher than their EP cost. (True/False)

  • Which of the following is NOT true about recipe cost cards?

    • They help establish menu selling prices.

    • They reduce food production time.

    • There should be one for every menu item.

    • They inform managers about how much it costs to make a single portion of an item.

  • Software programs designed to help foodservice managers create recipe cost cards are readily available. (True/False)


  • Key term review l.jpg
    Key Term Review formats.

    • As purchased (AP) method

    • Butcher test

    • Conversion chart

    • Cooking loss test

    • Edible portion (EP) method


    Key term review21 l.jpg
    Key Term Review formats.

    • Portion size

    • Recipe cost card

    • Shrinkage

    • Standard portion cost

    • Standardized recipe


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    Chapter Learning Objectives— formats.What Did You Learn?

    • Explain why a standardized recipe is important for cost control and product consistency.

    • Describe the information included in a standardized recipe.

    • Compare “as purchased” and “edible portion” methods in determining the cost of recipe ingredients.

    • Develop a recipe cost card using a standardized recipe.