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# Costs of a Food service Operation - PowerPoint PPT Presentation

Costs of a Food service Operation. Expenses. Labor Total cost of labor employed in the establishment. Expenses. Overhead Controllable Expenses Food, Labor, Supplies Non Controllable Expenses Rent, Utilities, Advertising, Insurance. Expenses. Food Cost

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## PowerPoint Slideshow about 'Costs of a Food service Operation' - rozene

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### Costs of a Food service Operation

• Labor

• Total cost of labor employed in the establishment.

• Controllable Expenses

• Food, Labor, Supplies

• Non Controllable Expenses

• Food Cost

• To control Food cost, standards must be implemented

• Quality

• Quantity

• Portion size

• Yield

• The most important standards are the recipes

Recipe Name

ID number

Portion Size

Yield

Ingredients

Waste %

Edible Product

As Purchased

Conversion Measure

Ingredient cost

Subtotal cost

Q Factor

Total Cost

Food cost %

• The number of servings that one preparation of the recipe produces.

• Portions are needed to determine the portion cost

• For Example

• Recipe Cost = 12.90

• Portions = 10

• 12.90 / 10 = \$1.29 portion cost

• A Recipe for Chicken Pot Pie makes 10 cups. A portion in considered 1 cup.

• How many portions are there?

• 10 / 1 = 10

• Recipe Yield 2 gallons

• Serving size 8 oz

• How many Portions are there?

• EP/AP = Yield %

• Edible Portion / As Purchased = Yield %

• You can find yield % by performing a cut test.

• A 50# Bag of carrots is purchased

• After Peeling and dicing, 45# remains

• What is the Yield %?

• 45/50 = 90%

• Whole carrots cost \$1.00 per pound. How much do peeled carrots cost?

• Take the original cost and divide by yield % to get the true cost.

• 1.00 / .90 = \$1.11/lb

• Red snapper has a yield of 30%. Red Snapper fillets cost \$12.99/lb and the whole fish cost 3.50/lb.

• How should you purchase your snapper?

• Ep/ap = yield%

• Ap = ep/yield %

• A recipe calls for 5 lbs of diced pumpkin. Pumpkin has a yield of 60%. How much should you buy?

• 5 / .60 = 8.33 lbs

• You have a banquet for 100 people. They will be eating roast beef and each guest will be an ½ lb or 8 oz portion. The only issue is, when you roast the beef, it shrinks 20% which means the yield is 80%. How much beef should you purchase?

• Expressed as a percentage

• Cost of food / sales price

Cost of food = \$2.00

Sales Price = \$6.00

Food cost = 33%

• Chicken Parm \$9.99

• 8 oz chicken breast 1.50

• 2 oz sauce .25

• 1 slice cheese .40

• 12 oz pasta .55

• Fresh basil (garnish) .05

What is the food cost???

• BLT

• 2 pieces of bread .15

• Bacon .60

• Lettuce .25

• Tomato .25

• You would like a 30% food cost, how much can you sell the BLT for?

• Desired food cost %

• Direct competition

• Labor intensity

• Demand (popularity)

• YIELD % = EP / AP

• EP = Starting weight – waste

• AP = EP/Yield %

• Food cost % = cost of product / sales price

• Portion Cost = Total Cost of Recipe / servings

• Clam Chowder costs \$22.00 per gallon to make.

• There are 16 servings at 8 oz per serving.

• What is the cost of 1 serving?

• Standardize your recipes – put them in easy to use formats

• Using the price sheet, fill out recipe cost form for all 6 recipes to determine sales price