1. Review Quiz 1 Chapter 3 Homework Quiz
Agenda
Review Quiz 1
Chapter 3
Homework Quiz

2. Using Standardized Recipes to Determine Standard Portion Cost3
Controlling Foodservice Costs
OH 3-2

3. Chapter Learning Objectives
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.
Instructor’s Notes
Indicate that these objectives (competencies) drive the information in the chapter and in this session.
Ask he following questions, “How important is ‘consistency’ to you when you are personally selecting a restaurant?” “Who is most responsible for ensuring product and service consistency in a restaurant?”
Review Questions on page 28.

4. Benefits of Standardized Recipes
Consistency in Food Quality
Customer satisfaction
Predictable Yields
Preparation method consistent
Standard portion sizes (weight, volume or count)
Service method consistency
Food Cost Control
Instructor’s Notes
Remind students that inconsistent food can be one of a restaurant’s greatest
problems, and the consistent use of standardized recipes helps to eliminate that problem.
Ask students to suggest what information should be listed on a
standardized recipe.

5. What Difference Does It Make???
Mexi Beef Casserole: 35lb ground beef for 200 people x 5 portions per ½ steam table pan.
Mexi Beef Casserole
Difference in Cost
Cost/serving with 35l b
Cost/serving with 40 lb
Per Serving
$0.76
$0.85
+$0.09
Not a big deal right?
Annual impact for 3 times per week
$0.09 per serving x 200 servings x 156 = $2,808
For example, my recipe for Mexi Beef Casserole calls for 35 lb of ground beef
to make 200 servings. The Mexi Beef Casserole recipe is specified to serve
25 portions per pan by cutting a half steam table pan 5 x 5.
If my chef uses 40 lb of ground beef (four 10-lb packages),
the cost per portion increases significantly because 5 additional pounds of meat were used.
Impact annually if this was done 3 times per week = $2,808

6. What Difference Does It Make???
What if the pan was cut 4 x 5?
Servings per pan
Cost per serving
20 servings
$0.95
25 servings
$0.76
Difference
$0.19
Annual impact for 3 times per week
$0.19 per serving x 200 servings x 156 = $5,928

7. Benefits of Standardized Recipes
Accurate Purchasing
Quantities defined and controlled
Helps ensure compliance with “Truth In Menu” laws
Consistent nutrient content
Identification of food alergens
Assists in training new employees

8. What Difference Does It Make???
Nutrient Facts
25 servings per pan
20 servings per pan
Serving size
6.5 oz
8.1 oz
Calories
255
318
Protein
12.7 g
15.9 g
Carbohydrate
22.5 g
28.2 g
Total Fat
12.5 g
15.6 g
Saturated Fat
5.0 g
6.2 g
Cholesterol
44.0 g
55.0 g
U. S. Department of Agriculture, Food and Nutrition Service, with the National Food Service Management Institute. (2002). Measuring
success with standardized recipes. University, MS: National Food Service Management Institute.

9. Standardized Recipes Identify
Recipe Title
Ingredient details (quality)
Ingredient weights and measures
Necessary equipment and tools
Volume (number) of portions (Recipe Yield)
Instructor’s Notes
Explain the difference between a recipe’s stated volume (i.e., makes six quarts, yields ten pounds) and the number of portions the recipe will actually produce.

10. Standardized Recipes also Include
Preparation time
Storage and preparation information
Cooking method(s)
Instructor’s Notes
Ask why chefs are sometimes hesitant to standardize their personally developed recipes.
Explain that few recipes state the total time required to make the recipe because the skill level of food production workers varies greatly.
If time permits, ask students to write down a recipe of their own (in standardized format) that they can share.

11. Sample Standardized Recipe
Instructor’s Notes
Ask students to look for and identify each of the seven items listed on the previous two slides.

12. Recipe Standardization Process
Recipe verification
Prepare recipe, verify yields
Product evaluation
Recipe modification & quantity adjustments
Adjusting yields and/or ingredient amounts
Cost recipe based on final standardized recipe
Computerized programs do this as well costing, i.e. CBORD, Eatec, Recipe Manager, ChefTec
Benefits: no math skills required, can start with any recipe and after entered into computer can adjust to desired
yield, final recipe can yield any number of servings desired
Problems: expensive programs, labor to do initial build of data and to maintain data, accuracy if initial info or
maintenance info is inaccurate

13. Recipe Ingredient Costing Alternatives
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
Instructor’s Notes
Explain that recipe costing is only possible with standardized recipes.
Ask for examples of items typically purchased in AP and EP market forms.

14. AP and EP
As Purchased (AP) refers to products as the restaurant receives them.
Edible Portion (EP) refers to products as the guests receive them.
Instructor’s Notes
Indicate that most food products are delivered to a restaurant in their AP state.
Ask students for examples of products purchased in an EP form. Examples: milk, wine and beer, and baked goods such as bread and buns.

15. Comparison of AP and EP Weights
Instructor’s Notes
Ask if the AP price of an item can ever be lower than its EP price. (Answer: if an item has zero trim loss, AP price can equal EP price, but AP price can never be lower than EP price.)

16. Managers Must
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.
Instructor’s Notes
Explain to students that the use of specifications will have the effect of reducing variation in the price paid for an item (among various suppliers) because each vendor will be supplying exactly the same item.
Explain that changing food suppliers may change the EP cost of some ingredients purchased by the restaurant because of differences in the newly supplied products
Yield
Price

17. EP Amounts
Because many food items shrink when they are cooked, managers must know exactly how much cooking loss to expect.
Instructor’s Notes
Explain that, even if foods are purchased cleaned and trimmed, water loss in foods is the inevitable result of applying heat (cooking) so there will often be reductions in food volume.
Explain that a yield test is a method of calculating the loss related to cooking and trimming, peeling and cleaning.

18. Ways to Estimate Yields
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)
Instructor’s Notes
Explain that an AP product’s ultimate yield may vary based upon grade, age, storage techniques, and skill level of the cook preparing the food.
Discuss difference in terminology of shrinkage (how much loss) vs. yield (total left).
Show example of Roast Meat Chart for a cooking loss test.
Work example problem on page 32.

19. Creating Recipe Cost Cards
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.
Instructor’s Notes
Point out that creating recipe cost cards has seven steps.
Explain that for the first step, you must list all ingredients, including spices, in the form they are used in the recipe, i.e., pounds, tablespoons, ounces, cups, and quarts.
Ask for examples of items that are purchased in one unit, but used in recipes in another unit. Example: Black pepper is usually purchased by the pound or ounce, but is often added to recipes by the tablespoon or teaspoon.
Inform students that conversions must often be made from the cost of an AP unit to the cost of an EP unit.
Show KMS unit 7 – 1.

20. Creating Recipe Cost Cards 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) or
sixteen recipe-ready (EP) cups at $0.175 each ($2.80 ÷ 16 cups = $0.175 per cup)
Instructor’s Notes
Assure that students understand that there are eight pints to one gallon.

21. Creating Recipe Cost Cards 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)
Instructor’s Notes
Explain that the math skills required in this step are the same as those required for standardizing recipes and for taking physical inventories.

22. Creating Recipe Cost Cards continued
Step 6 – Add the cost of all ingredients.
Instructor’s Notes
Explain that, for some very low cost ingredients, like salt and minor spices, some managers estimate a fixed amount per recipe (i.e., one penny per portion or $0.25 per recipe) rather than listing the actual ingredient cost.

23. Creating Recipe Cost Cards 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—$2.91 ($ ÷ 50 portions = $2.91 per portion)
Instructor’s Notes
Remind students that recipe cards are used to determine portion costs.
Explain that all of the individual portion costs on a combination plate equal the plate cost.
Plate costs can include items such as entrée, vegetable, and starch, or even a full three or more course meal.
Explain that accurate portion or plate costs are needed to calculate a restaurant’s menu prices.
Walk through example on page 35.
Show KMS unit 7 – 2.
Do exercise on page 37.

24. Spice Factor
Can be used instead of costing out every spice, herb and seasoning
A way to account for “to taste” spices in a recipe
Spreads the cost of spices, herbs and seasonings over all menu items so those that require a larger quantity do not bear the entire cost of the spices
Can also include garnishes or “lost” items as a result of chef error

25. Spice Factor, continued
Determining a spice factor
Consider which items to include
Calculate the value of all selected items over a period of time
After the value is calculated determine the spice factor as follows:
Spice factor = Value of spice factor items (over time)
Value of total food purchases (over same time)
Adjust recipe’s cost by increasing the total cost by the spice factor percent - mulitplying by spice factor
Recipe Cost x (1 + Spice Factor)
Considerations should include: spices, herbs, seasonings, garnishes
Period of time should be long enough to get a good average of your menu items. If the selected items are also used as a primary ingredient in other recipes the use for just the garnish, spice etc must be calculated separately, i.e. if an orange slice is used as a garnish and also in an ambrosia salad the cost of the orange used for garnish alone is calculated for the spice factor.

26. Spice Factor, continued
Example:
If the spice factor items cost $2,000 for a six month period and the total food purchases over the same period of time are $60,000, what is the spice factor?
$2,000/$60,000 = or 3.33%
If the total recipe cost for Chicken Parmesan which serves 12 people is $53.75, what is the spice-factor adjusted recipe cost?
$53.75 x ( ) = $55.54
If used, the spice factor should be used for ALL recipes in the business, regardless of the use of spices, herbs or condiments.

27. Q Factor
A method to account for side dishes, add-ons or other freebies that come with entrée dishes.
Only factor for the entrées offered by the business
Determine cost of each of the side or add-on possibilities
Identify the most expensive options that could be selected
Add this cost to every entrée
Sides/ add-ons could include soup, salad, potatoes, desserts – whatever is specified by how the entrée is menued.
If the business offers a “side” to all customers it would make more sense to add it to the spice factor.
For example, if tortilla chips are offered to all customers upon seating – add this item to the spice factor.

28. Q Factor, continued Example:
A business offers entrées that include a choice of soup or salad, choice of vegetable or starch, bread and butter. What is the Q factor if the costs are:
Tomato soup $0.85
French onion soup $0.65
House salad $0.92
Caesar salad $1.35
Broccoli side $0.43
Carrot side $0.16
Green bean side $0.25
Smashed potato $0.53
Angel hair pasta $0.35
Bread $0.11
Butter $0.08
Calculate the most expensive of each option:
Caesar salad $1.35
Smashed potato $0.53
Bread $0.11
Butter $0.08
$2.07

29. Q Factor, continued
Q Factor of $2.07 should be added to all entrées for this business that offer the same add-ons
If a business uses both Spice Factor and Q Factor, the spice factor should only be added once for each entrée. Add the Q factor and then add the spice factor
So, for our Chicken Parmesan what is the cost per portion using both the Spice factor and the Q factor?

30. Spice Factor & Q Factor
Chicken Parmesan serving 12 people cost of recipe = $53.75
Spice Factor = 3.33%
Q Factor = $2.07
$53.75 x = $55.54 recipe cost with spice factor
Cost per portion: $55.54/12 = $4.63
Add Q factor: $ $2.07 = $6.70 cost of entree

31. How Would You Answer 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)
Instructor’s Notes
Answers
False B
True
Note: indicate that the last part of this discussion will provide a review of definitions for the key terms used in the chapter.
ALSO do Questions on page 39.

32. Key Term Review As purchased (AP) method Butcher test Conversion chart
Cooking loss test
Edible portion (EP) method
Instructor’s Notes
As purchased (AP) method—used to cost an ingredient at the purchase price prior to considering any trim or waste
Butcher test—used to measure the amount of shrinkage that occurs during the trimming of meat products
Conversion chart—list of food items showing the expected, or average, shrinkage from AP amount to EP amount
Cooking loss test—way to measure the amount of product shrinkage during the cooking or roasting process
Edible portion (EP) method—used to cost an ingredient after it has been trimmed and waste has been removed so that only the usable portion of the item is considered
Note that there are additional key terms for this chapter.

33. Key Term Review Portion size Recipe cost card Shrinkage
Standard portion cost
Standardized recipe
Instructor’s Notes
Portion size—size of a menu item
Recipe cost card—tool used to calculate standard portion cost for a menu item
Shrinkage—amount of loss incurred when a product is trimmed and cooked, roasted, or otherwise prepared for service
Standard portion cost—exact amount that one serving or portion of a food item should cost when prepared according to the item’s standardized recipe that has been pre-costed with current purchase cost
Standardized recipe—lists the ingredients and quantities needed for a menu item, as well as the methods used to produce it and its portion size

34. Chapter Learning Objectives— 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.
Instructor’s Notes
Ask students to do a personal assessment of the extent to which they know the information or can perform the activity noted in each objective.