OH 3-2 Using Standardized Recipes to Determine Standard Portion Cost Controlling Foodservice Costs 3 OH 3-2
OH 3-3 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.
OH 3-4 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
OH 3-5 What Difference Does It Make??? Mexi Beef Casserole Difference in Cost Cost/serving with 35l bCost/serving with 40 lbPer 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 Mexi Beef Casserole: 35lb ground beef for 200 people 25 - 5 x 5 portions per ½ steam table pan.
OH 3-6 What Difference Does It Make??? What if the pan was cut 4 x 5? Servings per panCost 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
OH 3-7 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
OH 3-8 What Difference Does It Make??? Nutrient Facts25 servings per pan20 servings per pan Serving size6.5 oz8.1 oz Calories255318 Protein12.7 g15.9 g Carbohydrate22.5 g28.2 g Total Fat12.5 g15.6 g Saturated Fat5.0 g6.2 g Cholesterol44.0 g55.0 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.
OH 3-9 Standardized Recipes Identify Recipe Title Ingredient details (quality) Ingredient weights and measures Necessary equipment and tools Volume (number) of portions (Recipe Yield)
OH 3-10 Standardized Recipes also Include Preparation time Storage and preparation information Cooking method(s)
OH 3-11 Sample Standardized Recipe
OH 3-12 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
OH 3-13 Recipe Ingredient Costing Alternatives As Purchased (AP) method Price of an item before any trim or waste are considered Exampleunpeeled, whole potatoes Edible Portion (EP) method Price of an item after all trim and waste has been taken into account Examplepeeled, cubed potatoes
OH 3-14 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.
OH 3-15 Comparison of AP and EP Weights
OH 3-16 Managers Must 1. Determine if recipe ingredients are listed in AP or EP formats. 2. Apply the correct costing method to the ingredients. 3. Use the information to price menu items. 4. Periodically re-cost recipe ingredients.
OH 3-17 EP Amounts Because many food items shrink when they are cooked, managers must know exactly how much cooking loss to expect.
OH 3-18 Ways to Estimate Yields Butchers 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)
OH 3-19 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.
OH 3-20 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)
OH 3-21 Creating Recipe Cost Cards continued Step 5 – Multiply the recipe unit cost by the amount required in the recipe. Example Recipe amount required3 pints Cost per pint$0.35 Ingredient cost$1.05 (3 pints x $0.35 per pint = $1.05)
OH 3-22 Creating Recipe Cost Cards continued Step 6 – Add the cost of all ingredients.
OH 3-23 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 yield50 portions Cost per portion$2.91 ($145.50 ÷ 50 portions = $2.91 per portion)
OH 3-24 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
OH 3-25 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 recipes cost by increasing the total cost by the spice factor percent - mulitplying by spice factor Recipe Cost x (1 + Spice Factor)
OH 3-26 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 =.0333 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 (1 +.0333) = $55.54
OH 3-27 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
OH 3-28 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
OH 3-29 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?
OH 3-30 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 1.0333 = $55.54 recipe cost with spice factor Cost per portion: $55.54/12 = $4.63 Add Q factor: $4.63 + $2.07 = $6.70 cost of entree
OH 3-31 How Would You Answer the Following Questions? 1. The cost of most AP food products is higher than their EP cost. ( True/False ) 2. Which of the following is NOT true about recipe cost cards? A. They help establish menu selling prices. B. They reduce food production time. C. There should be one for every menu item. D. They inform managers about how much it costs to make a single portion of an item. 3. Software programs designed to help foodservice managers create recipe cost cards are readily available. ( True/False )
OH 3-32 Key Term Review As purchased (AP) method Butcher test Conversion chart Cooking loss test Edible portion (EP) method
OH 3-33 Key Term Review Portion size Recipe cost card Shrinkage Standard portion cost Standardized recipe
OH 3-34 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. Chapter Learning Objectives What Did You Learn?