Expenses Of A Foodservice Operation

Slides:

Advertisements

Similar presentations

Kitchen Calculations.

Advertisements

Yield Tests Many of the products we use today are not 100% usable.

Using Standardized Recipes to Determine Standard Portion Cost

Recipes A recipe is a formula by which measured ingredients are combined in a specific procedure to give predetermined results Format should be consistent,

The Ingredient Process

Costs of a Food service Operation. Expenses Labor Total cost of labor employed in the establishment.

Chapter 6 Food Production Control: Portions

Food Cost Controlling Foodservice Costs.

Section 13.1 Standardized Recipe Basics

Food and Beverage Management

Y2.U3.2 Controlling Food Cost.

Calculating Food Costs

Food Cost Food Cost Percentages. Determines if menu price and costs for each item are in line Can be figured two ways Percentage = food cost menu price.

DETERMINING SALES FORECASTS

How much should I buy?.  If we have less than needed?  Disappointed customers  Loss of customers  If we have more than needed?  Storage cost  Deterioration.

Agenda Questions regarding Chapter 2 & 3 workbook

Agenda Review Menu Engineering Chapter 7 Sample problems.

Standardized Recipes Are Critical

Chapter 5: The Yield Test.

Value Revisited Reducing Costs Describe the concept of value and its dimensions. Understand the relationship among AP price, EP cost and value. Cost.

Chapter 6 Food Production Control: Portions

Chapter 14 Menus & pricing.

Kitchen Economics 101 Prepared by the ProStart Team

Controlling Costs; The processes…. Gilbert Noussitou 2006 L3-1.

CHAPTER 3 COST CONTROL What is revenue? (147) The income from sales before expenses.

Recipe Math Flash. Blank next Conversion factor (CF)= 1.

Selling. Markup Based on Cost Cost The amount paid by a business to the manufacturer or supplier after trade discounts and other discounts have been.

Chapter 6 Managing Food and Beverage Pricing

Menu Pricing reflect the overall cost of running the operation These prices the costs needed to purchase, prepare and service it as well as labor rent.

Costs of a Food service Operation. Expenses Labor Total cost of labor employed in the establishment.

OH 5-1 Controlling Food Costs in Purchasing and Receiving 5 OH 5-1.

Copyright © 2006 by John Wiley & Sons, Inc. All rights reserved Food Production Control: Portions.

America’s Biggest Rip Offs Are there any items that you buy or that you can think of that seem really inexpensive to make but priced very high? What are.

Calculations and Controls for the Garde Manger © 2007 Thomson Delmar Learning. All Rights Reserved. Chapter 2.

UNITS AND RECIPE COSTING. OBJECTIVES The student will be able to: Understand how to calculate unit cost Understand and use typical invoices Understand.

Copyright ©2011 by Pearson Education, Inc. publishing as Pearson [imprint] On Cooking: A Textbook of Culinary Fundamentals, 5e Labensky Hause Martel ”

PRICING EVENTS KEYS TO MAXIMIZING PROFIT. BASIC PRICING FORMULA PRICE= OVERHEAD OVERHEAD+MATERIALS+LABOR+PROFIT PRICE= O+M+L+P.

1 FRMCA Level 1, Chapter 4 Kitchen Essentials: Part 1— Professionalism and Standardized Recipes 2013 Summer Institutes Level 1.

Chapter 7: Recipe Costing.

Standardized Recipes. What is it? Must follow a format that is clear to anyone who uses it. – Control of costs – Quality – Consistency of product.

Goal 4.03: Calculate prices of menus for a culinary business.

Foundations Chapter 4 ProStart Level 1

As Purchased and Edible Portion

1 FRMCA Level 2, Chapter 3 Cost Control 2015 Summer Institutes Level 3.

4.02 All about the MONEY!. Costs Two Questions: How much money will it cost to start a business? Where will it come from? What are costs? How much money.

© Copyright 2011 by the National Restaurant Association Educational Foundation (NRAEF) and published by Pearson Education, Inc. All rights reserved. Chapter.

Chapter 4 “Foundations of Restaurant Management and Culinary Arts”

Chapter 3 Cost Control.

Notes on Calculating Food Costs for Recipes

Chapter 3 Cost Control.

As Purchased and Edible Portion

Using Standardized Recipes to Determine Standard Portion Cost

Chapter 5: The Yield Test.

Controlling Costs; The processes…. Gilbert Noussitou 2006.

Sarah R. Labensky, CCP Alan M. Hause Priscilla A. Martel.

As Purchased vs. Edible Portion

Controlling food costs

Steps in Monitoring Food-Service Costs 3.2

Standardized Recipes and Cost Control

Costs of a Food service Operation

Foundations Chapter 4 ProStart Level 1

Chapter 3 Cost Control.

Chapter 3 Cost Control.

Revenue - Expenses = Profit

Standardizing Recipes, Food Production, and Cost Control

Financial Management Budget = financial plan used to forecast needs, allocate resources, and track progress set goals and objectives record what is accomplished.

Presentation transcript:

Expenses Of A Foodservice Operation Costing of Sales Food Cost

Expenses Labor Total cost of labor employed in the establishment. Kitchen Waitstaff Busboys Maintenance Hosts Management

Expenses Overhead Controllable Expenses Non Controllable Expenses Food, Labor, Supplies Non Controllable Expenses Rent, Utilities, Advertising, Insurance

Expenses Food Cost To control Food cost, standards must be implemented Quality Quantity Portion size Yield

Food Cost % Expressed as a percentage Cost of food divided by sales price Cost of food = $2.00 Sales Price = $6.00 Food cost = 33%

Information Included in Costing a Recipe Extended cost Q Factor Total recipe cost Portion cost Selling Price Food Cost % Recipe Yield Portions per recipe Portion size Ingredient Ingredient Unit Quantity of Unit Cost per Unit

Formulas to know EP = AP – Waste Yield % = EP/AP AP = EP/Yield % ___________________________ Food Cost % = Portion Cost/Selling Price Selling Price = Portion Cost/Desired Food Cost % Portion Cost = Recipe Cost/# of Portions in Yield Waste % = Waste/Total Starting Weight EP % = EP/Total Starting Weight

AP Product As Purchased The size or portion that the ingredient is purchased Ex- lb, box, bag, case

EP Edible Product amount of the recipe As Purchased minus waste = EP Edible percentage… EP divided by Total starting weight

Waste Percentage Calculated by total waste of product divided by starting or total weight or volume. Conducting a Yield Test will calculate both the waste percentage and the yield percentage for all products

How to Determine Sales Price Direct competition Labor intensity Demand (popularity) Desired food cost %

Determining Food Cost % by Desired Selling Price Recipe Cost/Selling Price Example: Recipe costs $2.49 to make Comparing similar items at direct competitors, desired sales price is $9.95 What is our Food Cost % for this item? 2.49/9.95 = ?

Determining Selling Price by Desired Food Cost % Recipe Cost/Desired Food Cost % Chicken Parmesan costs $2.00 to make. Your desired food cost % is 30%. How much should you sell this for? $2.00 / .30 = ?