Agenda Chapter 7 – Asch & Chapter 3 – ManageFirst Workbook Chapter 7 Asch Review for Test 1 Next week

Using Standardized Recipes to Determine Standard Portion Cost 3 Asch Chapter 7: Controls in Food Production OH 3-2

Chapter Learning Objectives Understand the need and usage of a production schedule 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 the 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?”

Chapter Learning Objectives Understand the need and usage of a standard portion size including: Volume, Count & Weight Calculate standard portion cost Understand the concept of yield factor/percent Complete a butcher’s yield & cooking loss test Calculate daily & to date food costs Understand the concept of potential savings Instructor’s Notes Indicate that these objectives (competencies) drive the information in the chapter and in this session. Ask the 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?”

Food Production Schedule What is a production schedule? Who prepares the production schedule? When is it used? What should be included? Example Production Sheet What is a production schedule? List of items to be prepared Who prepares the production schedule? Manager, ex chef When is it used? Every day, every shift, every area What should be included? Date, Day of week, weather, number of customers forecast, Recipe number Recipe name Popularity index Portion size Portion cost Number of servings to be produced Number of servings prepared Number of servings left

Standardized Recipes Ensure Consistency In Ingredient quality Preparation method Portion size Volume Count Weight Service method 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.

Standardized Recipes Identify Ingredient details (quality) Ingredient weights and measures Necessary equipment and tools Volume (number) of portions 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.

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.

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

Standardized Recipes 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 Instructor’s Notes Explain that guests, especially those with dietary concerns, often want to know about ingredients used in a recipe, and use of standardized recipes can yield this information. Point out that computerization of the recipe costing process is impossible without standardized recipes.

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.

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.

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.)

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

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.

Ways to Estimate Yields Butcher’s tests To measure loss from deboning, trimming, and portioning meats, fish, and poultry Total cost approach Absorb the cost of the entire cost of the meat product in the preparation of the menu item. 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.

Butcher Test Also known as “yield test” Used to determine EP meat costs Results vary, based upon the AP quality of meat purchased Measures losses from Fat removal Bone removal Trim and packaging removal Portioning Instructor’s Notes Explain that, in some restaurant segments, the increased use of convenience foods has reduced the need for conducting butcher tests. Ask students to identify the types of restaurants that likely still utilize butcher tests. Before moving to the next section, ask students if they have any questions about the information discussed about purchasing. State, “The next section discusses the processes a restaurant uses in receiving the items it ordered.”

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

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) Instructor’s Notes Assure that students understand that there are eight pints to one gallon.

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.

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.

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 ($145.50 ÷ 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.

The Major Cost Control Device in Serving Portion Control! Overportioning results in the restaurant’s owners being treated unfairly. Underportioning results in the restaurant’s guests being treated unfairly. Instructor’s Notes Explain that another problem related to portion control is the guest’s perception of consistency (large servings sometimes, but smaller servings another time). Ask students if they have ever ordered a menu item the first time, liked it, and returned to buy it again only to find the portion served the second time was a different size.

The Cost of Overportioning Item: Corn Cost = $2.80 per 3 lb box Portions per Box Portion Size in Ounces Portion Cost in Cents 16 3.0 oz = the standard $0.175 If 14 3.4 oz $0.20 If 13 3.7 oz $0.215 Instructor’s Notes Point out that small amounts of overportioning can add up quickly. Explain that, with a 3-ounce standard portion size that should cost $0.175 (17.5 cents), overportioning just 0.7 ounces per serving (13 servings example) raises food cost by 23%. ($0.215 - $0.175) ÷ $0.175 = 23%.

Preportioned Items Some menu items come already portioned. 2 oz hot dogs Precut steaks Rib “slabs” Half-pound frozen hamburger patties Bananas Carton or bottled beverages Instructor’s Notes Explain that, when an item is not preportioned, managers must ensure that guests get what they pay for while the restaurant protects its profits. Both of these goals are accomplished through proper portion control. Ask, “Who does the majority of portioning, cooks or servers?” Ask for examples of when servers play a major role in portion control.

Items Not Preportioned Items that are not preportioned must be carefully portioned. To control costs To ensure consistency To ensure a positive price-value relationship in each guest’s mind To avoid running out of a product Instructor’s Notes Ask students to identify some tools used in a kitchen to help in the portioning process.

Portion Control Tools Scoops Also known as dishers Used to portion fluid ounces and semisolid products Instructor’s Notes Point out that scoops are used for foods like cottage cheese, ice cream, and tuna salad. Explain that these devices are based upon the number of level servings per quart (32 ounces). Therefore, a “Number 10 scoop,” means it will yield ten-3.2 ounce servings (scoops) per quart. Point out that ladles are used for liquids such as soups, sauces, and dressings. Tell students that the capacity of a ladle is usually stamped on the handle.

Portion Control Tools continued Ladles Used to portion liquids Instructor’s Notes Point out that ladles are used for liquids such as soups, sauces, and dressings. Tell students that the capacity of a ladle is usually stamped on the handle or that the handle might be color-coded to designate size.

Portion Control Tools continued Serving spoons Slotted—used to separate solids from liquids Solid—used to serve solids and liquids Instructor’s Notes Point out that a slightly rounded serving spoonful is about four ounces of product.

Portion Control Dishware Ramekins Used for small amounts of sauces and salad dressings Individual casseroles Typically round or oval oven-proof dishes Range in size from five to twelve ounces Instructor’s Notes Point out that ramekins may be made of stainless steel, ceramics, or disposable plastics. Ask students how they have seen ramekins used. Individual casseroles are often used for broiled items because these dishes can tolerate high heat levels.

Portion Control Dishware continued Cups Typically hold four to six ounces Bowls Typically hold six to ten ounces Instructor’s Notes Point out a regular “coffee” cup holds a different amount (usually two to three ounces less) than an eight-ounce measuring cup.

Portion Scales Are used for items portioned by weight Must be kept very clean Can be adjusted to subtract the weight of the container holding the product Are designed to weigh items as heavy as thirty- two ounces Instructor’s Notes Ask students to identify some items that are portioned on scales. Answers will include meats, fish portions, cold cuts, and cheeses. Point out that “tare” weight is the weight of the container holding the item. This tare weight is subtracted to arrive at the item’s actual or net weight.

Preportioning Preportioning items prior to the start of a meal period Ensures consistency Reduces errors in portion sizes Speeds production times Instructor’s Notes Ask students to describe their experiences at a “Subway” type of sandwich shop to emphasize the importance to line speed of preportioning items such as cold cuts and cheeses. Mention that for some foods, preportioning may not be practical. Examples include soups and other hot or very cold liquid items.

Portion Control Training All food production and service employees require portion-control training. Training must be ongoing. Service personnel must be continually reminded of proper portion sizes. Instructor’s Notes Explain that servers sometimes are “pressured” by some guests to increase portions sizes. Servers, anxious to protect or increase their tips, may do so. Ask students, “What can managers do to ensure that servers do not change portion sizes while, at the same time, ensuring high levels of guest satisfaction?”

Portion Control Training continued Servers must be very knowledgeable about portion sizes if they are to consistently satisfy their guests. Instructor’s Notes Explain that well-trained servers can note portioning mistakes made in the kitchen that could lead to dissatisfaction among guests.

Additional Management Tasks Monitor and follow through Visually inspect served food items as frequently as possible. Regularly check the sizes of scoops and ladles used for portioning. Ensure proper plate presentation. Portion size Item placement Garnish Instructor’s Notes One of a manager’s most important tasks is to continually monitor food production. Ask students where they would want their managers to be during a “rush” in a restaurant they themselves owned.

Portioning Reports Usage reports tell Waste reports tell The number of items issued to the cook’s line The number of items sold to guests The number of items returned to inventory Waste reports tell The items returned by guests The reasons for their return Instructor’s Notes Remind students that waste reports were discussed in the previous chapter. Ensure that students know the differences between these two reports. Ask which of these two reports is most critical to the operation.

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.

Key Term Review 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 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.

Key Term Review 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 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

Workbook Chapter Seven

Review for Test 1 – Chapters 1-7 Review calculations for food cost: Given inventory & purchases Given sales & food cost percent Calculation of cost per person Fixed costs vs variable costs Review calculations on an Income statement, costs as a percent of sales