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

© 2007 Thomson Delmar Learning. All Rights Reserved. Converting Metric and U.S. Standard Weights 1971—Department of Commerce recommended the U.S. convert to metric 1975—President Ford signed into law the Metric Conversion Act Today—90% of world nations use metric system

© 2007 Thomson Delmar Learning. All Rights Reserved. Metric System A decimal system based on the number 10 All measurements are multiples of 10 Standard rules for amounts of units through the use of prefixes Units of measure have specific names

© 2007 Thomson Delmar Learning. All Rights Reserved. Metric System Prefixes –Example: 1 meter = 10 decimeters = 100 centimeters = 1,000 millimeters –1 decimeter = 0.1 meter –1 centimeter = 0.01 meter –1 millimeter = meter

© 2007 Thomson Delmar Learning. All Rights Reserved. Metric System Units of Measure –Meters represent length –Grams represent mass or weight –Liters or cubic meters represent volume –Degrees Celsius represent temperature

© 2007 Thomson Delmar Learning. All Rights Reserved. Converting Temperatures Metric System –Celsius Scale Water boils at 100°C and freezes at 0°C U.S. Standard Measurements –Fahrenheit Scale Water boils at 212°F and freezes at 32°F

© 2007 Thomson Delmar Learning. All Rights Reserved. Converting Temperatures Degrees Celsius –Subtract 32 from the given Fahrenheit temperature and multiply the result by 5/9 or 0.56 Degrees Fahrenheit –Multiply the Celsius temperature by 9/5 or 1.8 and add 32 to the result

© 2007 Thomson Delmar Learning. All Rights Reserved. Recipe Analysis Purpose –To determine the related costs and sales contributions for each menu item Raw cost Contribution to profit Sales history

© 2007 Thomson Delmar Learning. All Rights Reserved. Standardized Recipe The use of a standardized recipe ensures: –Correct preparation –Consistent quality –Predictable yield –Predictable cost

© 2007 Thomson Delmar Learning. All Rights Reserved. Calculating Recipe Cost From the unit cost/market price that is provided, calculate the extended price (extend 3 places) for each item of the recipe Total the extended price column, round to nearest cent Divide total by recipe yield to determine per serving cost

© 2007 Thomson Delmar Learning. All Rights Reserved. Calculating Quantities to Order Purpose –Reduce inventories –Reduce waste due to spoilage and over- production

© 2007 Thomson Delmar Learning. All Rights Reserved. Prime Variable Costs Calculating Food, Beverage, and Labor Costs –Fixed Cost Known in advance Expressed in dollars Not affected by sales –Examples: rent, mortgage, bank loans, insurance, salaries, equipment rental or leases

© 2007 Thomson Delmar Learning. All Rights Reserved. Prime Variable Costs Calculating Food, Beverage, and Labor Costs –Variable or Controllable Cost Known in advance Expressed as percentage of sales Affected by sales –Examples: supplies, utilities, food, beverage, labor

© 2007 Thomson Delmar Learning. All Rights Reserved. Prime Variable Costs Prime Costs –15 to 30 percent food cost –10 to 30 percent beer, wine and liquor cost –15 to 30 percent labor cost

© 2007 Thomson Delmar Learning. All Rights Reserved. Food and Beverage Costs Beginning Food Inventory + Food Purchases – Ending Food Inventory = Cost of Food Total Food Cost (FC) = Food Cost % (FC%) Total Sales (S)

© 2007 Thomson Delmar Learning. All Rights Reserved. Labor Costs Total Labor Cost (LC) = Labor Cost % (LC%) Total Sales (S)

© 2007 Thomson Delmar Learning. All Rights Reserved. Production Management Involves the following: –Accounting –Product development –Estimating –Procurement –Staffing and scheduling –Production efficiency

© 2007 Thomson Delmar Learning. All Rights Reserved. Production Management Involves the following: –Waste management –Quality control –Storage –Distribution

© 2007 Thomson Delmar Learning. All Rights Reserved. Recipe Development (Product Development) Must meet expectations of the customers Must meet profitability demands of the operation Must use ingredients in advantageous ways

© 2007 Thomson Delmar Learning. All Rights Reserved. Cross-Utilization Affects many areas of kitchen operation: –Procurement –Inventory management –Cash flow –Food production

© 2007 Thomson Delmar Learning. All Rights Reserved. The Three C’s of Production Reports Purposes: –Control Recording all activity surrounding all prepared menu items –Communication Giving direction to the staff as to how much food to prepare –Calculation Determining the value of food sold and the expected profit

© 2007 Thomson Delmar Learning. All Rights Reserved. Calculating Quantities to Make Sell the party on a cost-plus basis whereby food is constantly supplied as needed and a reasonable profit is added at the end over real costs Make the customer responsible for all decisions regarding quantities of food

© 2007 Thomson Delmar Learning. All Rights Reserved. Estimating Hors d’Oeuvres Information needed: –Length of party Longer present, more food required –Time of day Before a meal, need not be hearty, but during the meal hour, need to be substantial in quantity and portion –Makeup of the attendees Males eat more than females, younger people more than older people

© 2007 Thomson Delmar Learning. All Rights Reserved. Converting Recipes Increase Yield: –Divide the desired yield by the current yield to get a working factor –Multiply each ingredient amount in the recipe by the working factor

© 2007 Thomson Delmar Learning. All Rights Reserved. Converting Recipes Decrease Yield –Write the desired yield over the current yield as a fraction –Find the least common denominator –Reduce the fraction to its lowest term to get a working factor –Multiply each ingredient amount in the recipe by the working factor

© 2007 Thomson Delmar Learning. All Rights Reserved. Menu Analysis Purpose: –Recording the sales history of all menu items sold –Evaluating the item’s contribution to profit and customer appeal Variables to Consider –Food cost percentage –Contribution margin –Goal value

© 2007 Thomson Delmar Learning. All Rights Reserved. Menu Analysis Variables to Consider –Popularity –Selling price –Variable expense –Fixed expenses

© 2007 Thomson Delmar Learning. All Rights Reserved. Food Cost Percentage Cost of Menu Item = Food Cost Percentage Menu Selling Price

© 2007 Thomson Delmar Learning. All Rights Reserved. Contribution Margin Selling Price (SP) – Food Cost (FC) = Contribution Margin (CM)

© 2007 Thomson Delmar Learning. All Rights Reserved. Goal Value Determined by multiplying a series of numbers together to reveal a score –Information needed: Food cost percentage Variable cost percentage Selling price Item popularity (actual number of portions sold for each item)

© 2007 Thomson Delmar Learning. All Rights Reserved. Goal Value The values for each variable are represented by the following letters: –A = 1.00 – Food Cost Percentage –B = Item Popularity –C = Selling Price –D = 1.00 – (Variable Cost Percentage + Food Cost Percentage) A × B × C = Goal Value (GV)

© 2007 Thomson Delmar Learning. All Rights Reserved. Pricing the Event Methods –Cost-Based Pricing Most detailed and time-consuming, but most accurate Calculate all actual costs, then add predetermined markup to arrive at sales price –Multiplier-Based Pricing Divide 100% by desired food cost percentage to reveal multiplier Multiply all raw costs by the multiplier to arrive at selling cost

© 2007 Thomson Delmar Learning. All Rights Reserved. Pricing the Event Methods –Competitive-Based Pricing Determined by the price competitors are charging for similar goods and services –Client-Based Pricing Determined by amount the customer (market) will bear