1. Expenses Of A Foodservice Operation
Costing of Sales
Food Cost

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

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

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

5. 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%

6. 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

7. 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

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

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

10. 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

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

12. 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 = ?

13. 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 = ?