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Food Cost

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 Menu price = food cost percentage. Portion Cost. Raw food cost

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Food Cost

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  1. Food Cost Food Cost Percentages

  2. Determines if menu price and costs for each item are in line • Can be figured two ways • Percentage = food cost menu price • Menu price = food cost percentage

  3. Portion Cost • Raw food cost • Total cost of all ingredients in a recipe divided by the number of portions served. • Portion cost = cost of ingredients Number of portions

  4. Procedure for calculating portion cost • List ingredients and quantities of recipe as prepared. • Convert the recipe quantities to AP quantities. • Determine the price of each ingredient (from invoices, price lists, etc.) The units in this step and in step 2 must be the same in order for you to do the calculation. • Calculate the total cost of each ingredient by multiplying the price per unit by the number of units needed. • Add the ingredient costs to get the total recipe cost. • Divide the total cost by the number of portions served to get the cost per portion.

  5. Invoices

  6. How to read an invoice • Know how the product came and how it was priced. • Example: 4-5# Cheddar cheese @ $41.65 • This means all 4 bags of cheese cost a total of $41.65 • To determine the cost of 1-5# bag you must divide $41.65/4 = $10.41. Therefore, 1 bag costs $10.41. • To determine the cost of 1# of cheese you must divide $10.41/5 = $2.08 Therefore, 1# of cheese costs $2.08

  7. How to cost out recipes • Determine the exact amount of each ingredient used. • Determine the cost of each ingredient according to the unit you are using. • Example: you need 3 oz of cheddar cheese in the recipe. • 1# of cheese costs $2.08. To find the cost of 1 ounce you must divide $2.08/16 = $.13 • You need 3 oz. You must multiply $.13 x 3 = $.39

  8. Raw Food Cost • After you determine the cost of each item in the recipe, you simply add them all up to determine the total cost. • This is known as the raw food cost.

  9. Determine the menu price • Use the formula : Menu price = food cost/percentage • Example: The raw food cost for chicken salad is $2.75. You want to run a 35% food cost. • $2.75 divided by .35 = $7.86 • You would need to sell the chicken salad for $7.86 to equal a 35% food cost.

  10. Determine the food cost percentage • Use the formula: Percentage = food cost/menu price, • Example: Grilled cheese costs $.45. You want to sell it at $1.75 on the menu. • $.45 divided by $1.75 = .257 or a 26% food cost.

  11. Determining overall food cost • Ideally a 35% food cost is GREAT! • However, it is unrealistic for every item! • Determine the food cost percentage for all items on your menu and take the average. • This is your overall food cost percent. • This is usually done on a month to month basis.

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