Calculating Food Costs

1. Calculating Food Costs CA-ICA-5c: Identify procedures used to calculate the cost of a standardized recipe and cost per portion and perform calculations.

2. Portion Control • Customers expect food to be uniform and consistent every time • Serving consistent portions is essential to the success of a restaurant

3. How to Control Portions • Purchase items according to standard specifications • Follow standardized recipes • Use portioning tools

4. Calculating Unit Cost • In order to determine the cost of a recipe, you must first determine how much the ingredients cost • Most foodservice facilities purchase food in bulk • 50 lb bag of flour

5. Calculating Unit Cost • The Unit Cost is the cost of each individual item • As purchased price is the cost you paid for the item • Example: a 50-lb bag of sugar costs $22.00. A marinated mushroom recipe call for several ounces of sugar. Therefore, the unit for the recipe is ounces. You must convert AP unit (lb) to ounces. 50 lb. x 16 oz. = 800 oz.

6. Calculating Unit Cost • To find out how much each ounce costs, divide $22.00 by 800 oz. $22.00 / 800 oz. = $0.03 per ounce (unit cost)

7. Some foods, such as deli meats, are used completely as they as purchased = NO FOOD WASTE Other foods that require trimming or deboning result in food waste Chicken, fruit, etc. The product yield is the usable portion of food product Many times foods lose volume or weight as they are prepared Ex. A roast can shrink up to 1/3 of its original size when it is cooked Food Waste and Product Yields

8. The actual weight of food product that is served to customers is called the as-served portion (AS) Expressed by weight The amount of consumable food product that remains after preparation is called the edible portion (EP) Expressed in a % As-Served and Edible Portion

9. Two red bell peppers are used to prepare a mushroom salad. The two peppers together weigh 11 oz. A trimming, you have 3 oz. of trim loss. AP Weight = 11 oz. Trim Loss = 3 oz. Yield Wt = 8 oz. Yield % = 8 oz. / 11 oz. Yield % = .73 or 73% Edible Portion Yield PercentageYield % = EP / amount of food purchased

10. Costing Recipes • Determining the cost of a standardized recipe is an important part of cost control • Once a recipe cost is calculated, the operation can determine: • How much each portion costs • Menu prices

11. Questionable Ingredient Factor Covers the cost of ingredients that are difficult to measure. Foodservice operations have a preset Q factor usually 1% - 5% Multiply the total cost of ingredients by the Q factor Use the “Q” Factor: For small amounts of ingredients (1/4 tsp) Measurements such as “to taste” Covers costs resulting in seasonal changes in food prices Covers condiments The “Q” Factor

12. Cost Per Portion • The amount you would serve to an individual customer Recipe Cost / # of Portions = Cost Per Portion Ingredients Cost $7.20 Serves 10 portions Cost per Portion = $0.72

13. Review • A 25 lb. bag sugar costs $28.95. What is the unit cost per ounce of sugar? • A 10 gallon bucket of buttercream icing costs $15.25. What is the unit cost per cup of icing? • The AP weight of a watermelon is 7 ½ lb. The trim loss = 5 lb. What is the EP yield % for the watermelon? • Total cost of ingredients for a recipe that serves 8 portions is $12.96. With a Q factor of 3%, what is the cost per serving?

14. Answers • 25 lb x 16 oz. = 400 oz (400 oz. = 25 lb.) $28.95 / 400 = .07 => $0.07 per ounce of sugar • 10 gal x 16 c = 160 cups (160 c = 10 gal) $15.25 / 160 = .095 => $0.10 per cup of icing

15. Answers • 7.5 lb. – 5 lb. = 2.5 lb. 2.5 lb. / 7.5 lb. = .333 => 33% EP • $12.96 x .03 = .39 => $0.39 $0.39 + $12.96 = $13.35 $13.35 / 8 portions = $1.67 per portion