Using Standardized Recipes to Determine Standard Portion Cost

1. Using Standardized Recipes to Determine Standard Portion Cost • Controlling Foodservice Costs 3 OH 3-1

2. Chapter Learning Objectives • 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.

3. Standardized RecipesEnsure Consistency In • Ingredient quality • Preparation method • Portion size • Service method

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

5. Standardized Recipes also Include • Preparation time • Storage and preparation information • Cooking method(s)

6. Sample Standardized Recipe

7. 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

8. 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

9. 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.

10. Comparison of AP and EP Weights

11. 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. Managers Must

12. EP Amounts • Because many food items shrink when they are cooked, managers must know exactly how much cooking loss to expect.

13. Ways to Estimate Yields • Butcher’s tests • To measure loss from deboning, trimming, and portioning meats, fish, and poultry • 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)

14. 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.

15. 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)

16. 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)

17. Creating Recipe Cost Cards continued Step 6 – Add the cost of all ingredients.

18. 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)

19. 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)

20. Key Term Review • As purchased (AP) method • Butcher test • Conversion chart • Cooking loss test • Edible portion (EP) method

21. Key Term Review • Portion size • Recipe cost card • Shrinkage • Standard portion cost • Standardized recipe

22. Chapter Learning Objectives—What Did You Learn? • Explain why a standardized recipe is important for cost control and product consistency. • Describe the 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.