Notes on Calculating Food Costs for Recipes

1. Notes on Calculating Food Costs for Recipes 4.02 Culinary Arts Rebecca Benners 2013

2. What are Food Costs? • Food Costs – these are determined by the sum cost of all ingredients it takes to create certain product. This does not include labor or other materials. • Portion control helps to prevent excessive food costs • Calculating food cost helps determine if something is feasible to make and sell. • Food costs are calculated using a recipe costing form

3. Portion Control • Controlling the serving size of an item in order to regulate the cost(price) of each serving. • Purchasing by specifications – purchasing exactly what is called for in purchase order that was created using recipes and forecasts of incoming customers. • Following standardized recipes – adhering to the written instructions developed by a restaurant in order create a product that is consistent in size and quality. • Portioning tools and equipment – everything that helps determine a portion size – these can be scoops, plates, or pans

4. Portion Control – Apply It • What is the cost per serving? • Why is cost per serving significant? • How does a food service worker control portions? (At least three things…) • What tools are used to control portions?

5. Calculating Food Costs • As purchased price (AP) – the price of the item as it is purchased without any trimming (removing inedible portions of a food) • Ex: 50 # of sugar for $22.00 • Ex: 5 doz. Eggs for $15.00 • Unit cost – this is the price of an item per unit of measure. Units of measure can be per pound, per ounce, or even per item like can or egg. • Ex: 1 oz. of sugar for _____? • Ex: 1 egg for _____?

6. Calculating Food Costs • The as purchased price may be used to calculate food costs if there is no food waste due to trimming. • Foods that do not have waste • Flour • Sugar • Milk • Deli meats • This doesn’t work for all food though. Foods that have waste • Apples • Bone-in Meats • Grapes • The edible portions and amount of food left after trimming must be calculated to determine menu cost.

7. Product Yield • Product yield: The amount of food left after preparation • Preparation includes process like peeling, coring, de-seeding, and cooking • Ex: 3 pounds of bone-in chicken breasts will yield 1.5 pounds of boneless chicken breasts. • What can affect yield? • Shrinkage • Trim and waste • Non-edible portions • Poor handling and preparation As Served is the actual weight of food product that is served to customers

8. Product Yield • Edible portion (EP) – the portion of a food item that is ready to cook or serve after trimming. • What you buy isn’t always what you serve. Ex: • Tomatoes –1 lb = 0.99 ready to cook/serve • Potatoes –1 lb = 0.81 ready to cook • Apples – 1 lb = 0.78 ready to serve, cored & peeled • Romaine –1 lb = 0.64 ready to serve, after trimming • Watermelon –1 lb = 0.57 ready to serve, after trimming • Foodservice buyer must take into consideration AP cost, EP cost, and AS portion when determining how much to buy.

9. Apply It: • Explain how as-purchased price and unit price differ • What is product yield • What factors influence product yield? • What does AS stand for? • What is edible portion?

10. Calculating the Product Yield • Yield percentages – standardized percentages which represents how much edible food is left after preparation and processing are done. -Percentage is derived by dividing current product weight by original product weight • http://www.chefs-resources.com/ProduceYields • Chefs must be familiar with the product yields to determine the edible portions.

11. Determining Edible Portions • Raw yield tests – determining how much food that raw food products will yield after preparation • Weigh product before trimming to get the AP weight. • Weigh material that was trimmed from the product to get the trim loss. • Subtract trim loss from AP weight to get the yield weight • Divide the yield weight by the AP weight to get the yield percentage

12. Determining Edible Portions • Cooking loss test – a test used to determine shrinkage (the percentage of food that is lost during storage and preparation) during the food cooking. • Identify the net cost and weight of the raw food product • Note how many portions are produced from the product after cooking • Multipy the number of portions by the portion weight when served. This gives the total weight as served • Other factors can impact the reliability of these measurements (poor food handling, etc).

13. Calculating Food Costs – Apply it • Unit Price: What is the cost per unit? • 16 cans of tomato soup for $32.00 • As purchased price: what is the cost per # • 3 lbs. Untrimmed chicken breast for $10.57 • What factors can impact product yields? • What do you remove from these foods to get the edible portion?: Chicken Red peppers Onions Shell Nuts • How are AP and EP amounts important to chefs? • How is a cooking loss test different from raw yield test?

14. Costing recipe Costing form –a form utilized when determining how much a recipe will cost to produce.

15. Costing recipe a. Name – name of the recipe (Ex. Green beans) b. Ingredients – all of the ingredients necessary to make a product and quantity C. Quantity A B C

16. Costing the Recipe A. As purchased – the purchase price Or Unit purchase price – the cost of each item in the unit it is sold (ex. $1.20 per dozen of large eggs) C A B

17. Costing the Recipe B. Yield % - percentage left after boning and trimming; found in the book of yields C. Edible Portion – the amount that is left based on yield % C B

18. Costing the Recipe D. Cost per unit – cost of each item in a unit practical for your recipe (ex. $0.10 per egg because one dozen is $1.20) OR Ingredient cost – the cost of each ingredient in your recipe (ex. $0.20 for 2 eggs) D

19. Costing recipe E. Yield – the number of servings F. Portion – the serving size (ex. 1 cup) G. Total cost divided by the number of portions H. % of menu/selling price that accounts for the food I. Cost per portion / food cost percentage E F G H I

20. Costing recipe You may also see…. J. Q factor – the cost of additional items that customers might want but aren’t a part of a recipe, such as butter or jam for spreading, etc. These cost money and a percentage, called a Q factor is used to account for these things.