OH 3-1

Agenda

Review Quiz 1

Chapter 3

Homework Quiz

OH 3-2

Using Standardized Recipes to Determine Standard Portion Cost

Controlling Foodservice Costs

3OH 3-2

OH 3-3

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.

OH 3-4

Benefits of Standardized Recipes

Consistency in Food Quality Customer satisfaction

Predictable Yields Preparation method consistent

Standard portion sizes (weight, volume or count)

Service method consistency

Food Cost Control

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What Difference Does It Make???

Mexi Beef Casserole Mexi Beef Casserole Difference in Cost

Cost/serving with 35l b Cost/serving with 40 lb Per Serving

$0.76 $0.85 +$0.09

Not a big deal right?

Annual impact for 3 times per week$0.09 per serving x 200 servings x 156 = $2,808

Mexi Beef Casserole: 35lb ground beef for 200 people 25 - 5 x 5 portions per ½ steam table pan.

OH 3-6

What Difference Does It Make???

What if the pan was cut 4 x 5?

Servings per pan Cost per serving

20 servings $0.95

25 servings $0.76

Difference $0.19

Annual impact for 3 times per week$0.19 per serving x 200 servings x 156 = $5,928

OH 3-7

Benefits of Standardized Recipes Accurate Purchasing

Quantities defined and controlled

Helps ensure compliance with “Truth In Menu” laws Consistent nutrient content

Identification of food alergens

Assists in training new employees

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What Difference Does It Make???

Nutrient Facts 25 servings per pan 20 servings per pan

Serving size 6.5 oz 8.1 oz

Calories 255 318

Protein 12.7 g 15.9 g

Carbohydrate 22.5 g 28.2 g

Total Fat 12.5 g 15.6 g

Saturated Fat 5.0 g 6.2 g

Cholesterol 44.0 g 55.0 g

U. S. Department of Agriculture, Food and Nutrition Service, with the National Food Service Management Institute. (2002). Measuringsuccess with standardized recipes. University, MS: National Food Service Management Institute.

OH 3-9

Standardized Recipes Identify

Recipe Title

Ingredient details (quality)

Ingredient weights and measures

Necessary equipment and tools

Volume (number) of portions (Recipe Yield)

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Standardized Recipes also Include

Preparation time

Storage and preparation information

Cooking method(s)

OH 3-11

Sample Standardized Recipe

OH 3-12

Recipe Standardization Process

Recipe verification Prepare recipe, verify yields

Product evaluation

Recipe modification & quantity adjustments Adjusting yields and/or ingredient amounts

Cost recipe based on final standardized recipe

OH 3-13

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

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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.

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Comparison of AP and EP Weights

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Managers Must

1. Determine if recipe ingredients are listed in AP or EP formats.

2. Apply the correct costing method to the ingredients.

3. Use the information to price menu items.

4. Periodically re-cost recipe ingredients.

OH 3-17

EP Amounts

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

OH 3-18

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)

OH 3-19

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.

OH 3-20

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) or

sixteen recipe-ready (EP) cups at $0.175 each ($2.80 ÷ 16 cups = $0.175 per cup)

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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)

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Creating Recipe Cost Cards continued

Step 6 – Add the cost of all ingredients.

OH 3-23

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)

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Spice Factor Can be used instead of costing out every spice,

herb and seasoning

A way to account for “to taste” spices in a recipe

Spreads the cost of spices, herbs and seasonings over all menu items so those that require a larger quantity do not bear the entire cost of the spices

Can also include garnishes or “lost” items as a result of chef error

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Spice Factor, continued Determining a spice factor

Consider which items to include

Calculate the value of all selected items over a period of time

After the value is calculated determine the spice factor as follows:

Spice factor = Value of spice factor items (over time) Value of total food purchases (over same time)

Adjust recipe’s cost by increasing the total cost by the spice factor percent - mulitplying by spice factor

Recipe Cost x (1 + Spice Factor)

OH 3-26

Spice Factor, continued

Example: If the spice factor items cost $2,000 for a six month

period and the total food purchases over the same period of time are $60,000, what is the spice factor?

$2,000/$60,000 = .0333 or 3.33%

If the total recipe cost for Chicken Parmesan which serves 12 people is $53.75, what is the spice-factor adjusted recipe cost?

$53.75 x (1 + .0333) = $55.54

OH 3-27

Q Factor A method to account for side dishes, add-ons or

other freebies that come with entrée dishes.

Only factor for the entrées offered by the business

Determine cost of each of the side or add-on possibilities

Identify the most expensive options that could be selected

Add this cost to every entrée

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Q Factor, continued

Example:A business offers entrées that include a choice of soup

or salad, choice of vegetable or starch, bread and butter. What is the Q factor if the costs are: Tomato soup $0.85 French onion soup $0.65 House salad $0.92 Caesar salad $1.35 Broccoli side $0.43 Carrot side $0.16 Green bean side $0.25 Smashed potato $0.53 Angel hair pasta $0.35 Bread $0.11 Butter $0.08

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Q Factor, continued

Q Factor of $2.07 should be added to all entrées for this business that offer the same add-ons

If a business uses both Spice Factor and Q Factor, the spice factor should only be added once for each entrée. Add the Q factor and then add the spice factor

So, for our Chicken Parmesan what is the cost per portion using both the Spice factor and the Q factor?

OH 3-30

Spice Factor & Q Factor

Chicken Parmesan serving 12 people cost of recipe = $53.75

Spice Factor = 3.33%

Q Factor = $2.07

$53.75 x 1.0333 = $55.54 recipe cost with spice factorCost per portion: $55.54/12 = $4.63Add Q factor: $4.63 + $2.07 = $6.70 cost of entree

OH 3-31

How Would You Answer the Following Questions?

1. The cost of most AP food products is higher than their EP cost. (True/False)

2. Which of the following is NOT true about recipe cost cards?

A. They help establish menu selling prices.B. They reduce food production time.C. There should be one for every menu item.D. They inform managers about how much it costs to

make a single portion of an item.

3. Software programs designed to help foodservice managers create recipe cost cards are readily available. (True/False)

OH 3-32

Key Term Review

As purchased (AP) method

Butcher test

Conversion chart

Cooking loss test

Edible portion (EP) method

OH 3-33

Key Term Review

Portion size

Recipe cost card

Shrinkage

Standard portion cost

Standardized recipe

OH 3-34

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.

Chapter Learning Objectives—What Did You Learn?