OH 3-1

Using Standardized Recipes to Determine Standard Portion Cost

Controlling Foodservice Costs

3OH 3-1

OH 3-2

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.

OH 3-3

Standardized RecipesEnsure Consistency In

Ingredient quality

Preparation method

Portion size

Service method

OH 3-4

Standardized Recipes Identify

Ingredient details (quality)

Ingredient weights and measures

Necessary equipment and tools

Volume (number) of portions

OH 3-5

Standardized Recipes also Include

Preparation time

Storage and preparation information

Cooking method(s)

OH 3-6

Sample Standardized Recipe

OH 3-7

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

OH 3-8

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

OH 3-9

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.

OH 3-10

Comparison of AP and EP Weights

OH 3-11

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 3-12

EP Amounts

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

OH 3-13

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)

OH 3-14

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.

OH 3-15

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)

OH 3-16

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)

OH 3-17

Creating Recipe Cost Cards continued

Step 6 – Add the cost of all ingredients.

OH 3-18

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)

OH 3-19

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 3-20

Key Term Review

As purchased (AP) method

Butcher test

Conversion chart

Cooking loss test

Edible portion (EP) method

OH 3-21

Key Term Review

Portion size

Recipe cost card

Shrinkage

Standard portion cost

Standardized recipe

OH 3-22

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?