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Controlling Food Costs during Production

7OH 7-1

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Learning ObjectivesAfter completing this chapter, you should be able to:

• Describe the tools managers use to estimate food-production levels.

• Explain how managers monitor food quality.

• Detail how managers monitor the food-production process.

• Detail how managers monitor the beverage-production process.

• Explain how managers monitor beverage quality.

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Chapter 7 Controlling Food Costs during ProductionChapter 7 Controlling Food Costs during ProductionChapter 7 Controlling Food Costs during ProductionChapter 7 Controlling Food Costs during Production

ESTIMATING FOOD-PRODUCTION LEVELSDeveloping Sales Forecasts

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Determining Quantity to Produce

Accurate food production schedules are important because Overproduction causes excessive leftovers and

waste.

Underproduction causes production shortages and unhappy customers.

Both situations reduce profits!

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Determining Quantity to Produce continued

To maximize guest satisfaction, managers help their production staff know how much to prepare on the proper day and at the proper time.

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To Ensure Proper Production

Professional managers always use food production charts!

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Food Production Charts

Created by studying past sales (sales histories) Generally, the best predictor of what guests will buy

in the future is what they purchased in the past.

Created based upon management’s estimate of future sales

If we know the percent of customers that have previously purchased an item, we can apply that to the new estimated customers and arrive at the amount to forecast.

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When Using Production Charts

Prepare an estimate of the number of guests to be served.

Indicate the actual number of items to be produced.

Post the production chart where it can be seen easily.

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When Using Production Charts continued

Ensure the required standardized recipes are readily available.

Periodically check the actual recipe yield against that listed on the standardized recipe.

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Recipe Yields

Recipe yields must be known. Accurate costing of menu items is not possible

without known and consistent yields from standardized recipes.

Effective production planning is also impossible without known recipe yields.

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Recipe Yields continued

To calculate a recipe yield, compute the total volume of the recipe by Weight—for those recipes where portion size is

determined by weight.

Volume—for those recipes where portion size is determined by volume.

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Calculating Recipe Yield

Weigh or measure only the major ingredients.

Account for cooking loss, especially for Meats

Vegetables

Fruit

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Recipe Conversions

Standardized recipes will need to be adjusted or scaled based on the revised forecasts.

Step 1 – Compute the conversion factor.

Desired yield ÷ Current recipe

yield = Conversion factor

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Recipe Conversions continued

Step 1 – Example Current yield, fifty portions

Desired yield, forty portions

Desired yield ÷ Current recipe

yield = Conversion factor

40 ÷ 50 = 0.80

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Recipe Conversions continued

Step 2 – Convert ingredients into units that can be easily multiplied or divided.

Convert weights to ounces.

Convert cups, pints, and quarts to fluid ounces.

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Recipe Conversions continued

Step 3 – Multiply each ingredient by the conversion factor.

Example

96 oz x 0.80 = 76.8 oz

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Recipe Conversions continued

Step 4 – Convert ingredient amounts back to normally used units.

Example

76.8 oz ÷ 8 oz = 9.6 c; or 2 qt, 1½ c

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Chapter 7 Controlling Food Costs during ProductionChapter 7 Controlling Food Costs during ProductionChapter 7 Controlling Food Costs during ProductionChapter 7 Controlling Food Costs during Production

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Monitoring Standards

Tasting foods regularly is one way to ensure standards are met. The use of standardized recipes is another.

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Food That Does Not Meet the Restaurant’s Standards

Should not be served

Should be salvaged (all or part), if possible

Should be discarded if not salvageable

Increase costs

Reduce profits

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Questions to Ask When Food Fails to Meet Standards

Is the recipe clearly written?

Did the cook understand the recipe?

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Questions to Ask When Food Fails to Meet Standards continued

Are ingredients used in the recipe clearly labeled?

Are the appropriate ingredients in the proper containers? (Do ingredients in containers match the containers’ labels?)

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How Would You Answer the Following Questions?

1. It (is/is not) possible for a cook using a standardized recipe to create a substandard menu item.

2. Waste reports indicate when employees overportion and waste food. (True/False)

3. How many steps does the recipe conversion process have?

A. ThreeB. FourC. FiveD. Six

4. A recipe (yield/portion conversion) test is a calculation of the number of portions produced by a standardized recipe.

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Other controls in food production

Adequate training

Prep and pull lists

Diagrams for line set up

Cooking and Holding temperature logs

Carry over production

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Example prep list

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Chapter 7 Controlling Food Costs during ProductionChapter 7 Controlling Food Costs during ProductionChapter 7 Controlling Food Costs during ProductionChapter 7 Controlling Food Costs during Production

MONITORING BEVERAGE PRODUCTIONMaintaining Beverage Quality Standards

Maintaining Beverage Cost Controls

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Chapter 7 Controlling Food Costs during ProductionChapter 7 Controlling Food Costs during ProductionChapter 7 Controlling Food Costs during ProductionChapter 7 Controlling Food Costs during Production

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Chapter 7 Controlling Food Costs during ProductionChapter 7 Controlling Food Costs during ProductionChapter 7 Controlling Food Costs during ProductionChapter 7 Controlling Food Costs during Production

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Chapter 7 Controlling Food Costs during ProductionChapter 7 Controlling Food Costs during ProductionChapter 7 Controlling Food Costs during ProductionChapter 7 Controlling Food Costs during Production

Key Terms:Baker’s percentage A formula in which the weight of the flour equals 100 percent and all the other ingredients are calculated in proportion to the weight of the flour.

Carry-over production Food that has been previously produced but not served to customers.

Conversion factor When converting recipes, a multiplier used to adjust the quantity of ingredients on the existing recipe to the quantity needed to produce the desired yield.

Food-production chart A chart that provides the essential information a staff needs to know on exactly what and how much food to prepare.Popularity index The percentage share of a given menu item in its respective category (e.g., entrée), derived by dividing the number of portions sold by the total number of items in the same category thatwere sold.

Pour cost percentage The proportion of beverage cost to sales price.

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Chapter 7 Controlling Food Costs during ProductionChapter 7 Controlling Food Costs during ProductionChapter 7 Controlling Food Costs during ProductionChapter 7 Controlling Food Costs during Production

Key Terms continued:Quality-control line check A system for ensuring product freshness

and sufficient quantities, encompassing taste tests and checking standards.Recipe conversion A method used to change the yield of a recipe from its original yield to a desired yield.

Recipe yield The number of portions a standardized recipe produces.Taste test Tasting done by staff prior to the start of a meal period to determine if products meet the establishment’s standards.