Food Cost Food Cost Percentages

Determines if menu price and costs for each item are in line Can be figured two ways Percentage = food cost menu price Menu price = food cost percentage

Portion Cost Raw food cost Total cost of all ingredients in a recipe divided by the number of portions served. Portion cost = cost of ingredients Number of portions

Procedure for calculating portion cost 1. List ingredients and quantities of recipe as prepared. 2. Convert the recipe quantities to AP quantities. 3. Determine the price of each ingredient (from invoices, price lists, etc.) The units in this step and in step 2 must be the same in order for you to do the calculation. 4. Calculate the total cost of each ingredient by multiplying the price per unit by the number of units needed. 5. Add the ingredient costs to get the total recipe cost. 6. Divide the total cost by the number of portions served to get the cost per portion.

Invoices

How to read an invoice Know how the product came and how it was priced. Example: 4-5# Cheddar $41.65 This means all 4 bags of cheese cost a total of $41.65 To determine the cost of 1-5# bag you must divide $41.65/4 = $ Therefore, 1 bag costs $ To determine the cost of 1# of cheese you must divide $10.41/5 = $2.08 Therefore, 1# of cheese costs $2.08

How to cost out recipes Determine the exact amount of each ingredient used. Determine the cost of each ingredient according to the unit you are using. Example: you need 3 oz of cheddar cheese in the recipe. 1# of cheese costs $2.08. To find the cost of 1 ounce you must divide $2.08/16 = $.13 You need 3 oz. You must multiply $.13 x 3 = $.39

Raw Food Cost After you determine the cost of each item in the recipe, you simply add them all up to determine the total cost. This is known as the raw food cost.

Determine the menu price Use the formula : Menu price = food cost/percentage Example: The raw food cost for chicken salad is $2.75. You want to run a 35% food cost. $2.75 divided by.35 = $7.86 You would need to sell the chicken salad for $7.86 to equal a 35% food cost.

Determine the food cost percentage Use the formula: Percentage = food cost/menu price, Example: Grilled cheese costs $.45. You want to sell it at $1.75 on the menu. $.45 divided by $1.75 =.257 or a 26% food cost.

Determining overall food cost Ideally a 35% food cost is GREAT! However, it is unrealistic for every item! Determine the food cost percentage for all items on your menu and take the average. This is your overall food cost percent. This is usually done on a month to month basis.

1. Braised Swiss SteakYield: 50 servings IngredientsAmount Mkt. priceExtension cost 6 oz round steak50 ea 1.45/lb$12.75 onions12 oz.18/lb$.12 garlic1 oz 1.52/lb$.10 tomato puree1 pt 1.20/gal$.15 brown stock9 qt.90/gal$2.07 salad oil3 cups.70/qt$.18 bread flour12 oz.14/lb$.11 salt3/4 oz.16/lb$.01 Total Cost: $29.93 Cost per serving: $.60

2.Salsbury Steak Yield: 50 servings IngredientsAmount Mkt. priceExtension cost Beef chuck14 lb 1.15/lb$16.10 Onion3 lb.15/lb$.45 garlic1/2 oz 1.52/lb$.05 Salad oil1/2 cup.70/qt$.09 Bread cubes2 lb.36/lb$.72 Milk1 1/2 pt 1.65/gal$.32 Whole eggs8.84/doz$.56 Pepper1/4 oz 1.18/lb$.02 Salt1 oz.16/lb$.01 Total cost: $18.32 Cost per serving: $.37