1. Using Standardized Recipes to Determine Standard Portion Cost3
Controlling Foodservice Costs
OH 3-1

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.

3. Standardized Recipes Ensure Consistency In:
Ingredient quality
Preparation method
Portion size
Service method

4. Standardized Recipes Identify:
Ingredient details (quality)
Ingredient weights and measures
Necessary equipment and tools
Volume (number) of portions

5. Standardized Recipes also Include
Preparation time
Storage and preparation information
Cooking method(s)

6. Reasons for Standardized Recipes:
Accurate purchasing
Dietary Concerns
“Truth In Menu” laws (protects consumers from fraudulent menu claims)
Menu Consistency
New employee training
Recipe Costing
Menu Pricing

7. Excuses against Standardized Recipes:
How might you problem solve the following excuses?
Take too long to write out and use.
We always lose them.
Chef refuses to reveal his/her secrets.
Too hard to read.
Our people know how to makes things without them.
Our staff cannot read/speak English.

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

9. Comparison of 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.

10. Calculating Shrinkage Percentage
Shrinkage % + Yield % = 1.00 or 100%
Product Loss
AP Weight
= Shrinkage %
EP Weight
AP Weight
= Yield %

11. Calculating Shrinkage Percentage
A recipe calls for 5 pounds of pork ribs with a total loss of 1 pound, 4 ounces. What is the waste percentage? What is the net product yield percentage?
Product Loss 20 oz.
AP Weight oz.
= 25% Shrinkage
EP Weight 60 oz.
AP Weight 80 oz.
= 75% Yield

12. Managers Must:
Determine if recipe ingredients are listed in AP or EP formats.
Apply the correct costing method to the ingredients.
Use the information to price menu items.
Periodically re-cost recipe ingredients.

13. Calculating the Shrinkage of Prime Rib Activity – page 32
AP price per pound: $3.49
EP price per pound: $4.54
AP weight: lb
AP net cost: $ ($3.49 x 18)
Final weight: 13 lb
Final net cost: $ ($4.54 x 13)
Shrinkage pounds: 5 lb (18 – 13)
Shrinkage %: % (5 ÷ 18)
Cost per portion: $ (12 ÷ 16 = 0.75)
(0.75 x $4.54)

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

15. 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)

16. Creating Recipe Cost Cards – page 34 & 35
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.

17. Creating Recipe Cost Cards – page 34 & 35
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)

18. Creating Recipe Cost Cards – page 34 & 35
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)

19. Creating Recipe Cost Cards – page 34 & 35
Step 6 – Add the cost of all ingredients.
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—$2.91 ($ ÷ 50 portions = $2.91 per portion)

20. Converting a Standardized Recipe to a Recipe Cost Card Activity – page 37

21. How Would You Answer the Following Questions?
The cost of most AP food products is higher than their EP cost. (True/False)
Which of the following is NOT true about recipe cost cards?
They help establish menu selling prices.
They reduce food production time.
There should be one for every menu item.
They inform managers about how much it costs to make a single portion of an item.
Software programs designed to help foodservice managers create recipe cost cards are readily available. (True/False)

22. Key Term Review As purchased (AP) method Butcher test Conversion chart
Cooking loss test
Edible portion (EP) method

23. Key Term Review
Portion size
Recipe cost card
Shrinkage
Standard portion cost
Standardized recipe

24. Chapter Learning Objectives— What Did You Learn?
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.