1. Controlling food costs
Why do different food services charge different amounts for the same food?

2. Steps in controlling food costs
SEVEN STAGES OF THE FOOD FLOW PROCESS
Purchasing
Receiving
Storing
Issuing
Preparing
Cooking
Serving

3. Getting food quality product for cost Establish quality standards
PURCHASING
Getting food quality product for cost
Establish quality standards

4. Getting what is paid for in quality and quantity
Receiving
Getting what is paid for in quality and quantity
Check accuracy of orders

5. Storage
Storage facilities must be safe, sanitary and efficient
Monitor freezers and refrigerators
Improperly stored food will be wasted and increase food costs

6. Inventory control allows record of product
Issuing
Inventory control allows record of product
Tracks most frequently used product
Helps prevent pilfering

7. Each product needs to be used efficiently
Preparation
Each product needs to be used efficiently
Have detailed specifications as to how each food is prepared

8. Incorrectly prepared food goes to waste increasing food costs
Cooking(production)
Incorrectly prepared food goes to waste increasing food costs
Proportioned food consistently the same

9. Service(sale)
Good service is crucial
Correctly taking orders so mistakes are not made in the kitchen
Mistakes can directly and indirectly affect costs

10. Determining food costs
Food cost-actual dollar value of food used in an operation for a certain period - includes cost of food sold, food given away, food wasted, wood spoiled, food incorrectly prepped, overportioned, overproduced, pilfered
Inventory- represents dollar value of food product in storage
Opening inventory-physical inventory at the beginning of a given period
Closing inventory-physical inventory at the end of a given period

11. Calculating food costs
(Opening inventory + Purchases= total food available) – closing inventory= total food cost
Some places also subtract employee meals, complimentary items to customers, transferring food to another location

12. Determining food cost percentage
Total food cost percentage – is relationship between sales and cost of food to achieve those sales
Total food cost divided by sales equals food cost percentage

13. Establishing standard portion costs
Standardized recipes – followed every time item is prepared
Standard portion cost – exact amount that one serving or portion cost
Recipe cost card – tool used to calculate standard portion cost of menu item

14. As-purchased versus edible-portion costs
As-purchased (AP) method – used cost ingredient before any trim or waste
Edible-portion (EP) method – cost of ingredient after trimming and removing waste

15. Recipe yields
Recipe yield is process of determining the number of portions a recipe produces
Converting recipe yields by determining desired yield divide by original yield to get conversion factor then multiplying all ingredients by conversion factor, convert answer to logical measurable amounts

16. Controlling portion sizes
CAN BE CONTROLLED BY WEIGHT ,VOLUME, OR COUNT
Scoops
Ladles
Serving spoons
Serving dishes
Ramekins, bowls, cups
Portion scales

17. Monitoring production volume and cost
Food production chart – shows amount that should be produced
Strive to produce quantities as close to actually needed amount
Leftovers may not be suitable to serve
Not having enough can also be an issue

18. Menu pricing
Price should include all costs needed to purchase, prepare, and serve as well as labor, rent, utilities
Methods used include - contribution margin method, average check method, food cost percentage method

19. Contribution margin method
Must know cost of each item sold, number of customers

20. Straight makeup method
Multiply raw food costs by predetermined fraction Known as mark up amount

21. Food cost percentage method
Food cost divided by food sales