1. FOOD COSTING A Vital part of success in the food industry!

2. Who has the responsibility of controlling expenditure and checking food costs? THE CHEF DE CUISINE OR EXECUTIVE CHEF

3. The final selling price of a plate of food must cover: FOOD COSTS LABOURPROFITOVERHEADS Exact price of each ingredient used Salaries and wages Rent Electricity Gas Water The lower the other expenses the higher the profit

4. FOOD COSTS These need to be kept as low as possible. Ideally they should make up between 30 and 40% of the final selling price To calculate cost of each ingredient use the following NB FORMULA: Price / Units purchased X Units used Wastage, pilfering and unwise buying will increase the food cost percentage and decrease the final profits of the business

5. TO CALCULATE THE SELLING PRICE: Use the following formula: COST PRICE ÷ COST PRICE % X 100 [This mark-up should cover overheads and salaries and also allow for a profit]

6. GROSS PROFIT VS NET PROFIT ????? GROSS PROFIT This is a false profit... It is the money in the bank BEOFRE the bills are paid i.e. Total Takings less FOOD COSTS only

7. NET PROFIT This is REAL profit The money in the bank after ALL the expenses have been paid – Total income less total expenses