Foundations of cost control by daniel traster chapter04

EP CostAP cost per unit = AP$ EP cost per unit = EP$ Because you pay for edible product and its trim/waste when you purchase, the true EP cost of an ingredient is not the same as its AP

Opening Questions

You have a dinner party for 8 people

The onion tart calls for 4 oz of caramelized onions per person

How many pounds of onions should you order?

2# is not the answerYou lose some weight in peeling and some during cooking as water evaporates

Key Terms

As Purchased (AP) form (and measure) of a

product as it comes from a purveyor.

Edible Portion (EP) form (and measure) of a

product after it has been prepped (in some cases, cooked)

and waste or loss has been removed For produce, EP

usually refers to pre-cooked yield after trimming and knife

work is done.

Yield weight or volume of a product remaining after trim and waste are removed In some cases, includes cooking loss.

Yield percent (Y%) ratio of useable product that results on average during the preparation stage.

Calculating Yield %

1. Weigh raw produce in AP form.

2. Process the product as you would for a recipe.

3. Weigh the EP result without the waste.

4. Calculate Y% (decimal form) = EP ÷ AP

Notes on Y% for Produce

• Y% changes with type of processing, even on the same vegetable or fruit.

• Formula assumes trim is not used elsewhere; Y% is higher if waste is put to use.

• Y% should remain consistent for similarly trained employees across days.

• Y% for items portioned by count is 100%.

• For “each” items bought in a size range assume the lowest number in the range.

EP-AP-Y% Graphic Formula

EP

AP x Y%

Example 4c

EP = AP X Y% = 10# X 0.68 = 6.8#

6.8# X 16 = 108.8 oz

How many oz of broccoli florets can you get from 10# of broccoli if the yield for florets is 68%?

Example 4e

EP = AP X Y% = 12# X 0.90 = 10.8#

10.8# X 16 oz/# = 172.8 oz 172.8 oz ÷ 3 oz/guest = 57.6 or 57 guests

A chef serves 3 oz portion of sliced beets per customer She has 12# of AP beets in the walk-in, and Y% for sliced beets is 90% How many guests can she serve?

When calculating number of portions, always round down (Cannot serve a partial

portion.)

AP vs EP Cost

AP cost (per unit) = AP$

EP cost (per unit) = EP$

Because you pay for edible product and its trim/waste when you purchase, the true EP cost of an ingredient is not the same as its AP cost unless the product has 100% yield

AP$-EP$-Y% Graphic Formula

AP$

EP$ x Y%

Example 4g

AP$ = EP$ x Y% = $2.17/# x 0.96 =

$2.08/#

What is the AP cost/# for heirloom tomatoes budgeted at $2.17/# EP cost with a 96% yield?

Butcher’s Yield Test

Differs from basic yield test because large cut of meat has by-products of different values (like buying a bag of unlabeled cuts of meat, but you only know the total cost for the bag).

The Butcher’s Yield Test calculates EP weight and cost per # or oz.

Conducting Butcher’s Yield Test

1. Butcher a large cut of meat, keeping main item, by-products, and scraps in

separate piles Record weight of each pile on spreadsheet.

2. Calculate percent of total weight that each item represents.

3. Research on a purveyor’s price list the price per pound for each useable

by-product.

Conducting Butcher’s Yield Test

4 Calculate extension or total value of each by-product using the purveyor list price.

5 Calculate the value of the main item as total value of original cut minus value of all by-products.

6 Calculate cost per useable pound as value of main item ÷ weight of main item in pounds Divide result by 16 to get cost per useable oz.

Conducting Butcher’s Yield Test

7 Determine cost multiplier as cost per useable pound ÷ AP cost per pound

Cost multiplier (CM) allows chef to calculate cost per useable pound for this cut in

the future as AP cost/# changes

To calculate new cost per useable pound in future, multiply new AP cost/#

X CM

Example 4h

Item: Turkey; Grade A

Weight: 16# 4 oz AP price/#: $0.79/# Total Cost: $12.84

Step 1

% of total Step 2

Purchase price/#

Step 3

Total Value Step 4

Cost per useable #

Cost per useable oz

Cost Mult (CM)

Step 5

$1.75 Step 6

$0.11 Step 6

2.22 Step 7

Example 4i: Using the Cost Multiplier (CM)

Notes on Butcher’s Yield Test

• Cost per useable pound generates cost multiplier.

• Cost per useable ounce helps determine cost per portion (usually known in oz).

• CM allows chef to adjust cost/oz or # without redoing entire yield test.

Notes on Butcher’s Yield Test

• Reasons to redo test: the butcher’s skill has changed or the price of

by-products has changed significantly in relation to AP$ of whole cut.

• Test results are relevant only to that cut with same specs.

• Test allows chef to determine the better deal – butchering in-house or buying pre-fab.

Cooking and Trim Loss Tests

• Usually for large roasts

• Irrelevant for items sold by pre-cooked weight

• Cooking loss = oven-ready weight – cooked weight

Account for loss during cooking and during post-cooking portioning.

Tips to Minimize Cooking Loss

• Do not overcook

• Cook at low temp for longer time period

• Allow sufficient resting time before carving

• Consider brining to increase meat’s original oven-ready weight

Trim Loss

• Mirrors butcher’s yield test except that the roast is already cooked

• Portion available for service after trimming is called “saleable weight”

• If all trim is lost as “waste,” the test is similar to the yield test for produce.

• If trim is used elsewhere in the kitchen, the test is similar to the butcher’s yield test.

True EP$ = total cost ÷ saleable wt.

Useable Trim

If trim from portioning is used elsewhere in the kitchen, the value of the trim must be deducted from the total value of the oven-ready roast before calculating EP cost per pound (similar to butcher’s yield test process).

EP Cost Multipler

EP CM =

When AP$ per # changes:

EP$ per #   AP Value per #

New EP$ per # = EP$ CM   AP $ per #

from butcher’s yield test from butcher’s yield test

Cooking Loss Test Spreadsheet

• Total value of butchered wt and value/# come directly from butcher’s yield test

• EP total value must be adjusted with a “rebate” if trim is used elsewhere in kitchen

• All yield percents are in relation to total AP wt.

Review Figure 4.4 in the text Notice:

Final Notes

• Butcher, cooking loss, and trim loss tests are conducted for accuracy in

costing, but cost multipliers allow for adjustment to AP price fluctuations

without having to redo tests.

• Information is only relevant when AP cuts, how they are butchered, and the use of scraps all remain the same

• A chef will always save money by utilizing scrap and trim instead of trashing it.