Foundations of cost control by daniel traster chapter05

The Costing Sheet• AP$ for each ingredient • EP$ for any item requiring a butcher’s test The goal of the costing sheet is to determine the total recipe cost and cost per portion... Cos

Class Name

Instructor Name

Date, Semester

Foundations of Cost Control

Recipe Costing

chapter 5

The Costing Sheet

• AP$ for each ingredient

• EP$ for any item requiring a butcher’s test

The goal of the costing sheet is to determine

the total recipe cost and cost per portion

Costing Sheet: Heading

• Recipe Name

• Number of Portions (Yield) for the recipe

• Cost per Portion (calculated in the costing

sheet)

• Spice Factor and Q Factor

• FC% and Selling Price (covered in next

chapter)

The costing sheet heading includes the

following:

Sample Costing Sheet before

chopped 2 Tbsp 1 bun = 8 Tbsp $0.72/bun

Salt/Pepper To taste To taste Spice

Factor

Converting Units in Costing Sheet

Units in “price per unit” must match the units in the ingredient list.

Invoice units and ingredient units don’t often match.

Common Invoice Pricing

Invoices often list prices per case size, which may be broken down as number of units in a

case and size per unit.

Making Invoice Pricing Useable

1) Calculate total weight or volume as:

Total wt = number of units X weight per unit

2) For volume, substitute volume for weight 3) Next, calculate AP$ (per unit) as:

AP$ = total cost ÷ total weight (or vol.)

Example 5a

6# 6oz = 102 oz Total wt = units X wt/unit =

Example 5b

1 Gal = 16 cups

Total vol = 4 units X 16 c/unit = 64 cups

Cost/unit = cost ($31.80) ÷ vol (64c)

=$0.497/c Vinegar costs $31.80 for 4/1Gal What is the cost per cup?

Possible Complications in Unit Conversion

1 Weight listed on can is not the same as

product’s drained weight

• Solution: test a can and use the drained weight for

the calculation.

2 Container measures contents in weight but

recipe measures in volume or vice-versa

• Solution: Open container to measure volume (or

weight) and use this figure for calculations.

Note: In both cases, Y% is accounted for by

test, so Y% becomes 100% on costing sheet.

See Figure 5.1b

Calculating EP$ for Costing Sheet

• Y% in decimal form.

• Only use AP$ with units that match the

ingredient’s units.

• For items from a butcher’s yield test, just

enter the EP$ from the test and convert to units that match the ingredient’s units.

• For items with Y% = 100%, AP$ = EP$

See Figure 5.1c

Calculating Extended Costs or “Extension”

Extension = Ingredient Quantity x

EP$/unit

See Figure 5.1d

Extended cost or extension is the total

amount of money that each ingredient contributes to the total cost of the recipe

Total Recipe Cost

Cous Cous Recipe: Part II

Recipe: Cous Cous with Carrots and Raisins

diced 4 oz 77% $0.68/# $0.043/oz $0.056/oz $0.224

Raisins 4 oz 100% $4.37/# $0.273/oz $0.273/o

z $1.092Chicken

Stock 16 oz 100% $0.84/Qt $0.026/oz $0.026/oz $0.416

Parsley,

chopped 2 Tbsp 1 bun = 8 Tbsp $0.72/bun $0.09/Tbs $0.09/Tbs $0.18

Salt/Pepper To taste To taste Spice

Factor S.F S.F.TOTAL $4.01N/A

2

Spice Factor (S.F.)

• Adjusts recipe cost for ingredients like spices,

herbs, and seasonings.

• Each operation decides what ingredients are

included in Spice Factor.

• Saves time on costing each spice or herb

separately in a recipe.

• Allows for seasoning “to taste.”

Spice Factor S.F.)

• Divides cost of spices and seasoning across

all dishes rather than making heavily spices ones extremely expensive.

• Can be used to account for garnishes and

“reject” dishes returned by customer

• Can be applied either to recipe’s total cost or

to cost per portion

Determining the Spice Factor

1 Decide which items will be included in spice

factor Calculate cost spent on those items over a period of time.

2 If desired, include value of “reject” or ruined

dishes over the same period.

S.F = value of S.F items ÷ value of total food purchases (over the same period)

Adjusting Recipe’s Cost Using S.F.

SF-adjusted recipe cost =

Recipe Cost x (1+S.F in decimal form)

• Use this equation on all recipes regardless of

spice or herb use

• If dish contains multiple components, adjust

each recipe for SF

Example 5d

SF-adjusted cost = recipe cost X (1+SF)

= $27.72 X (1 + 0.022) =

$27.72 X 1.022 = $28.33

A recipe’s total cost is $27.72 SF = 2.2% What is the SF-adjusted cost for the recipe?

Q Factor

• Applies only to entrées

• Accounts for add-ons, side dishes, or other

“freebies” that come with an entrée

• Added (not multiplied) to the entrée price

Process to determine Q Factor

1 Complete costing sheet for all possible

add-ons (soup, salad, bread, butter, dessert,

etc.), if any, that come with the purchase of

an entrée.

2 Select the most expensive cost per portion

among each set of choices the customer

gets.

Why Q Factor?

• If guest orders the most expensive add-ons

with his/her dish, the cost is covered in the entrée’s cost (and thus, sales price).

• If guest chooses cheaper add-ons, the

restaurant realizes extra profit.

Example 5e

Chicken Noodle Soup = $0.58

Cream of Broccoli Soup = $0.53

Example 5e (cont.)

• Most expensive choice for soup or salad is

Spinach Salad at $0.97.

• Bread is $0.12 and butter is $0.08

Q Factor = total of most expensive

choices = $0.97 + $0.12 + $0.08

= $1.17

Calculating True Cost Per Portion

For an entrée, the true cost per portion is

the dish’s cost per portion + Q Factor

To Calculate True Cost Per Portion from a Costing Sheet

1 Divide total recipe cost by the recipe’s yield

Cost per portion =

total recipe cost ÷ number of portions

2 Multiply cost per portion X (1+SF) to get

spice factor adjusted cost per portion (This

is true cost per portion for non-entrées).

3 If applicable, add Q Factor to get the true

cost per portion for an entrée

Example 5g

Cost per portion

= recipe cost ÷ yield

Entrée recipe serves 36 portions and costs

$138.96 total Spice factor is 2.6% and Q Factor is $2.78 What is true cost per

portion for this dish?

Example 5g (cont.)

True cost per portion

= SF adjust cost per portion + Q Factor

= $3.96 + $2.78

= $6.74

Cous Cous True Cost Per Portion

Recipe: Cous Cous with Carrots and Raisins

SF adjusted cost per portion ($0.502 X (1+0.031)) $0.518

Q Factor – would be added to an entrée, but not relevant

for a side dish, so True Cost per portion = SF adjusted cost

per portion

$0.518

Summarized Costing Process

Summarized Costing Process

Summarized Costing Process (cont.)

Standardized (or standard) recipe is a recipe written in

sufficient detail that a range of cooks could prepare it as written and the results would be identical It is the recipe that all cooks in the kitchen must follow when preparing a given dish

Why Use Standardized Recipes?

• Critical to maintaining consistency for guests.

• A must if costing sheets are to be relevant to

the dish’s actual cost in the kitchen.

• They are the source for the ingredient

quantities used on the costing sheets.

• They are a control tool – chefs may:

― post them prominently

―distribute computerized

―yield-adjusted versions daily

―and/or oversee production closely to confirm compliance

Portion and Quality Control

• Critical to meet guest expectations, which

prevents customer and revenue loss.

• Keeps recipe costing accurate, which

prevents excessive food cost and thus, profit loss.

• Often monitored by expediter or sous chef

per the chef’s standards.

• Portion control often allows a very small

variance (+/- ¼ oz) to account for the real world.

Tools to Monitor Portion Size

Weight : Spring, beam, or digital scales

Volume : Measuring cups, ladles, portion scoops,

ramekins, kitchen or slotted spoons (somewhat imprecise), or serving containers

(like a coffee cup or beer mug)

Count : The human eye to count by hand No variance

is acceptable for portion by count.

Quality Control

Examples of quality errors:

•undercooked food

•incorrect garnish

•wilted or unattractive components

•sloppy plate presentation

•error on guest’s special request

The expediter should catch and correct errors before they reach the customers