Ch03 CostControl Final.ppt

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  • 5/28/2018 Ch03 CostControl Final.ppt

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    OH 3-1

    Using Standardized Recipes toDetermine Standard Portion Cost

    Controlling Foodservice Costs

    3

    OH 3-1

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    OH 3-2

    Chapter Learning Objectives

    Explain why a standardized recipe is importantfor cost control and product consistency.

    Describe information included in a standardized

    recipe.

    Compare as purchased and edible portionmethods in determining the cost of recipe

    ingredients.

    Develop a recipe cost card using a standardizedrecipe.

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    Standardized RecipesEnsure Consistency In

    Ingredient quality

    Preparation method

    Portion size

    Service method

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    Standardized Recipes Identify

    Ingredient details (quality)

    Ingredient weights and measures

    Necessary equipment and tools

    Volume (number) of portions

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    Standardized Recipes also Include

    Preparation time

    Storage and preparation information

    Cooking method(s)

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    Sample Standardized Recipe

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    Standardized Recipes

    Allow for accurate purchasing

    Help ensure compliance withTruth In Menu laws

    Assists in training new employees

    Makes it possible to cost the recipe accurately

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    Recipe Ingredient Costing Alternatives

    As Purchased (AP) method

    Price of an item beforeany trim or wasteare considered

    Exampleunpeeled, whole potatoes

    Edible Portion (EP) method

    Price of an item afterall trim and waste has been

    taken into account

    Examplepeeled, cubed potatoes

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    AP and EP

    As Purchased (AP) refers to products as therestaurant receives them.

    Edible Portion (EP) refers to products as theguests receive them.

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    Comparison of AP and EP Weights

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    Managers Must

    1. Determine if recipeingredients arelisted in AP or EPformats.

    2. Apply the correctcosting method tothe ingredients.

    3. Use the informationto price menu items.

    4. Periodically re-costrecipe ingredients.

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    EP Amounts

    Because many fooditems shrink whenthey are cooked,managers must knowexactly how muchcooking loss toexpect.

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    Ways to Estimate Yields

    Butchers tests

    To measure loss from deboning, trimming, andportioning 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)

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    Creating Recipe Cost Cards

    Step 1

    Copy the ingredients from thestandardized recipe card to the cost card.

    Step 2List the amount of each ingredient used.

    Step 3Indicate the cost of each ingredient aslisted on the invoice.

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    Creating Recipe Cost Cards continued

    Step 4

    Convert the cost of the invoice unit tothe 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)

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    Creating Recipe Cost Cards continued

    Step 5

    Multiply the recipe unit cost by the amountrequired in the recipe.

    Example

    Recipe amount required3 pints

    Cost per pint$0.35

    Ingredient cost$1.05(3 pints x $0.35 per pint = $1.05)

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    Creating Recipe Cost Cards continued

    Step 6

    Add the cost of all ingredients.

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    Creating Recipe Cost Cards continued

    Step 7

    Divide the total recipe cost by the numberof portions produced.

    Example

    Total recipe cost$145.50

    Total recipe yield50 portions

    Cost per portion$2.91

    ($145.50 50 portions = $2.91 per portion)

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    How Would You Answerthe Following Questions?

    1. The cost of most AP food products is higher than theirEP cost. (True/False)

    2. Which of the following is NOT true about recipe costcards?

    A. They help establish menu selling prices.

    B. They reduce food production time.

    C. There should be one for every menu item.

    D. They inform managers about how much it costs tomake a single portion of an item.

    3. Software programs designed to help foodservicemanagers create recipe cost cards are readilyavailable. (True/False)

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    Key Term Review

    As purchased (AP) method

    Butcher test

    Conversion chart

    Cooking loss test

    Edible portion (EP) method

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    Key Term Review

    Portion size

    Recipe cost card

    Shrinkage

    Standard portion cost

    Standardized recipe

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    Explain why a standardized recipe is importantfor cost control and product consistency.

    Describe the information included in a

    standardized recipe.

    Compare as purchased and edible portionmethods in determining the cost of recipe

    ingredients. Develop a recipe cost card using a standardized

    recipe.

    Chapter Learning ObjectivesWhat Did You Learn?