MAKE OR B

UY ANALY

SIS

MAKE OR BUY DECISION

Use to decide if an operation should make an item from scratch or buy a ready-made version.

Analysis helps to balance how much food a kitchen produces with the quality standards of the operation.

Ready-made advantages:

Consistency

Reduced prep & labor costs

Reduced needs of equipment & storage space.

But ready-made products cost more money than items that must be prepared, and such items may also have other drawbacks. Decide what benefits you.

REASONS FOR MAKING

• Cost concerns• Need of direct control

over the product• Quality control

concerns• Supplier unreliability

• Volume too small to get a supplier attracted

• Political and environment reasons

• Organizational pride

REASONS FOR BUYING

• Lack of technical experience

• Supplier's expertise on the technical areas and the domain

• Cost considerations• Need of small volume• Insufficient capacity

to produce in-house• Brand preferences• Strategic

partnerships

Newman's Own Marinara Sauce24-oz jar

TOTAL: $2.99PER 4-OZ SERVING: $0.50

Make your own:

TOTAL: $4.06PER 4-OZ SERVING: $1.02

MAKE OR BUY? : TOMATO SAUCE

Pepperidge Farm's Frozen Puff Pastry Sheets from Peapod Online Grocery

TOTAL: $4.69

PER OUNCE: $0.27

Prep Time: 30 min.

Homemade:

16 oz Package

TOTAL: $2.00

PER OUNCE: $0.13

MAKE OR BUY? PUFF PASTRY

Swanson's Natural Goodness Chicken Broth

TOTAL: $2.99 for 32 oz

PER 1 CUP SERVING: $0.75

Homemade:

TOTAL: $8.58 for (roughly) 4 qts.

PER 1 CUP SERVING: $0.54

MAKE OR BUY? CHICKEN STOCK

Sara Lee New York Style CheesecakeTOTAL: $8.49PER SLICE (6): $1.42

Original Cheesecake from The Cheesecake FactoryTOTAL: $23.95PER SLICE (8): $2.99

Homemade:

TOTAL: $13.13

PER SLICE (12): $1.09

MAKE OR BUY? : CHEESECAKE