Controlling Food Cost in Production

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Controlling Food Cost in Production
7

• Controlling Foodservice Costs

OH 7-1
2
Chapter Learning Objectives

• Develop a food production chart.
• Describe how a waste report helps control food
  costs.
• Use a conversion factor to calculate a new yield
  for an existing recipe.
• Determine a recipes yield and the number of
  portions it will produce.

3
Controlling Food Cost in Production

• Two of the the standards and controls
• Standardized Recipes
• Production sheets

4
Monitoring Standards

• Tasting foods regularly is one way to ensure
  standards are met. The use of standardized
  recipes is another.

5
Food That Does Not Meet the Restaurants
Standards

• Should not be served
• Should be salvaged (all or part), if possible
• Should be discarded if not salvageable
• Increase costs
• Reduce profits

6
Questions to Ask When Food Fails to Meet
Standards

• Is the recipe clearly written?
• Did the cook understand the recipe?
• Are ingredients used in the recipe clearly
  labeled?
• Are the appropriate ingredients in the proper
  containers? (Do ingredients in containers match
  the containers labels?)

7
Determining Quantity to Produce

• Accurate production schedules are important
  because
• Overproduction causes excessive leftovers
  waste.
• Underproduction causes production shortages
  unhappy customers.
• Both situations reduce profits!

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What Influences the Number of Guests You Can
Expect?

• Weather
• Competition
• Special Events
• Hotel Occupancy

• Promotions
• Quality of Service
• Operational Consistency

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To Ensure Proper Production
Shows how much product should be produced by the
kitchen during a given meal period.
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Menu Formats

• Static Menu - A menu that is printed and recited
  by service staff. Fixed menu day after day.
• Daily Menu - A menu that changes every day.
  Popular in upscale restaurants.
• Cycle Menu - A menu that is in effect for a
  specific time period and typically repeats on a
  regular basis.

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When Using Production Charts

• Prepare an estimate of the of guests to be
  served.
• Indicate the actual of items to be produced.
• Ensure the required standardized recipes are
  readily available.

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Calculating Portions

• Percentage of total number sold.

• Number of a Specific Menu Item Sold of
  Total Number of All Menu Items Sold sold

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Calculating Portions

• Multiply the percentages by the guest forecast to
  predict menu item portions.

• Number of Guests Expected x of Number Sold
• Predicted Number Portions

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Activity - page 115

• Baked turkey with cornbread
• Roasted pork tenderloin
• Blackened redfish
• Roast prime rib of beef
• Macaroni and cheese
• Firehouse spaghetti
• Parmesan chicken
• Chicken enchilada
• Cha-cha chicken
• Coconut shrimp

127 portions
85 portions
56 portions
136 portions
66 portions
80 portions
91 portions
57 portions
72 portions
80 portions
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Sals Steakhouse served 1,565 guests on Friday
night. 420 of those guests selected marinated
chicken breast, 377 chose salmon, 403 ordered
prime rib, and 365 selected strip steak. What is
the chickens percentage of number sold?
Calculating Portions

• 420 of chicken
• 1565 total menu items

26.8 of sold
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Based on his guest estimates, Sal is expecting
1,750 guests for Saturday night. If the
percentage of number sold for the chicken is
26.8, how many should his production staff be
instructed to prep?
Calculating Portions
0.268 ( of number sold) x 1750 (estimated guest
count) 469 chicken breasts expected to be
sold
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Food Production Charts

• Created by studying sales histories
• The best predictor of what guests will buy in the
  future is what they purchased in the past.
• Kept for at least 2 years
• Created based upon managements estimate of
  future sales and guest count.

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Estimate of Future Sales

• Sales Last Period Sales
  Last Period
• x Increase Estimate Increase
  Amount
• Increase Amount
  Revenue Estimate

OR use the shortcut Sales Last Period x (1
Increase Estimate) Revenue Estimate
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Sales for Barrys Bagels for September were
32,672. He predicts his sales will increase by
7 for October. What will be Barrys increase
amount? What will be his total revenue estimate?
Estimate of Future Sales

• 32,672 x 0.07 2,287.04 increase amount
• 32,672 2,287.04 34,959.04 revenue estimate

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Estimate of Future Guest Count

• Guests Last Period Guests
  Last Period
• x Increase Estimate Increase
  Amount
• Increase Amount
  Guest Count Estimate

OR use shortcut Guest Count Last Period x (1
Increase Estimate) Guest Count Estimate
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Barry also forecasts that his guest count for
October will be 4 higher than in September. His
guest count for September was 3,250. What will be
the guest count estimate?
Estimate of Future Sales

• 3250 x 1.04 3380 guest count
  estimate

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Waste Reports

• Critical to food cost control
• Easily completed
• Should be maintained for each shift
• May indicate
• Where training is needed
• Production concerns that require attention

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Sample Waste Report
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Analysis of Waste Reports

• Determine why each item had to be discarded.
• Develop a strategy to prevent similar future
  losses.
• Share findings with those who need to know.

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Recipe Conversions

• Step 1 Compute the Conversion Factor
• Current yield, fifty portions
• Desired yield, forty portions
• Example

26
Recipe Conversions continued

• Step 2 Convert ingredients into units that can
  be easily multiplied or divided.
• Convert weights to ounces.
• Convert cups, pints, and quarts to fluid ounces.
• Example

27
Recipe Conversions continued

• Step 3 Multiply each ingredient by the
  conversion factor.
• Example

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Recipe Conversions continued

• Step 4 Convert ingredient amounts back to
  normally used units.
• Example

8 ounces in a cup
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The standard recipe for rhubarb pie at Rebeccas
Pie Shop calls for 6 cups of raw rhubarb and
yields 3 pies. Rebecca wants to make 9 pies.
Using the factor method, how many cups of rhubarb
will Rebecca need?
Recipe Conversions continued

• 9 pies Desired Yield

3 Conversion Factor
STEP 1
3 pies Current Yield
6 c. x 8 oz. 48 oz.
STEP 2
3 C.F. x 48 oz. 144 oz.
STEP 3
144 oz 8 oz. 18 cups
STEP 4
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Common Conversions

• 1 c 16 tbsp
• 8 oz
• 1 gal 4 qt
• 1 oz 1/8 c
• 2 tbsp

• 1 pt 2 c
• 1 qt 2 pt
• 32 oz
• 4 c
• 1 tbsp 3 tsp

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Activity - page 120
90 portions desired 50 recipe yield 1.8
Conversion Factor

• Chicken
• Butter
• Green pepper
• Mushrooms
• Pimentos
• Heavy cream
• Egg yolks
• Salt
• Sherry

230.4 oz 28.8 oz 21.6 oz 28.8 oz 25.2
oz 172.8 oz 21.6 ea 7.2 tsp 57.6 oz
14.4 14 lbs 1.8 1.75 lbs 1.35 1 lb 6 oz 1.8
1.75 lbs 1.575 1 lb 10 oz 5.4 1 gal 3 pt
22 each 2 tbsp 1 tsp 1.8 1 qt 3 c
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Determining Recipe Yield

• Recipe yields must be known for
• Accurate costing of menu items
• Effective production planning
• Standardized recipes

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Determining Recipe Yield

• Compute the total volume of the recipe by weight
  or volume.
• Weigh or measure only the major ingredients.
• Account for cooking loss, especially for
• Meats
• Vegetables
• Fruit

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Activity - page 123

• Corned beef
• Potatoes
• Onions
• Butter
• Beef Stock
• Salt
• Pepper
• Parsley

Major ingredients 48 32 16 32 128
oz 128 5 oz portions 25.6 or 26 portions
1.5 x 32 48 oz 1.5 x 32 32 oz 0.5 x 32 16
oz 0.25 x 8 2 oz 1 x 32 32 oz 1 x 0.05 0.5
oz To taste As needed
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Activity - page 124, problems 1-4

• 1 c roux 8 oz
• 1 gal milk 128 oz
• 1 qt crabmeat 32 oz

1) 8 128 32 168 oz total volume of this
recipe 2) 168 oz 7 oz portion 24 servings
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Activity - page 124, problems 1-4

• 28 oz desired 168 oz recipe yield 0.17
  conversion factor
• 1 c roux
• 1 gal milk
• 1 qt crab

8 oz x 0.17 128 oz x 0.17 32 oz x
0.17
1.36 oz (1.36 oz 0.5 oz) 3 tbsp 21.76
oz (21.76 oz 8 oz) 3 cups 5.4 oz (5.4 oz
0.5 oz) 11 tbsp
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How Would You Answer the Following Questions?

• It (is/is not) possible for a cook using a
  standardized recipe to create a substandard menu
  item.
• Waste reports indicate when employees overportion
  and waste food. (True/False)
• How many steps does the recipe conversion process
  have?
• Three
• Four
• Five
• Six
• A recipe (yield/portion conversion) test is a
  calculation of the number of portions produced by
  a standardized recipe.

38
Key Term Review

• Conversion factor
• Food production chart
• Recipe conversion
• Recipe yield
• Taste test
• Waste report

39
Chapter Learning Objectives What Did You Learn?

• Develop a food production chart.
• Describe how a waste report helps control food
  costs.
• Use a conversion factor to calculate a new yield
  for an existing recipe.
• Determine a recipes yield and the number of
  portions it will produce.