Cost Recipes

1. Cost Recipes

2. Objective • Describe the need for and use of basic costing procedures: • Purposes and Benefits • Costing Recipe Ingredients • Costing Standard Recipes • Calculating Plate Cost • Calculating Buffet and Salad Bar Costs • Three Additional Concerns

3. Standard Recipes Help Achieve Two Goals • The consistent quality of products desired by guests is best assured. • Menu items will always cost the same. There will be no variation between the amount of ingredients required and the amount actually used so the menu item’s food cost can be calculated.

4. Accurate Recipe Costing Benefits Kitchen Managers • When menu item costs are considered when menus are planned, they can determine if items can be produced at the desired quality level and still yield the desired contribution margin (selling price – product cost). • They can evaluate the items being offered on “help yourself” buffets and salad bars. • They can establish menu item selling prices.

5. Menu Item Pre-Costing Can Be Simple *There are four quarts in one gallon: 2 qts ÷ 4 qts x $4.75 = $2.38

6. Recipe Costing Worksheet Recipe: Chicken Tetrazzini Yield: 48 servings Serving Size: 1/24 (12" x 20" x 2" pan)

7. Calculating the Cost of One Serving

8. Calculating Plate Cost Entrée: Fresh White Fish Dinner Costing Date: 8/03/20xx Total Entrée and Accompaniments Cost $6.89

9. How To Make Food Costing Successful • Standard recipes including serving sizes must be followed. • Standard recipes must be costed with current ingredient costs. • The per-serving costs of all food component alternatives cannot be exceeded.

10. Costing Sheet for Self-Service Items

11. Technology And Recipe Costing • Recipe management software – Written programs, procedures, instructions, or rules relating to the operation of a computer system that involves or impacts standard recipes. • Ingredient file – Contains information about each ingredient purchased including purchase unit size and cost, issue unit size and cost, and recipe unit size and cost • Standard recipe file – Contains menu item recipes including ingredients, preparation method, yield, ingredient costs, and each item’s selling price and food cost percentage . • Menu item file – Provides information about menu items tracked with the POS system.

12. Calculating Base Selling Price • Step 1: Determine the selling price multiplier by dividing the budgeted food cost percentage into 100% ($1.00). • Step 2: Determine the menu item’s base selling price by multiplying the estimated food cost by the selling price multiplier.

13. Tactics To Reduce Food Costs For “Help-Yourself” Items • Pre-portion items onto small plates or into small bowls. • Cut chicken into quarters rather than halves. • Separate items such as meatloaf slices so items do not stick together. • Serve “small” cookies rather than larger-sized servings. • Replenish self-service stations with less food more frequently. • Use the correct-sized serving utensils. • Signage can be used to remind guests that they may return to the self-service unit for additional servings.