REDUCING FOOD COSTS

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REDUCING FOOD COSTS
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Reduce Food Cost

• If you are running a deficit, what is the
  problem?

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Reduce food costs

• The percentage of the schools revenue spent on
  food shouldnt be greater than the established
  standard (around 40 ideally)

• THIS COULD BE THE PROBLEM!

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How do I Determine the Percent of Food Cost?

• 1. First, determine your Revenue
• Revenue is any income to the program, such as
  paid and reduced price breakfasts/lunches

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Revenue

• Federal Reimbursement
• Adult meals
• Ala Carte Sales
• Other Income Etc.

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Determine the of Food Cost

• What of the revenue is food cost?

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Determination of Food Used

• Calculation to arrive at
• value of Food Used
• Beginning Inventory Purchased Food and Milk
  Received
• Value of Food Available MINUS
• Ending Inventory
• VALUE OF FOOD USED

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FOOD COST

• Value of Food Used divided by Total Revenue
  Percent of Income

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LABOR COST

• Since Total Revenue has been established the
  percent of income can be determined. (Ideally
  around 40)

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LABOR COSTS

• Total Labor Costs including fringe benefits
• Divided by Total Revenue
• of income for labor costs

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How Can We Lower Food Costs

• Lets divide into groups
• Take five minutes and come up with five ways to
  lower food costs
• Discussion

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WAYS TO REDUCE FOOD COSTS

• Is Participation down? If so, why?
• Do a usage survey- determine which items are slow
  movers and need to be removed from the menu.
• Participation takes care of a lot of problems

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WAYS TO REDUCE FOOD COSTS

• Involve employees in reducing costs- listen to
  their ideas
• Be certain that recipes are being used and that
  forecasted numbers are realistically close to the
  number served

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WAYS TO REDUCE FOOD COSTS

• Check the use of leftovers
• Watch seasonal prices of produce and change the
  ingredients used in salads and fruit and
  vegetable choices accordingly

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WAYS TO REDUCE FOOD COSTS

• Check prices of using bulk condiments over
  portion control items
• Check foods that are served free-are they for
  authorized personnel only?

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WAYS TO REDUCE FOOD COSTS

• Be certain students can readily refuse foods on
  serving line
• Supervise portion control and take corrective
  action
• Cost out self service bars. Determine if setup is
  encouraging selection of higher cost items

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WAYS TO REDUCE FOOD COSTS

• Check the point of sale (cashiers) to make
  certain customers are charged properly

• Determine if food is being wasted during
  preparation by overcooking, failure to batch
  cook, preparing too heavily

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WAYS TO REDUCE FOOD COSTS

• Determine if produce and other foods are becoming
  outdated.
• Are there poor storage practices and improper
  temperatures?

• Are bowls and cans scraped clean?
• Put a five gallon bucket in kitchen for all food
  waste. This will bring attention to waste

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WAYS TO REDUCE FOOD COSTS

• Check to see if commodities are being used
  effectively
• Locate cashier at exit where they can see whole
  line

• Put prepackaged a la carte items where they can
  be seen

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WAYS TO REDUCE FOOD COSTS

• Have a good inventory of what is put on the
  serving line or in a snack bar and check against
  sales
• Do not allow leftovers to be taken home

• LIMIT KEYS TO STORAGE AREA

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WAYS TO REDUCE FOOD COSTS

• Keep storeroom locked as well as back door
• Have a policy regarding people behind line
• Do not give keys to delivery people

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WAYS TO REDUCE FOOD COSTS

• Do not allow early morning deliveries left on
  dock
• Check food supplies when delivered. Sign invoice
  (Prices and Product)