ABOUT THE PORTION COST

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ABOUT THE PORTION COST

• CHAPTER 3

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LEARNING OBJECTIVES

• Calculate the Cost per Portion for Recipes
  Plate Cards.
• Use Butcher Tests and Cooking Loss Tests to
  calculate the Cost per Portion for menu items
  with shrinkage and trim.
• Determine Q Factors Spice Factors for menu
  items.
• Use the Menu Pricing Formula to perfect portion
  costs.
• Use the Triangle of Enlightenment to calculate
  food cost percentages, determine sell prices,
  and compute product costs.

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CAUSES OF INACCURATE PORTION SIZES

• No standardized recipes, or recipes exist, but
  they are not used
• Poorly written standard recipes
• No standard portion size on recipe
• Inadequate equipment to portion correctly
• Lack of or improper equipment
• Not a management priority
• Supplier price increases
• Poor purchasinglack of research of costs

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PORTION COSTING OPTIONS

• RecipesUsed for menu items with multiple
  ingredients and little or no shrinkage or trim.
• Plate Cost CardsUsed to cost one completed meal
  as it is served to the guest.
• Butcher TestUsed for costing menu items that
  have loss due trimming.
• Cooking Loss TestUsed for menu items that will
  experience shrinkage and final trimming during
  the cooking process.

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RECIPE COST CARDS

• DEFINITION a form used to calculate the cost of
  one serving of a specific menu item using the
  approved standardized recipe to produce it.

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• RECIPE COSTING GROUND RULES
• To cost accurately, recipe units must agree with
  purchasing units.
• Always round up to the next penny.
• Rounding should only be done at the end of an
  equation rather than at every breakdown.
• Ignore spices, herbs, and ingredients that are
  difficult to cost out.  These will be accounted
  for with the Spice Factor.

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COST CARD INFORMATION

• Recipe name
• Date when priced
• Number of portions
• Portion size
• Type of recipe

• File code reference
• Cost per Portion
• Spice Factor percentage
• Q Factor, if used.
• Standard food cost percentage

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RECIPE COSTING HOT TIPS

• When recipe units purchasing units are not
  compatible, break the purchasing unit into a unit
  compatible with recipe units.
• When recipe units purchasing units match, just
  transfer the cost information.
• Round up only at the end of your work versus at
  every step of the way.
• Write the Spice Factor line like this
•  COST PER PORTION ? 1.SF TRUE COST PER
  DISH
• 5. Rename the Q Factor the Smashed Potato
  Factor to remember to only add the Q Factor to
  entrée items offered with the semi-à-la-carte
  pricing structure.

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• 6. The cost is always going up.
• 7. The Q Factor has to be added on before the
  Spice Factor.
• 8. Always write out the formula line-by-line,
  as demonstrated. Resist the temptation to write
  the computation in one string.
• 9. One line takes you right to the next so
  dont clear your calculator after each
  calculation.
• 10. For the most accurate results, run the
  figures without rounding at each line. The final
  answer is the place to round.

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FORMULAS TO EXTEND RECIPE INGREDIENT COSTS

• QUANTITY X UNIT PRICE EXTENDED
• PRICE
• EXTENDED PRICE / YIELD COST PER
• ________

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TRY YOUR HAND

• RECIPE CALLS FOR INVOICE COST RECIPE COST
• 8 lb. of carrots 17.50/25 lb. bag of
  carrots 17.50/25 .70 per lb.
•  
• 2 pt. of half half 3.69/½ gal. of half
  half 3.69/2 1.85 per pint
•  
• 1 c. of milk 2.25/1 gal. of milk 2.25/16
  (cups/gallon) .15
•   20 lb. of potatoes 14.50/50 lb. bag of
  potatoes 14.50/50 lbs. .29 per lb.
•  
• 4 lb. of butter 81.00/36 lb. case of
  butter 81.00/36 2.25 per lb.
•  
• 2 - 10 cans of tomatoes 36.50/6 - 10 cans
  tomatoes 36.50/6 cans 6.09/can
•  

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CHICKEN NOODLE SOUPEXTENSIONS

• QUANTITY X UNIT EXT.
• PRICE PRICE
• Stock 1½ gals. ? 2.00/gal. 3.00
• Chicken breast 1½ lbs. ? 2.25/lb. 3.38
• Egg noodles 1¼ lbs. ? 1.70/lb. 2.13
• Onions ½ lb. ? .30/lb. .15

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AS PURCHASED (AP) EDIBLE PORTION (EP)

• AS PURCHASED
• Definition All products received at the door
  Raw product as purchased from the supplier.

• EDIBLE PORTION
• Definition A food product processed in some
  way the portion of food as served to the guest.

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AP, EP AND RECIPES

• Generally, recipes are recorded in EP quantities.
• The AP amount of product in a recipe should yield
  the EP quantity needed for the recipe.
• Failure to account for the EP cost of product
  affects portion costs, selling prices
  purchasing quantities.
• Example Onions from Chicken Noodle Soup
• 8 oz. EP / 87 (Yield onions) 9.19 oz. AP
• Onions .30/lb.
• Cost EP .15 (16 oz.) Cost AP .17 (9.19 oz.)

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SPICE FACTOR

• Definition a percentage added to every menu
  item to account for spices, herbs, garnishes,
  expensive ingredients waste.
• To use SF Cost per Dish x 1.SF TCPD
• It is added to every menu selection.
• To find Spice Factor
• COST OF SPICE FACTOR ITEMS SPICE FACTOR
• TOTAL FOOD PURCHASES

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Q FACTOR

• Definition the Cost per Portion of the
  surrounding items included in a meal.  
• Used with semi-a-la-carte pricing method.
• It is found by adding the most expensive
  selections offered with an entrée.
• It is added to the cost per portion prior to
  adding the Spice Factor.
• It is only used with entrees.
• It is a dollar value.
• See Figure 3 3 for an example of a Q Card.

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• MINIMUM MENU PRICING FORMULA
• QUANTITY X UNIT PRICE EXTENDED PRICE
• EXTENDED PRICE/YIELD COST PER PORTION (CPP)
• COST PER PORTION Q FACTOR COST PER DISH (CPD)
  
• COST PER DISH ? 1.SF TRUE COST PER DISH
  (TCPD)
• TCPD/ STANDARD FOOD COST MIN. MENU PRICE

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FINDING MMP FOR CHICKEN NOODLE SOUP

• EXTENDED PRICE / YIELD CPP
• 10.00 / 25 .40
• COST PER DISH X 1.10 (SF ) TCPD
• .40 X 1.10 .44
• TCPD / FOOD COST MMP
• .44 / .30 1.47

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FINDING MMP FOR THE CHILI DOG

• COST PER DISH X 1.SF TCPD
• .71 X 1.10 .781
• TCPD / FOOD COST MMP
• .781 / .30 2.37

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BUTCHER TESTS

• Determines what is actually servable after
  trimming.
• Used to analyze product yield, calculate waste
  percentages, calculate portion costs, compare
  supplier costs.

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YIELD PERCENTAGES

• PART weight of specific item trimmed.
• WHOLE weight of item as purchased (AP).
• YIELD how much of the whole is left to sell
  to a guest as a specific menu item.
• WASTE how much of the whole is not saleable.

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COST PER PORTION IS TOO HIGH!

• Study the recipe or plate card for product
  substitutions or new products that decrease the
  portion cost but do not significantly change the
  item.
• Decrease the portion size.
• Rearrange the plate presentation while decreasing
  the portion size 7 give the item a new name.
• Purchase a lower quality product.
• Confer with employees or input in identifying
  ways to eliminate waste or change a procedure
  that increases yield or decreases cost.

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YIELD WASTE

• YIELD PART/WHOLE
• 100 - YIELD WASTE

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Cost s
Sales s
Cost
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FORMULAS

• COST / SALES COST
• SALES / COST COST
• COST / COST SALES

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CHAPTER CHECK

1. How are portion costs for menu items determined?
2. Why use a Butcher Test? A Cooking Loss Test?
3. What is Yield ? A Waste ?
4. How can high portion costs be managed?
5. What are the primary uses for the formulas in the
   Triangle of Enlightenment?