Calculations and Controlsfor the Garde Manger

© 2007 Thomson Delmar Learning. All Rights Reserved.

Chapter 2

Converting Metric and U.S. Standard Weights

• 1971—Department of Commerce recommended the U.S. convert to metric

• 1975—President Ford signed into law the Metric Conversion Act

• Today—90% of world nations use metric system

Metric System

• A decimal system based on the number 10

• All measurements are multiples of 10

• Standard rules for amounts of units through the use of prefixes

• Units of measure have specific names

Metric System

• Prefixes– Example:

• 1 meter = 10 decimeters = 100 centimeters = 1,000 millimeters

– 1 decimeter = 0.1 meter– 1 centimeter = 0.01 meter– 1 millimeter = 0.001 meter

Metric System

• Units of Measure– Meters represent length– Grams represent mass or weight– Liters or cubic meters represent

volume– Degrees Celsius represent

temperature

Converting Temperatures

• Metric System– Celsius Scale

• Water boils at 100°C and freezes at 0°C

• U.S. Standard Measurements– Fahrenheit Scale

• Water boils at 212°F and freezes at 32°F

Converting Temperatures

• Degrees Celsius– Subtract 32 from the given

Fahrenheit temperature and multiply the result by 5/9 or 0.56

• Degrees Fahrenheit– Multiply the Celsius temperature by

9/5 or 1.8 and add 32 to the result

Recipe Analysis

• Purpose– To determine the related costs and

sales contributions for each menu item• Raw cost• Contribution to profit• Sales history

Standardized Recipe

• The use of a standardized recipe ensures:– Correct preparation– Consistent quality– Predictable yield– Predictable cost

Calculating Recipe Cost

• From the unit cost/market price that is provided, calculate the extended price (extend 3 places) for each item of the recipe

• Total the extended price column, round to nearest cent

• Divide total by recipe yield to determine per serving cost

Calculating Quantities to Order

• Purpose– Reduce inventories– Reduce waste due to spoilage and

over-production

Prime Variable Costs

• Calculating Food, Beverage, and Labor Costs– Fixed Cost

• Known in advance• Expressed in dollars• Not affected by sales

– Examples: rent, mortgage, bank loans, insurance, salaries, equipment rental or leases

Prime Variable Costs

• Calculating Food, Beverage, and Labor Costs– Variable or Controllable Cost

• Known in advance• Expressed as percentage of sales• Affected by sales

– Examples: supplies, utilities, food, beverage, labor

Prime Variable Costs

• Prime Costs– 15 to 30 percent food cost– 10 to 30 percent beer, wine and

liquor cost– 15 to 30 percent labor cost

Food and Beverage Costs

• Beginning Food Inventory + Food Purchases – Ending Food Inventory = Cost of Food

• Total Food Cost (FC) = Food Cost % (FC%)

Total Sales (S)

Labor Costs

Total Labor Cost (LC) = Labor Cost % (LC%)

Total Sales (S)

Production Management

• Involves the following:– Accounting– Product development– Estimating– Procurement– Staffing and scheduling– Production efficiency

Production Management

• Involves the following:– Waste management– Quality control– Storage– Distribution

Recipe Development(Product Development)

• Must meet expectations of the customers

• Must meet profitability demands of the operation

• Must use ingredients in advantageous ways

Cross-Utilization

• Affects many areas of kitchen operation:– Procurement– Inventory management– Cash flow– Food production

The Three C’s of Production Reports

• Purposes:– Control

• Recording all activity surrounding all prepared menu items

– Communication• Giving direction to the staff as to how much food

to prepare

– Calculation• Determining the value of food sold and the

expected profit

Calculating Quantities to Make

• Sell the party on a cost-plus basis whereby food is constantly supplied as needed and a reasonable profit is added at the end over real costs

• Make the customer responsible for all decisions regarding quantities of food

Estimating Hors d’Oeuvres

• Information needed:– Length of party

• Longer present, more food required

– Time of day• Before a meal, need not be hearty, but during the

meal hour, need to be substantial in quantity and portion

– Makeup of the attendees• Males eat more than females, younger people

more than older people

Converting Recipes

• Increase Yield:– Divide the desired yield by the

current yield to get a working factor– Multiply each ingredient amount in

the recipe by the working factor

Converting Recipes

• Decrease Yield– Write the desired yield over the

current yield as a fraction– Find the least common denominator– Reduce the fraction to its lowest term

to get a working factor– Multiply each ingredient amount in

the recipe by the working factor

Menu Analysis

• Purpose:– Recording the sales history of all

menu items sold– Evaluating the item’s contribution to

profit and customer appeal• Variables to Consider

– Food cost percentage– Contribution margin– Goal value

Menu Analysis

• Variables to Consider– Popularity– Selling price– Variable expense– Fixed expenses

Food Cost Percentage

Cost of Menu Item = Food Cost

Percentage

Menu Selling Price

Contribution Margin

Selling Price (SP) – Food Cost (FC) = Contribution Margin (CM)

Goal Value

• Determined by multiplying a series of numbers together to reveal a score– Information needed:

• Food cost percentage• Variable cost percentage• Selling price• Item popularity (actual number of portions

sold for each item)

Goal Value

• The values for each variable are represented by the following letters:– A = 1.00 – Food Cost Percentage– B = Item Popularity– C = Selling Price– D = 1.00 – (Variable Cost Percentage +

Food Cost Percentage)

A × B × C = Goal Value (GV)

Pricing the Event

• Methods– Cost-Based Pricing

• Most detailed and time-consuming, but most accurate

• Calculate all actual costs, then add predetermined markup to arrive at sales price

– Multiplier-Based Pricing• Divide 100% by desired food cost percentage to

reveal multiplier• Multiply all raw costs by the multiplier to arrive at

selling cost

Pricing the Event

• Methods– Competitive-Based Pricing

• Determined by the price competitors are charging for similar goods and services

– Client-Based Pricing• Determined by amount the customer

(market) will bear