Class NameInstructor NameDate, Semester

Foundations of Cost ControlDaniel Traster

Recipe Costingchapter 5

The Costing Sheet

To complete, it requires:

• A recipe with a list of ingredients and their quantities

• Y% for each ingredient as it is to be prepped

• AP$ for each ingredient

• EP$ for any item requiring a butcher’s test

The goal of the costing sheet is to determine the total recipe cost and cost per portion.

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Costing Sheet: Heading

• Recipe Name

• Number of Portions (Yield) for the recipe

• Cost per Portion (calculated in the costing sheet)

• Spice Factor and Q Factor

• FC% and Selling Price (covered in next chapter)

The costing sheet heading includes the following:

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Sample Costing Sheet before Calculations

Recipe: Cous Cous with Carrots and Raisins Spice Factor:Portions: 8 Q Factor:Cost per portion: FC% Selling Price:

Ingredient

Quantity

Y% AP$ AP$ converted

EP$ Extended $

Cous Cous 2 cups 100% $4.20/Qt

Carrot, diced

4 oz 77% $0.68/#

Raisins 4 oz 100% $4.37/#

Chicken Stock

16 oz 100% $0.84/Qt

Parsley, chopped

2 Tbsp 1 bun = 8 Tbsp

$0.72/bun

Salt/Pepper To taste To taste Spice Factor

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Converting Units in Costing Sheet

Units in “price per unit” must match the units in the ingredient list.

Invoice units and ingredient units don’t often match.

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Common Invoice Pricing

Invoices often list prices per case size, which may be broken down as number of units in a case and size per unit.

• Examples:―12/1Qt ―40# ―8/5# ―6/#10 cans―80 count

Written as “number/number with unit” the first number is the number of containers in a case. The second is the size of each container.

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Making Invoice Pricing Useable

1) Calculate total weight or volume as:

Total wt. = number of units X weight per unit

2) For volume, substitute volume for weight.

3) Next, calculate AP$ (per unit) as:

AP$ = total cost ÷ total weight (or vol.)

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Example 5a

6# 6oz = 102 oz

Total wt. = units X wt/unit =

6 X 102oz = 612oz

Cost/unit = cost ÷ total wt. =

$16.54 ÷ 612oz

= $0.027/oz

Diced tomato costs $16.54 for a case of 6/#10 cans. Kitchen tests show a #10 can contains 6# 6oz of product. What is the cost per oz?

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Example 5b

1 Gal = 16 cups

Total vol. = 4 units X 16 c/unit = 64 cups

Cost/unit = cost ($31.80) ÷ vol. (64c)

=$0.497/c

Vinegar costs $31.80 for 4/1Gal. What is the cost per cup?

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Possible Complications in Unit Conversion

1. Weight listed on can is not the same as product’s drained weight.

• Solution: test a can and use the drained weight for the calculation.

2. Container measures contents in weight but recipe measures in volume or vice-versa.

• Solution: Open container to measure volume (or weight) and use this figure for calculations.

Note: In both cases, Y% is accounted for by test, so Y% becomes 100% on costing sheet.

See Figure 5.1b10

Calculating EP$ for Costing Sheet

EP$ = AP$ ÷ Y%• Y% in decimal form.

• Only use AP$ with units that match the ingredient’s units.

• For items from a butcher’s yield test, just enter the EP$ from the test and convert to units that match the ingredient’s units.

• For items with Y% = 100%, AP$ = EP$

See Figure 5.1c11

Calculating Extended Costs or “Extension”

Extension = Ingredient Quantity x EP$/unit

See Figure 5.1d

Extended cost or extension is the total amount of money that each ingredient contributes to the total cost of the recipe.

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Total Recipe Cost

Total Recipe Cost

Sum of all

ingredient

extended costs

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Cous Cous Recipe: Part II

Recipe: Cous Cous with Carrots and Raisins Spice Factor:Portions: 8 Q Factor:Cost per portion: FC% Selling Price:Ingredient Quantit

yY% AP$ AP$

converted

EP$ Extended Cost

Cous Cous 2 cups 100% $4.20/Qt $1.05/c $1.05/c $2.10

Carrot, diced

4 oz 77% $0.68/# $0.043/oz $0.056/oz

$0.224

Raisins 4 oz 100% $4.37/# $0.273/oz $0.273/oz

$1.092

Chicken Stock

16 oz 100% $0.84/Qt $0.026/oz $0.026/oz

$0.416

Parsley, chopped

2 Tbsp 1 bun = 8 Tbsp

$0.72/bun $0.09/Tbs $0.09/Tbs

$0.18

Salt/Pepper To taste To taste Spice Factor

S.F S.F. N/A

TOTAL $4.012 14

Spice Factor (S.F.)

• Adjusts recipe cost for ingredients like spices, herbs, and seasonings.

• Each operation decides what ingredients are included in Spice Factor.

• Saves time on costing each spice or herb separately in a recipe.

• Allows for seasoning “to taste.”

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Spice Factor S.F.)

• Divides cost of spices and seasoning across all dishes rather than making heavily spices ones extremely expensive.

• Can be used to account for garnishes and “reject” dishes returned by customer

• Can be applied either to recipe’s total cost or to cost per portion

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Determining the Spice Factor

1. Decide which items will be included in spice factor. Calculate cost spent on those items over a period of time.

2. If desired, include value of “reject” or ruined dishes over the same period.

S.F. = value of S.F. items ÷ value of total food purchases (over the same period)

3. Convert S.F. to % form.17

Example 5c

SF = Value of SF items ÷ total food purchases

= $2,600 ÷ $120,000 =

0.0216 or 2.2%

Restaurant purchases $120,000 in food over 3 months. Spice factor items over that period are valued at $2,600. What is the restaurant’s spice factor?

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Adjusting Recipe’s Cost Using S.F.

SF-adjusted recipe cost =

Recipe Cost x (1+S.F. in decimal form)

• Use this equation on all recipes regardless of spice or herb use

• If dish contains multiple components, adjust each recipe for SF.

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Example 5d

SF-adjusted cost = recipe cost X (1+SF)

= $27.72 X (1 + 0.022) =

$27.72 X 1.022

= $28.33

A recipe’s total cost is $27.72. SF = 2.2%. What is the SF-adjusted cost for the recipe?

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Q Factor

• Applies only to entrées

• Accounts for add-ons, side dishes, or other “freebies” that come with an entrée

• Added (not multiplied) to the entrée price

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Process to determine Q Factor

1. Complete costing sheet for all possible add-ons (soup, salad, bread, butter, dessert, etc.), if any, that come with the purchase of an entrée.

2. Select the most expensive cost per portion among each set of choices the customer gets.

Q Factor

Sum of all of the most

expensive options for each choice

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Why Q Factor?

• If guest orders the most expensive add-ons with his/her dish, the cost is covered in the entrée’s cost (and thus, sales price).

• If guest chooses cheaper add-ons, the restaurant realizes extra profit.

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Example 5e

Chicken Noodle Soup = $0.58

Cream of Broccoli Soup = $0.53

House Salad = $0.85

Spinach Salad = $0.97

Bread = $0.12

Butter = $0.08

Restaurant includes choice of soup or salad and bread and butter with each entrée. What is restaurant’s Q Factor if:

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Example 5e (cont.)

• Most expensive choice for soup or salad is Spinach Salad at $0.97.

• Bread is $0.12 and butter is $0.08

Q Factor = total of most expensive choices

= $0.97 + $0.12 + $0.08 = $1.17

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Calculating True Cost Per Portion

For an entrée, the true cost per portion is

the dish’s cost per portion + Q Factor

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Example 5f

True cost per portion =

Cost per portion (S.F. adjusted) + Q Factor

= $6.22 + $1.17

= $7.39

Restaurant’s Q Factor is $1.17. If a particular entrée costs $6.22 per portion (S.F. adjusted), what is the true cost per portion?

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To Calculate True Cost Per Portion from a Costing Sheet

1. Divide total recipe cost by the recipe’s yield

Cost per portion =

total recipe cost ÷ number of portions

2. Multiply cost per portion X (1+SF) to get spice factor adjusted cost per portion. (This is true cost per portion for non-entrées).

3. If applicable, add Q Factor to get the true cost per portion for an entrée.

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Example 5g

Cost per portion

= recipe cost ÷ yield

=$138.96 ÷ 36

= $3.86

SF adjusted cost per portion = cost per portion x (1 + SF) =$3.86 X 1.026

= $3.96

Entrée recipe serves 36 portions and costs $138.96 total. Spice factor is 2.6% and Q Factor is $2.78. What is true cost per portion for this dish?

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Example 5g (cont.)

True cost per portion

= SF adjust cost per portion + Q Factor

= $3.96 + $2.78

= $6.74

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Cous Cous True Cost Per Portion

Recipe: Cous Cous with Carrots and Raisins Spice Factor: 3.1%Portions: 8 Q Factor: N/ATrue Cost per portion: $0.52 FC% Selling Price:

Total – sum of ingredient extensions (from earlier slide) $4.012

Cost per portion (total ÷ 8 portions) $0.502

SF adjusted cost per portion ($0.502 X (1+0.031)) $0.518

Q Factor – would be added to an entrée, but not relevant for a side dish, so True Cost per portion = SF adjusted cost per portion

$0.518

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Summarized Costing Process

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Summarized Costing Process

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Summarized Costing Process (cont.)

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Standardized Recipes

Often includes

•grades and brands of ingredients

•type of pan

•cooking method

•portion size

•storage and prep information

•plating instructions

•diagram/photo of finished dish

Standardized (or standard) recipe is a recipe written in sufficient detail that a range of cooks could prepare it as written and the results would be identical. It is the recipe that all cooks in the kitchen must follow when preparing a given dish.

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Why Use Standardized Recipes?

• Critical to maintaining consistency for guests.

• A must if costing sheets are to be relevant to the dish’s actual cost in the kitchen.

• They are the source for the ingredient quantities used on the costing sheets.

• They are a control tool – chefs may:― post them prominently ―distribute computerized―yield-adjusted versions daily―and/or oversee production closely to confirm compliance

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Portion and Quality Control

• Critical to meet guest expectations, which prevents customer and revenue loss.

• Keeps recipe costing accurate, which prevents excessive food cost and thus, profit loss.

• Often monitored by expediter or sous chef per the chef’s standards.

• Portion control often allows a very small variance (+/- ¼ oz) to account for the real world.

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Tools to Monitor Portion Size

Weight:

Spring, beam, or digital scales

Volume:

Measuring cups, ladles, portion scoops, ramekins, kitchen or slotted spoons

(somewhat imprecise), or serving containers (like a coffee cup or beer mug)

Count:

The human eye to count by hand. No variance is acceptable for portion by count.

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Quality Control

Examples of quality errors:

•undercooked food

•incorrect garnish

•wilted or unattractive components

•sloppy plate presentation

•error on guest’s special request

The expediter should catch and correct errors before they reach the customers

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