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