COSTING

Ingredient Costing Ingredient cost = ingredient amount x purchase price per unit Portion Costing Portion cost = sum of amount costs / recipe yield (number of portions) Total portion cost = portion cost + additional costs Portion cost = Menu Price / Food Cost % Menu Price Menu price = total portion cost / food cost % Food Cost Percentage Food Cost % = (Portion Cost / Menu Price) x 100 Procedure for Calculating Recipe Costs * Calculate extensions for all ingredients. * Add all ingredient costs to find the total recipe cost * Divide by the recipe yield (number of portions) to get the cost of one portion. example: Portion Cost = $11.01 / 5 portions = $2.20 / portion NOTE: before we can actually calculate Menu Prices or Food Cost Percentages, we will need to add the cost of any additional foods served such as French fries, vegetables, buns & butter, garnishes, etc. Edible Portion Price Formula Yield% = (EP / AP) x 100% example #1 A striploin weighs 5.2 kg AP and after trimming weights 4.6 kg (EP). Calculate the Yield percentage. * Y% = (EP / AP) x 100% Y% = (4.6 / 5.2) x 100% Y% = .885 x 100% Y% = 88.5% example #2 The striploin in example #1 costs $11.95 / kg to purchase. What is the cost per kilogram of the trimmed striploin? There are 2 methods to find this answer: a) Using the figures for the striploin we have * 5.2 kg x $11.95 / kg = $62.14 so the striploin cost us $62.14 to purchase. The amount of useable striploin is 4.6 kg $62.14 / 4.6 kg = $13.51 kg EP. # b) We don't want to do a test every time the price changes. Since we know the yield percentage is 88.5%, we can use this. * $11.95 / 88.5% = $13.51 / kg example #3 We want to serve 85 people steak sandwiches weighing 170 grams each. How much striploin do we need? a) Calculate the total amount of trimmed striploin (EP weight) required: * 85 portions x 170 grams / portion = 14.45 kilograms minimum weight required. # b) the EP weight will be 88.5% of the AP weight (using our yield percentage) * 14.45 kg / 88.5% = 16.33 kg If we have less than 16.33 kg of striploin, we won't have enough. Cost per Portion Portion Cost (PC) = Menu Price (MP) x Food Cost Percentage (FC%) PC = MP x FC% example The daily special sells for $5.95 and we want to have a 36% Food Cost. How much does the special cost to produce? * PC = MP x FC% * PC = $5.95 x 36% PC = $5.95 x .36 PC = $2.14 As Purchased Price The amount of the ingredient purchased times the purchase price = the cost of the product. example Chicken: we purchased 15 kg of chicken at a price of $2.75 per kg. * 15 kg x $2.75 per kg = $41.25 total cost of the chicken.