Kitchen Economics 101.ppt

* * * * * Page 6 of handout * * Page 6 of handout * Page 6 of handout * * Page 6 of handout * Page 6 of handout * Page 6 of handout * * Step #3 Example Chicken stock $4.98 gal. 1 gal. equals 128 ounces 4.98 ÷ 128 = .0389062! Step #4 Determine the cost of each ingredient To do so we simply multiply….. Per ounce cost x # of ounces in the recipe Step #4 Determine the cost of ingredients per ounce ounces cost .0389062 x 192 = $7.47 but the question is…….. To round or not to round? Step #4 Determine the cost of ingredients Not rounding: .0389062 x 192 = $7.47 Rounding: .04 x 192 = $7.68 Which do you prefer? Step #4 Determine the remaining ingredients cost………. Milk Heavy Cream Eggs Tomatoes Determine Cost for Each Item Chicken Stock 1.5 gal. $4.98 gal. Milk 12 oz. $2.38 gal. Heavy Cream 4 oz. $1.28 qt. Eggs 3 $1.29 dz. Tomatoes 4 $15.95 Cse. (there are 30 tomatoes per case) Determine Cost per Serving…... Calculate individual ingredient cost Add total of all ingredients Divide by number of ounces in yield Multiply by number of ounces in serving Part 2: Menu Price FCP (%) Key Terms: Menu Price Food Cost Percentage Menu Price FCP (%) Menu Price: The amount a guest is charged for their meal, taking into account all costs; food, labor, and any other costs relating to producing and serving the meal Menu Price FCP (%) Food Cost Percentage (%): The percentage of the menu price that represents the cost of ingredients (ProStart Year 1 pg. 471) Formula for determining menu price using FCP Ingredient cost FCP Menu Price Formula for determining menu price using FCP $1.46 (food cost) 33% (food cost percentage) $4.42 (menu price) To determine FCP with a given menu price Ingredient cost Sales FCP (ProStart Year 1 pg. 471) Part 4: AP EP Key Terms: AP: As Purchased EP: Edible Portion AP EP AP – As Purchased: The total weight or amount of a product before trimming AP EP EP – Edible Portio