Chapter 4 - Controls in Menu Planning and Food Preparation PDF

CHAPTER 4 CONTROLS IN MENU PLANNING BSHM 141 – COST CONTROL HOW DID YOU PLAN A MENU??  LEARNING OBJECTIVES At the end of this chapter you should able to: ✔ Illustrate the flow of menu planning and product development ✔ Explain the analysis of the market ✔ E...

CHAPTER 4 CONTROLS IN MENU PLANNING BSHM 141 – COST CONTROL HOW DID YOU PLAN A MENU??  LEARNING OBJECTIVES At the end of this chapter you should able to: ✔ Illustrate the flow of menu planning and product development ✔ Explain the analysis of the market ✔ Enumerate the components of a menu ✔ Enumerate the consideration in menu planning and product development ✔ Apply the procedures in preparing and costing standard recipe  CONTROLS IN MENU PLANNING AND FOOD PREPARATION Every operator must see to it that Menus and Banquet packages are designed to suit the target market and that the costs and prices are able to maintain the prescribed food cost budget. ANALYSIS OF THE DESIGNING MENUS AND PREPARING AND TESTING MARKET BANQUET PACKAGES RECIPES TESTING CALCULATING RECIPE ADJUSTING/FINALIZING ACCEPTABILITY/SALABILI COST AND PRICES RECIPES AND MENUS TY OF MENUS/RECIPES MENU ENGINEERING AND MENU ADJUSTMENT  ANALYSIS OF THE MARKET ✔ To be able to come out with a menu that is most acceptable to customers, it is advisable to first analyze the needs and demands of the target market. This process is called market analysis. Guidelines: 1. Do market segmentation by identifying the various segments that’s constitute the market. 2. Know the potential market. 3. Identify the target from various segments. 4. Make a study of the consumption patterns and budget of the target market.  MENU PLANNING AND PRODUCT DEVELOPMENT Study and consider the following: 1. Target Market – ages, nationality, eating habits, religion, preferences, income, nutritional requirements. 2. Capacity of the kitchen – consider the space, availability of cooking equipment and culinary competence of the chef. 3. Location – according to its target market. 4. Available of Raw Materials – dishes that require ingredients that are in season, locally available and easy to produce or if it needs to import or regional specialties produced. CONT. COMPONENTS OF A MENU 1. APPETIZERS 2. SOUP 3. SALADS 4. MAIN ENTREES 5. DESSERT 6. WINES AND BEVERAGES TYPES OF MENUS 1. FIXED MENU 2. DAILY MENUS 3. CYCLE MENUS  CONTROLLING FOOD COST Four Essential Elements in Controlling Food Quality and Cost 1. Standardized Recipes – it indicates the exact quantity of ingredients to be used and the cooking procedures approved by the managers. 2. Standard Purchase Specifications – concise description of the quality, size, weight or count factors desired for each dish. A copy of this document is given to the following: Purchasing Agent/Buyers as their guide in ordering and purchasing stocks Suppliers for them to know the user’s requirement Receiving clerk as his guide for checking deliveries against specifications CONT. 3. Standard Yield – net weight or volume of cooked or prepared dishes. As purchased weight – weight of the item prior to cooking Edible weight – weight after cooking process Loss = shrinkage + waste + trimming + cooking loss Total loss = as purchased – edible portion weight 4. Standard Portion Size – represents the size or weight of the ingredients use in food preparation  RECIPE STANDARDIZATION AND COSTING Standardized Recipe is an important tool for maintaining high quality food and for controlling the food cost. The yield is calculated for an exact quantity based on the predicted number of portions required and the specific portion size The Kitchen or the Product Development Unit must organize a file of standardized recipes.  ADVANTAGES OF A STANDARD RECIPE 1. It serves as an aid for costing. 2. It serves as a tool for controlling food cost, for as long as the standard portion size of each ingredient is consistently followed. 3. It helps to control food quality. 4. Quality, yield and profit are predetermined before the item is featured in the menu. 5. It lighten the work of cooks and bakers. 6. It simplifies purchasing and saves time for storeroom utilities. 7. It entails lesser time for preparation and service. CONT. 8. It saves time in collecting utensils needed for preparation. 9. Guesswork and waste is reduced if not totally eliminated because yield and quantity are already pre-determined. 10. It facilitates the training of cook on proper cooking procedures. 11. Makes management less dependent on a chef.  PROCEDURES IN PREPARING AND COSTING STANDARD RECIPE 1. Using the standard recipe format, write down on top of the recipe the name of the dish and the chef who prepared and tested the recipe. 2. Determine the number of portions (yield) you wish to produce – if good for how many serving/s. Indicate it as yield on top of the recipe. 3. Determine the desired serving size portion. 4. List of ingredients needed to prepare the dish. 5. In column 2, write the unit of measure as in kilo, liter, can, bottle, piece etc. 6. Write the unit cost of each ingredient in column 3. CONT. 7. The portion size required for each ingredient shall be indicated in column 4 8. Multiply the unit cost with the portion size, and the result will be the cost of prescribed portion of each ingredient. 9. Get the total cost of all ingredients. 10. Add a buffer margin of at least 10% to the total cost of ingredients and the result will be the gross food cost. 11. Get the cost per serving by dividing the gross food cost by the number of serving (yield). 12. Get a picture of the recipe and include it in the recipe card. 13. Make a recipe card each dish to serve as reference of kitchen staff in the preparation of the dish.  DETERMINING THE SELLING PRICE OF A DISH 1. COST PERCENTAGE METHOD Selling Price = materials cost (or cost of ingredients) desired food cost% Ex. If the cost per serving of menudo is P12.63 and the desired food cost% is 38%, then selling price will be computed as: P12.63 = P33.23.38 CONT. 2. MARK-UP FACTOR METHOD SELLING PRICE = Material Cost x mark up factor Where mark-up factor is equal to: 100 divided by the desired food cost percentage. If the desired food cost% is 38%, the mark-up factor will be: 100 = 2.63 38 Selling Price = material cost x mark up factor =P 12.63 x 2.63 = P 33.23  CONT. In deciding for the food cost budget consider: a. The cost of operations particularly the fixed cost of rental, labor amortization, etc. If the fixed cost is high and take as much as 40-50% of the revenue, the food cost percentage should be lower to give way for a bigger mark up, otherwise nothing or too little is left for profit. b. Consider the budget of the probable patrons. A low food cost percentage means higher mark-up resulting to higher prices. If the market is Class B or C, they may find the price too high and it is unlikely for them to patronize the item. c. Consider the prices of competitors. If the food cost budget will result to prices much higher than competitors, patrons could be lost to competitors.  COSTING FOR ADJUSTED YIELD To facilitate re-costing, come out with a cost factor or a multiplier, using the formula: Adjusted yield Standard yield Ex. 100 (adjusted/allocated yield) 40 (standard yield) = 2.5 cost factor or multiplier To arrive the adjusted portion for the ingredients, multiply the standard portion size by the multiplier and the result will be adjusted portion based on new allocation Unit Cost x adjusted portion size  TOOL AND AIDS IN RECIPE COSTING 1. Price/Inventory List – list of raw food items and their corresponding acquisition cost, specification, count or measure. This is the primary source of costs prices. 2. Conversion Table – list of equivalent measurement that are available in the nearest bookstore and even found in some cookbooks. 3. Kitchen Tests Raw Food Tests – to determine the count, weight or yield per unit of perishable items. Canned/Bottled Tests – made to check the yield and actual count of the different varieties of canned/bottled food items. CONT. Butcher’s Test – these are cutting tests of meat, fish and poultry. They are intended to determine the actual portion cost after waste, trimmings and by products have been considered. In this case the cost of the item can only be determined by doing a butcher’s test and the computation of cost will require the following procedures. 1. From the results of the butcher’s test, the butcher will separately and compute for the saleable and non saleable portion. The ratio of the saleable weight to the initial or as purchased weightis computed as: Weight of saleable portion Initial or as purchased weight Ex. 4.5 kilos = 62.5 or.625 7.2 kilos 2. Indicate in the card the cost of the item as purchased, that is before undergoing a butcher’s test 3. Get the cost of the saleable weight by using the formula: Cost of saleable weight = as purchased cost ratio of saleable weight Item 1: US Tenderloin Date : Jan. 5, 2007 Product code: #120 Dealer: ASR International Weight Ratio Cost per kilo Initial weight frozen 7.2 P 450.00 Thawed weight 7.1 Fats ad gristles 1.7 Saleable weight 4.5 62.50 P720 (P450.00/.625) Water, blood, trimmings.9 Cost of saleable weight: P720 Cost Factor: P720/450 = 1.6 CONT. 4. Cost Factor – to cope with the changes in the market prices, the re-costing of recipes is a must. The cost factor is computed as: Cost Factor = cost of saleable weight divided by cost of initial (or as purchased weight) For US tenderloin, the cost factor will be computed as P720/P450 = 1.6 5. Buffer Margin – to minimize the frequency of Re-costing, a certain percentage of the total recipe cost is added to answer for increases in the acquisition cost of ingredients. This percentage is left to the discretion of management but should be realistic. Most food establishments use a buffer margin 10% of the actual cost.  MENU ANALYSIS Menu analysis is an attempt to assess the salability or acceptability of the dish/menu based on actual sales and left-overs. These data are reflected in a Menu Analysis Report which is generated from the sales data of the POS (Point of Sales) or from the raw data in order slip. Data generated by the Menu analysis report serve as guide in making necessary adjustments in the dish allocations as well as in adjusting the menu, possibly deleting or improving non-moving or slow moving items and highlighting saleable ones.  CONT. Analysis of a menu requires information on: 1. Popularity index – indicates the popularity of a dish compared to other dishes. This is usually derived by getting the ratio or percentage of sales of the dish from the total quantity of dishes seing sold. 2. Probability Index – indicates the profitability of the item being sold. This is reflected in the cost of the recipe.  SOLD SERVINGS Menu M 4/23 T 4/24 W 4/25 TH 4/26 F 4/27 S 4/28 SU 4/29 TOTAL POPULAR ITY INDEX Pancit Molo 10 8 8 9 9 8 12 64 Clubhouse Sandwich 12 14 14 14 16 23 25 118 Ceasar Salad 25 28 18 30 28 29 30 188 Chicken-Macaroni Salad 40 Fresh Green Salad 15 Cream of Asparagus soup 35 Chicken Teriyaki 15 Chicken barbecue 25 Roast pokloin 25 Beef Caldereta 12 Beef Oriental 15 Total dishes sold 229