2. Quick Session on Food Cost Management
• Improve the success of your dining establishment
• Tips for increasing profit
• Areas of high concern for y0ur business
3. Lesson Plan
I. Menu Execution
II. Food Prep
III. Storing Food
IV. Eliminating Waste
V. Record Keeping
VI. Forecasting
6. Pricing
• Edible Yield
– For produce, determine what % is edible and then cost it out using
only that amount instead of the full weight of the item as is
– For meat you must consider how much is reduced when cooked as
well as unedible portions such as bones or excess fat
7.
8. Pricing
• Calculate out each ingredient cost and then add up
• Long process but well worth it
• Also consider the cost of “free” items offered to customers
– Rolls, butter, plate garnishes
9. Pricing
• Lastly, look at the following to ensure you are in the ballpark
price range for your success
– Location
– Competition
– Clientele
– Atmosphere
11. Following seasonality
• Cheaper prices
• Less travel
– Increased quality
• Evolving menu
– Keeps customer interest
Year
Round
Winter
Spring
Summer
Fall
15. Interview: Dan Winans
• Program Director, EcoGastronomy, University
of New Hampshire
• Previous restuarant owner
• Lectured over forty courses at a culinary school
on “Managing Food Cost”
21. Opportunities in many areas:
– Freeze leftovers
– Buy what you need
– Buy appropriate portions
– Set up a compost bucket
– Measure, measure, measure to not
over serve portions and lose money!
23. Why is it important?
– Payment of suppliers, employees, debts, supplies, etc.
– Predicts type and amount of food item needed based on past sales
and number of customers in a given season
25. How many customers will
I have?
• Daily
• Weekly
• Monthly
• Yearly
• Holidays
• Meal times (breakfast,
lunch, dinner, etc.)
What does the customer
want?
• Popular vs. unpopular menu
items
• Specific diets (gluten-
free, vegan, allergies, etc.)
26. Seasonal Influence
• Consider slow and busy times of year
– Based on past years
– Type and amount of food
– Number of customers
– Hours of operation
– Seasonal vs. annual staff members
27.
28. References
Dopson, Lea R., David K. Hayes, and Jack E. Miller. Study Guide to Accompany Food and Beverage Cost Control.
Hoboken, NJ: John Wiley, 2008. Print.
Dopson, Lea and David K.Hayes. Food and Beverage Cost Control. New York: John Wiley & Sons, 2010. Print.
Finz, Stacy. “Restaurant Markups Deconstructed.” San Fransisco Chronicle. May 22, 2011. Web. Available at:
http://www.sfgate.com/business/article/Restaurant-markups-deconstructed-2370995.php.
“Forecasting in Food Service.” Hotel Mule. Hospitality and Tourism. Available at:
http://hotelmule.com/wiki/Forecasting-in-foodservice
Hayhurst, Gabriela. Store owner, Henrys’ Market in New Castle, NH. Personal Interview. April 2013.
Mcevty P, S Marshall, and B Ware. The Menu and Cycle of Cost Control. Dubuque, Iowa: Kendall Hunt 2002. Print.
Ojugo, Clement, and Todd Rymer. Practical Food & Beverage Cost Control. Albany, NY: Delmar, 1999. Print.
“Why Use Standardized Recipes?” National Food Service Management Institute. Tools and tips for trainers.
Available at: http://www.nfsmi.org/documentlibraryfiles/PDF/20110314105501.pdf
Winans, Dan. Lecturer, Hospitality Management. Personal Interview. April 2013.
