Food Costing Practices OLD AND NEW. J. Kevin O Brien Food Service Director, Certified Executive Chef

Transcription

1 Food Costing Practices OLD AND NEW J. Kevin O Brien Food Service Director, Certified Executive Chef

2 Food cost-40% Labor cost-40% 40/40/20 Administrative Expense-10% Profit-10% Taught in college for years as the standard for operating restaurants.

3 The Corrections Food Service Director 1. Doesn t worry about food cost %. No sales 2. Instead we have Prisoner Days 3. Food Costing formula s are similar 4. BEG.INV. + PURCH. END. INV.=COGS 5. This is the same formula for both industries 6. In corrections we calculate FC per prisoner day for the period or by the avg. No. of prisoners for the period x the number of days in the period. 7. Next we take the period purchases and divide by the total prisoner days to get our per capita cost. The per day, per prisoner cost. Example.

4 INVENTORY AND FOOD COST REPORT DEPARTMENT BEGINNING INV. PURCHASES ENDING INV. FOOD COST MISC. $3,000 8,000 2,500 $8,500 BAKED GOODS 2,500 8,500 2,500 8,500 DRY GOODS 8,000 17,000 9,500 15,500 FROZEN GOODS 3,600 12,000 3,000 12,600 MEAT FISH & POULTRY 16,000 22,000 14,000 24,000 DAIRY 10,000 16,000 9,000 17,000 PRODUCE 3,000 9,000 3,000 9,000 BEVERAGES 1,500 4,000 1,000 4,500 TOTALS 47,600 96,500 44,500 99,600 MONTHLY STATUS PER CAPITA COST PURCHASES-$96,500 DIV.BY ACTUAL PRISONER DAYS (Avg. count x days in month)-1400 X 31=43,400 EQUALS PER CAPITA COST=$2.22 ACTUAL FOOD COST MONTHLY FOOD COST-$99,600 DIV. BY ACTUAL PRISONER DAYS- 42,718 EQUALS COST TO FEED=$2.33 (IF END.INV. WAS 48,000 ACTUAL COST=2.25) KEEP INV. LEVEL MONTHLY YEAR TO DATE STATUS-MULTIPLY OUT FOR YOUR YEAR TO SEE YOU ANNUAL FIGURES AND TO TRACK YOUR FIGURES AGAINST THE BUDGET.

5 FACTORS AFFECTING FOOD COST MENU MIX-Casseroles will be less expensive for the most part than single serve items. Restaurants and Prisons both have high and low cost menu items. We serve a chicken quarter dinner most Sunday s. a. Very expensive b. Food shortages and higher cost items in the future will affect new menu s. OVER COOKING-Shrinking of food due to overcooking. Failure to get proper yield. a. Prisoners tend to overcook-well done syndrome. b. Recipes not followed. c. Not cooking in batches or just in time cooking.

6 PORTION CONTROL Feeding high volumes will cause prisoners to rush and serving utensils will not be properly leveled. Result-overportioning. Proper serving Utensils. a. At least 2 companies in correctional equipment have serving utensils unique to the industry. 1. These feature deep bowls and less surface area. This reduces overportioning because less food can be mounted on top. 2. One product has a shape allowing easy access to the corners of the steam table pan. This reduces food waste and higher yields. You probably saw these at the vendor trade show.

7 SERVING TRAYS With today s smaller menu calorie counts, large trays of the past are outdated. Smaller trays with less capacity compartments will better suite today s portions. Decide whether to go to another tray based on: a. how your portions look in the tray. b. Number of complaints on small portions. c. Compartment sizes to match your servings and type of material.

8 TECHNOLOGY Numerous methods for saving money with today s technology in cooking equipment, packaging and serving food. a. Individual, disposable and biodegradable food trays. 1. Proven in the corrections industry to reduce food cost by 15%. 2. Provide excellent portion control. 3. Eliminate over portioning. 4. Good eye appeal, prisoners like the trays. 5. Can be re-thermed in the oven, microwave or in re-therm cabinets. 6. Equipment and sealing film are readily available. 7. Combine with Green Disposal Equipment-Pulpers & dehydrators.

9 COOKING EQUIPMENT Sofisticated enough now to monitor all aspects of the cooking and holding process 1. Reduce shrinkage of meats. Cook during non peak hours, reducing energy costs. Kitchen cooler in peak hours. Built in features such as: Tracking temps; Internaal thermometers for optimum product quality and eliminates overcooking. Production kitchens are being used much more commonplace now. Some facilities don t have kitchens or dining rooms. Food is produced off site and delivered daily.

10 Challenges with prisoner management in the kitchen. 1. Motivation-Prisoners see the kitchen as a good place to work. They have access to food, may eat better than GP and are out of their cells. 2. Training-I have found that prisoners respond very favorably to culinary arts training. Even little time saving techniques are valued to prisoners. They will soak up this training very easily. It must include sanitation and food safety. However, time is a big constraint for us in culinary training. 3. A Certified Culinary Program such as Chef Pro or the ACF Apprenticeship program offered in conjugation with working in the kitchen is optimum.

11 Reduce the number of prisoner workers needed in the kitchen-more productive. Increases the prisoners interest in a food service career now and when they get out. Prisoners will take instruction better, due to a foundation of cooking and sanitation. Accidents are reduced. Kitchen workers are more comfortable with equipment when well trained in its use.

12 Many factors affect the decision to purchase special buys. If you have this authority to purchase, it is both a blessing and a curse. Time is a major factor in the decision to use special buy companies. It can easily be a full time job. Do you have the time? Your staff? Trade off on being on the floor helping to supervise or in the office doing special buys. Major savings potential. Lets look a just a few examples I receive daily.

13 From: Sent: Tuesday, May 01, :06 PM To: Subject: 6/66.5 oz. Stella Tuna We have the following Stella Tuna : ITEM PACK DELIVERED PRICE COUNTRY OF ORIGIN Skipjack Chunk Light Tuna In Water With VB Tongol Chunk Tuna In Water With VB Albacore Chunk Tuna In Water With VB 6/66.5 oz Cans 6/66.5 oz Cans 6/66.5 oz Cans $47.95 / case $58.95 / case $76.75 / case PRICING IS DELIVERED TO YOUR DOOR!!! 1500 cases per truck. Floor loaded. 7-9 weeks lead time. Thailand, Philippines, or Vietnam Thailand, Philippines, or Vietnam Thailand, Philippines, or Vietnam Herbert Thau Simco USA 1180 S Beverly Drive, Ste 509 Los Angeles, CA USA Tel: Fax: Web:

14 Ground Turkey Thigh Trim Packed in 40 lb cases Production 01/27/ /30/ cs (34280 lbs) available Take All $0.69 lb FOB Savannah, GA Call Mike for Delivered Price x202 or

15 Sent: Monday, April 30, :31 PM To: Subject: Poultry Items Poultry Items ITEM PACK PRICE LOCATION Chicken Fritter Raw / Dark Meat / Cubed Battered Dark Meat Raw / Cubed Breast Fritter Raw / Chunk / Boneless / Skinless Chicken Breast Portion Raw / Homestyle Chicken Patty Fritter Fully Cooked / White & Dark Meat Chicken Breast Fritter Raw Chicken Breast Patty Raw / Fritter 20 lb 45 cents / lb Delivered 20 lb 45 cents / lb Delivered 20 lb 50 cents / lb Delivered 20 lb 60 cents / lb Delivered 20 lb 65 cents / lb Delivered 20 lb $1.00 / lb Delivered 20 lb $1.05 / lb Delivered Price based on a 5,000 lb order. Minimum order is 3,000 lbs. Add 10 cents per lb on orders less than 5,000 lb.

16 To: Subject: USA Frozen Vegetables USA Frozen Vegetables ITEM PACK PRICE FOB Diced Carrots 20 lb 32 cents / lb Oregon Cob Corn in 28 lb 36 cents / lb Oregon Smooth Sliced Carrots 20 lb 39 cents / lb Oregon Waxed Beans Mixed Cut Mixed Veg 3-Way Carrots, Peas, & Corn Mixed Veg 4-Way Carrots, Peas, Corn, & Green Beans Green Beans Regular Cut 20 lb 45 cents / lb Oregon 20 lb 47 cents / lb Oregon 20 lb 48 cents / lb Oregon 20 lb 51 cents / lb Oregon OK TO MIX!!! Pricing based on a truckload order. Less than truckload orders are available. Please call for delivered prices. Herbert Thau Simco USA 1180 S Beverly Drive, Ste 509 Los Angeles, CA USA

17 Description: Case Pack: Pallet: Quantity Available: Price: Delivered Dating: Potato Flakes - Color is Yukon Gold Yellow 40# Bag 50 Bags Up to 2 T/L s T/L: $1.09 lb. LTL (6 pallet minimum): $1.29 lb. Produced in the last 6 months Thank you, Mike Zurowski X 249 DIRECT LINE: Fax Cell Sales Manager DOC Division Global Foods Incorporated mikez@globalfoodslv.com S. Durango Dr. Las Vegas, NV 89113

18 Chicken Breast Patties Uniform, 3.2 oz. Portions, All White Meat Ready to Cook, Made for National Chain 81 cases

19 Fully Cooked Natural Chicken Tenders All White Meat, Natural Tenders 214 cases

20 FOOD COSTING IN CORRECTIONS IS CHANGING FROM TRADITIONAL INSTRUCTION TO A WIDE OPEN, LEARN AS YOU GO AND EVEN CREATE NEW RULES BUSINESS. 1. Yes, Business, because Food Service is the only department in a facility that can really affect its own destiny as it is able to reduce costs. 2. We can save a lot of money that can then be used to purchase cost saving equipment. 3. Technology in equipment has helped greatly in creating a cost saving environment for food service. 4. Training and education of prisoner food service workers will result in better productivity. 5. Find your own mix of portion control, special buys, controlling food costs, equipment purchases, technology and training and you will succeed.