Chapter 10 Monitoring Foodservice Operations III Actual Versus Standard Food Costs

Principles of Food, Beverage, and Labor Cost Controls, Ninth Edition

Cost: Determined by formula, recipe detail and cost card, butcher test, and/or cooking loss test

Sales price (S.P.): Menu sales prices Food cost percent (F.C. %): Cost ÷ Sales

price Total cost: Number forecast × Cost Total sales: Number forecast × Sales price

Changing sales prices Altering portion standards (sizes,

ingredients, and/or recipes) Adding or eliminating menu items

To see if a menu item has sold in greater quantities than forecasted

To determine the extent to which forecasts are wrong

To see the extent to which forecasting techniques can be improved

Actual cost percent: Ratio of actual cost of sales to total sales for a given period

Potential savings: Difference between actual and standard costs

Standard cost percent: Ratio of standard cost to actual dollar sales for a given period

Over purchasing Overproduction Pilferage Spoilage Improper portioning Failure to follow standard recipes

© John Wiley & Sons, Inc. 2009