If you were a restaurant operator, what are some ways you could make more money?
What are ways you could possibly lose money?
What happens to businesses that lose money?

INSURANCE
RENT / LEASE / MORTGAGE
FRANCHISE FEES
UTILITIES

FOOD COST CONTROL
LABOUR COST CONTROL
CONSUMABLES CONTROLS

LUNCH
Minestrone Soup, Spanish Asparagus and Orange
Salad
Onion and Thyme Tart
APPETIZERS
Crab Cakes with Roasted Red Pepper Aioli
Roasted Tomato and Mozzarella Salad with Basil
Dressing
DINNER
Carrot Cilantro Soup
Watercress with Strawberries, Goat Cheese, and
Toasted Pine Nuts
Marinated Tenderloin Filet with Soy Demi-Glaze
Gorgonzola Mashed Potatoes, Garlic-Seared Spinach
Wines - Washington Cabernet Frank - Australian Shiraz

Fact: More than 75% of restaurants fail in the first year of operation.
Why?
Ask: Does anyone know what a percentage means? How to multiply a percent?
Ask: What is profit?
Ask: How do you calculate that?
Help students to come up with factors
(e.g. more expensive ingredients may be in some

The cost of the ingredients that are used in the menu item.
The universal goal for food cost is in the 25% - 35 % range.
fast food operations strive to achieve lower food costs, how can they do this?

If it costs you 95¢ to make a cheeseburger, how much do you have to charge the customer to
In order to achieve this you need to know how to figure out the following information.
30% of what is 95¢
Food cost should be no more than
30% of the selling price.
#

Change 30% to a decimal= .30
Divide 95¢ by .30 to determine the required selling price.
.95 ÷ .30 = $3.166

expressed in amounts like this?
Why not?
Try to avoid using the dollar sign on a menu- it makes people think of money.
(Use a smaller font for the price and never list in order, people will comparatively shop)
You need to round up, never down, the selling price to a figure that people perceive to be a better value.
Like-$3.25 or even better $3.95
Super Colossal Cheeseburger- 3.95

If your ingredient cost of a tuna sandwich is .42¢ what should your selling price be?
.42¢
30% =

•
•
•
•
•
•
•
•
•
•
• Seafood
Salmon Filet -
Versatile, healthy and served to the chef’s whim
• 17.25
Pasta Melange - Shrimp, scallops and monkfish in a basil cream sauce with red peppers
11.50
• 20.25
Swordfish - Brushed with seasoned oil and charbroiled
13.25
19.25
Filet of Sole - A delicate white fish stuffed with crab and brie
10.95
•
8.25
18.25
Sauteed Sea Scallops - With butter, lemon and sherry
17.95
•

•
•
•
•
•
•
•
•
•
Fried Clam Starter - An appetizer portion of a New England favorite
•
•
Sun Spots - Deep fried sweet potato slices with Creole dip
11.95
8.25
• 5.95
2.95
3.95
Chilled Sliced Balsamic Buttermilk Chicken - Served on a bed of greens
•
Fruit and Cheese Plate - A selection of cheeses with assorted fruit
3.50
• 8.95
5.50
6.25
•
• Seafood

What is the food cost for the following items, if your goal was to have a 30% food cost?

$2.10
$2.70
$2.10
$6.60
$7.80
$1.80
$1.50

Now, if you decide to round the selling price of your cheeseburger to
$3.95, figure out what your food cost percentage would be.
Divide food cost by selling price and multiply by 100.
.95
÷ 3.95 x 100 = 24%
Wow! 24% food cost? You’re making money!

At 30% food cost you could charge:
.95 ÷ .30 = $3.16
You have decided to charge
$3.95
.95
÷ 3.95 = .24 x 100 =24%
Wow! 24% food cost?
You’re making money!

If you are selling a lobster tail for
$17.95 and is costs you $3.25 to prepare what is your food cost
money?
!
4.75 x =
30%
100% or

Prime Rib - 4.75
÷.30=15.8333
What would you charge?
Lobster - $3.25
÷ $17.95=18.1%
Is this an acceptable food cost?

EXTREMELY TEDIOUS
BUT WELL WORTH THE EFFORT

multiple ingredients (such as a casserole):
This method is based on the belief that standardized recipes are used and followed.
The raw food cost of each menu item ingredient is added together and divided by the number of servings.
Computer software can assist in this method.

purchased price per ounce by dividing the purchase price by the purchase weight and then by 16.
Divide $32.85 by 15 lbs to find the cost per pound; then divide by 16 to find the cost per ounce = $0.136 per ounce. This is the as purchased price per ounce. To determine the edible portion price, divide the as purchased price by the yield percentage. Use a reference such as Food for Fifty* and locate the chart that shows the yield percentage for most common food items. (According to Food for Fifty,

ounce. This is the as purchased
edible portion price, divide the as
as Food for Fifty* and locate the chart that shows the yield percentage for most common food items. (According to Food for Fifty, the yield percentage for beef rump roast is 0.62.) Divide the as purchased price per ounce by the yield percentage to determine the cost per ounce for edible portion
($0.136 divided by 0.62 = $0.22 per ounce of edible portion). Then

price, divide the as purchased price by the yield percentage.
Use a reference such as Food for
Fifty* and locate the chart that shows the yield percentage for most common food items. yield percentage for beef rump roast is 0.62.) Divide the as purchased price per ounce by the yield percentage to determine the cost per ounce for edible portion ($0.136 divided by 0.62 = $0.22 per ounce of edible portion). Then multiply that by the number of ounces in your portion size to determine the raw

Food for Fifty
12th Edition by Mary Molt
The "bible" for all aspects of quantity food production is now available in an updated 12th edition. It provides tables and guidelines for food production basics, quantity recipes, and planning strategies.

•
•
•
•
•
•
•
•
•
•
8 tsp
8 tsp
4 tsp
4 tsp
2 2/3 cup
4 cups oil sugar
4 Eggs
4 tsp vanilla
1cup
7 cups molasses flour ginger cinnamon powder soda
1.00
1.00
0.40
0.60
0.10
0.70
0.20
0.20

•
•
•
•
•
•
2.10
7 cups four •
1.47
4 tbsp quick rise yeast
0.25
4 tbsp sugar
½ tsp salt 0.05
000
0.40
2 cup water
½ cup prepared mustard
4 tbsp butter 0.46
•
•
•
•
•
•
8.00
3.00
0.81
0.36
______
16.90
6 cups cooked ham grated swiss cheese 2 cup
1 ½ cup dill pickles, diced
2 egg lightly beaten

16.90 X 4 =
67.60
batch size X 4 =
÷
40 = cost per loaf at a 30% food cost selling price
Actual selling price
Actual Food Cost
1.69 per loaf
1.69
÷
30% =
$5.63
1.69
÷
3.00 =
.56
.56 x 100=56%

GRAND PRIZE DOUBLE CHOCOLATE CHIP
•
•
•
•
•
•
•
•
•
1 1/3 cup margarine
1 1/3 cup shortening
4 cups brown sugar eggs
4 tsp vanilla
2 1/2 cups large oats flour
4 tsp baking soda
4 cups chocolate chips
1.79 lb
2.29 lb
4.39
2.29
1.99 1kg
13.99 -
5.99 1 kg