Cambodia Restaurant
As s o c i a t i o n
Tel: + 855 76 222 886/016 685 888
Email: info@cambodiarestarantassomakara,ciation.com.kh
Website: www.cambodiarestaurantassocation.com.kh No.23, Street 139, Sangkat Veal Vong, Khan Phnom Penh
Standards Revisited
• Track the most expensive
ingredients – check AP prices and
convert to EP costs for vendor
comparisons
• Average restaurant kitchen has
600 to 800 ingredients in stock
but only 20 to 25 account for
almost 80 percent of total food
purchases
CRA
2
Why using
Standardized Recipes?
•
•
•
•
•
Consistent Quality and Taste
Efficient Purchasing
Food Cost Control
Inventory Control
Labor Cost Control
CRA
3
Converting
Recipes
EXERCISE:
Recipe for 10 portions of Parmesan Risotto:
0.6kg
Arborio Rice
0.06kg
Onion, white
140ml
white wine
1.5l
white stock (chicken)
90g
Parmesan Cheese, grated
130g
Butter, unsalted
Convert the whole Recipe for
95 portions.
CRA
4
10 portions
Ingredient
0.6 kg
Arborio Rice
0.06 kg
Onion, white
140 ml
White wine
1.5l
Chicken stock
90g
Grated Parmesan
130g
Butter, unsalted
Formula
CRA
95portions
5
10 portions
Ingredient
Formula
95portions
0.6 kg
Arborio Rice
0.6 : 10 x 95
5.7 kg
0.06 kg
Onion, white
0.06 : 10 x 95
0.57 kg
140 ml
White wine
0.14 : 10 x 95
1.33 l
1.5l
Chicken stock
14.25 l
90g
Grated Parmesan
855 g
130g
Butter, unsalted
1.24 kg
CRA
6
• AP
YIELD
CALCULATION
= as purchased
(the weight or the volume of a product
we purchase, before we start preparing)
• EP = edible portion
(the weight or volume of a product ready
to serve, after cleaning, trimming,
cutting, portioning, cooking)
• AP minus the waste = EP
CRA
7
YIELD
CALCULATION
KNOWING A PRODUCT’S YIELD
WILL HELP YOU TO PURCHASE
THE RIGHT AMOUNT FOR
HAVING THE CORRECT
QUANTITY.
YIELD TESTS MUST BE
PERFORMED TO FIND OUT THE
PERCENTAGE OF A PRODUCT
THAT CAN BE USED AND HOW
MUCH AP OF A PRODUCT
MUST BE PURCHASED.
CRA
8
YIELD CALCULATION
One whole snakehead fish purchased.
The AP weight is 2.5kg.
We cut away the head which weighted 510g,
and remove all the bones of 240g.
In the kitchen we also remove the offal which are 360g.
(We serve a snakehead fish filet with the skin.)
How much is the EP after trimming and cutting?
CRA
9
YIELD CALCULATION
AP – waste = EP
(Waste is the head + bones + offal)
Waste = 510 + 240 + 360 = 1110g
2500 – 1100 = 1390g EP
What is the Yield percentage?
EP : AP x 100 = yield%
CRA
10
YIELD CALCULATION
AP = 2.5kg, EP = 1.39kg
What is the Yield percentage?
EP : AP x 100 = yield%
1.39 : 2.5 x 100 = 55.6% yield
Of one whole snakehead fish we can serve 55.6%.
CRA
11
Yield Calculation
Tomorrow is a Banquet Menu for
150 people where every guest gets
90g of Mango served (=EP).
How much Mango serving in
total EP?
How much Mango to be purchased
total AP?
Knowing the yield percentage of 65%.
CRA
12
Yield Calculation
Banquet Menu for 150 people, serve every
guest 90g.
How much Mango serving in total EP?
150 x 90 = 13500
We need 13.5kg Mango EP.
How much Mango need to purchase AP?
yield percentage of 65%
CRA
13
Yield Calculation
We need 13.5kg Mango EP.
How much Mango do I need to purchase AP?
I know the yield percentage of 65%.
EP : yield% x 100 = AP
13.5 : 65 x 100 = 20.77kg AP
CRA
14
SALMON
•
•
•
•
1kg of Salmon,
3 different vendors,
3 different prices (AP),
3 different yield percentages
What is the EP cost of each
vendor?
Which vendor (A, B, or C) would
you choose for the best EP cost?
CRA
15
SALMON
• Vendor A (Thai Huot)
$ 9.10/kg
• Vendor B (Lucky Market): $11.80/kg
• Vendor C (local fish guy): $15.50/kg
CRA
16
SALMON
• Vendor A: $ 9.10/kg, 58% yield percentage
• Vendor B: $11.80/kg, 80% yield percentage
• Vendor C: $15.50/kg, 97% yield percentage
CRA
17
SALMON
Vendor A: 9.10 ÷ 58 x 100 = $15.60 (EP)
Vendor B: 11.80 ÷ 80 x 100 = $14.75 (EP)
Vendor C: 15.50 ÷ 97 x 100 = $15.98 (EP)
Vendor B will get your business, because of
the most economical price (best EP price).
CRA
18
Food Cost
food cost is simply the total cost of
your purchased food.
• food costing is important to know as it
has a direct effect on the profitability of a
restaurant.
It is the cost of your ingredients and does
not include other costs, such as labor and
other running costs.
• Food costing is an essential tool in
determining whether food costs targets
are being met.
CRA
19
Food Cost
• a profitable restaurant typically
generates a 28% - 35% food cost.
Coupled with labor costs, these
expenses consume 60% - 75% of total
sales.
• Because of the impact food cost makes
on an operation, food cost is one of the
first things we examine at a troubled
property.
CRA
20
Food cost
• The range for restaurant profit margin
typically spans anywhere from 0–15%
but usually restaurants fall between a
3–5% average restaurant profit margin.
CRA
21
CRA
22
Food Cost Calculation
Beef Burger:
•
•
•
•
•
•
Meat
Bread
Tomato
Onion
Sauce
Chips
0.55$
0.13$
0.11$
0.06$
0.28$
0.22$
total
1.35$
What is my selling price in the menu?
CRA
23
Beef Burger:
total food cost of 1.35$
selling price must be 4.50$
food cost : food cost percentage x 100 = selling price
1.35$ : 30%
x 100
CRA
= 4.50$
24
Selling Price
30% food cost goal
19% hourly labor (servers, dishwashers)
14% salaried labor (manager, owner, head-chef)
6% utilities (gas, electricity, water, Wi-Fi)
10% fixed cost (rent, mortgage payments, insurance)
3% fees and licenses (taxes, liquor license, permits)
5% supplies (cleaning, non-food cooking, plates, equipment)
4% Marketing
4% Maintenance
5% target profit
CRA
25
Checking if selling price is correct.
What is my food cost percentage?
Selling price
Food Cost
= 5.00$
= 1.55$
food cost : selling price x 100
= food cost %
1.55 : 5 x 100 = 31%
CRA
26
Food Cost Percentage is too high!
What are the options to changeit?
Selling price= 5.00$
Food Cost=
1.55$
food cost : selling price x 100 = food cost %
1.55 : 5 x 100 = 31% food cost
• Higher selling price (increase)
• Lower food cost
CRA
27
Lower the food cost options:
•
•
•
•
Smaller portion
Less ingredients
Cheaper purchase prices
Find substitute products
CRA
28
Average Calculation
guests
portions
Monday
205
35
Tuesday
190
32
Wednesday
187
31
Thursday
192
34
Friday
210
38
percentage
Saturday
Sunday
CR A
29
Average Sales Percentage
guests
portions
percentage
Monday
205
35
17.07%
35 : 205 x 100 = 17.07
Tuesday
190
32
16.84%
32 : 190 x 100 = 16.84
Wednesday
187
31
16.58%
Thursday
192
34
17.71%
Friday
210
38
18.10%
Saturday
Sunday
17.26%
CR A
Mo+Tue+Wed+Thu+Fr : 5
30
Average Sales Percentage
guests
portions
Monday
205
35
17.07%
35 : 205 x 100 = 17.07
Tuesday
190
32
16.84%
32 : 190 x 100 = 16.84
Wednesday
187
31
16.58%
Thursday
192
34
17.71%
Friday
210
38
18.10%
Saturday
380
Sunday
percentage
17.26%
CRA
= average percentage
31
Average Sales Percentage
guests
portions
percentage
Monday
205
35
17.07%
35 : 205 x 100 = 17.07
Tuesday
190
32
16.84%
32 : 190 x 100 = 16.84
Wednesday
187
31
16.58%
Thursday
192
34
17.71%
Friday
210
38
18.10%
Saturday
380
65.59
17.26%
Sunday
0
CR A
380 x 17.26 : 100= 65.59
32
Ordering Process – Exercise
• Banquet Forecast: 170 guests coming,
Every guest will get EP 150g of river prawns.
The yield percentage is 84%.
How much AP needed?
• a la carte: 240guests expected.
In average 19% like to order the prawns.
I serve 160g portions
The yield percentage is 84%.
How much AP is needed in a la carte?
• Physical Inventory:
in the freezer we still have 5.2kg of prawns.
CRA
33
Ordering Process – Exercise
• Banquet Forecast: 170guests coming,
Every guest will get EP 150g of prawns.
• How many prawns in total EP?
170 guests x 150g = 25.5kg EP
The yield percentage is 84%.
How much AP needed?
CRA
34
Ordering Process – Exercise
• Banquet Forecast: 170guests coming,
Every guest will get EP 150g of prawns.
How many prawns in total EP?
170 guests x 150g = 25.5kg EP
The yield percentage is 84%.
How much AP needed?
25.5 : 84 x 100 = 30.36kg AP
CRA
35
Ordering Process – Exercise
• Banquet Forecast = 30.36kg AP
• a la carte: 240guests expected.
In average 19% like to order the prawns.
• How many guests will order prawns in
average?
CRA
36
Ordering Process – Exercise
• Banquet Forecast = 30.36kg AP
• a la carte: 240guests expected.
In average 19% like to order the prawns.
• How many guests will order prawns in average?
240 guests x 19 : 100 = 45.6 guests
EP 160g per portion.
• What is the total EP in kg?
CRA
37
Ordering Process – Exercise
• Banquet Forecast = 30.36kg AP
• a la carte: 240guests expected.
In average 19% like to order prawns.
• How many guests will order prawns in average?
240 guests x 19% = 45.6 guests
I serve 160g portions.
• What is the total EP in kg?
45.6 x 160g = 7.3kg EP
The yield percentage is 84%.
How much AP is neededCRAin a la carte?
38
Ordering Process – Exercise
• Banquet Forecast = 30.36kg AP
• a la carte: 240guests expected.
In average 19% like to order prawns
• How many guests will order prawns in
average?
240 guests x 19% = 45.6 guests
I serve 160g portions.
45.6 x 160g = 7.3kg EP
The yield percentage is 84%.
How much AP is needed in a la carte?
• 7.3 : 84 x 100 = 8.7kg AP
CRA
39
Ordering Process - Exercise
• Banquet Forecast = 30.36kg AP
• a la carte: = 8.7kg AP
• Physical Inventory needs to be done before the order.
Still have 5.2kg of prawns left in the fridge.
What is the total order of prawns?
(Banquet + a la carte – Inventory = total AP)
CRA
40
Ordering Process – Exercise
• Banquet Forecast = 30.36kg AP
• a la carte: = 8.7kg AP
• Physical Inventory:
Still have 5.2kg of prawns left in the fridge.
What is the total order of prawns?
(Banquet + a la carte – Inventory = total AP)
30.36 + 8.7 – 5.2 = 33.86kg AP
Will you really order exact 33.86kg of prawns?
CRA
41
Ordering Process – Exercise
• Banquet Forecast = 30.36kg AP
• a la carte: = 8.7kg AP
• Physical Inventory: 5.2kg
Will you really order exact 33.86kg of prawns?
Order More!
• maybe more guests are joining the Banquet.
• the yield% can be different
(wrong cutting / trimming)
• more prawns served in a la carte as usual
• Mistakes in the kitchen like burn or fall down
CRA
42
INVENTORY
Inventory is the goods and materials that a business holds
for the ultimate goal of resale.
A certain amount of food products you will always have in
your storage room.
Mostly dry store products or frozen food.
Should not have expensive or perishable items in stock.
CRA
43
INVENTORY
What is happening:
• once in a month, on the 1st,
every food item in the storage rooms is going to be
counted or scaled.
You can also perform an Inventory weekly or quarterly, important is
that the gap between two Inventories is always the same durance.
Weekly: always on Mondays
Monthly: always on the first of the month
CRA
44
INVENTORY
What is happening:
• Then putted in a list with the actual AP prices and that
shows the amount of money laying in the storage rooms
without being sold.
The Inventory list needs to be up to date with the AP prices
and all items must be registered.
CRA
45
INVENTORY
Why performing an Inventory?
• To know the amount of money laying in the storage rooms
• To calculate our actual food cost percentage
• It must be done with no exceptions in the same time period
and precise and strict.
CRA
46
INVENTORY
• calculate the actual food cost percentage:
Beginning Inventory + Purchases – End Inventory : Revenue x 100
= actual food cost percentage
CRA
47
food cost percentage
Prior month:
Purchases = $2’000
Revenue = $5’000
• 2000 : 5000 x 100 = 40%
CRA
48
Calculate actual food cost percentage
Beginning Inventory + Purchases – End Inventory
÷ Revenue x 100 = actual food cost %
• Ex:
Beginning Inventory = $1’000
= $2’000
Purchases
= $1’500
Ending Inventory
Food Sales (Revenue) = $5’000
• 1’000 + 2’000 – 1’500 : 5’000 = 30%
CRA
49
actual food cost percentage 1
Beginning Inventory + Purchases – End Inventory
÷ Revenue = food cost percentage
• example:
Beginning Inventory
Purchases
Ending Inventory
Revenue
= $8’000
= $6’000
= $7’600
= $18’400
CRA
50
actual food cost percentage 1
Beginning Inventory + Purchases – End Inventory
÷ Revenue = food cost percentage
Beginning Inventory
Purchases
Ending Inventory
Revenue
= $8’000
= $6’000
= $7’600
= $18’400
• 8000 + 6000 – 7600 : 18400 = 34.7%
CRA
51
actual food cost percentage 2
• example:
Beginning Inventory = $5’000
= $3’100
Purchases
= $4’850
Ending Inventory
= $10’300
Revenue
CRA
52
actual food cost percentage 2
• example:
Beginning Inventory = $5’000
= $3’100
Purchases
= $4’850
Ending Inventory
= $10’300
Revenue
• 5000 + 3100 – 4850 : 10300 = 31.5%
CRA
53
actual food cost percentage 3
• example:
Purchases
Revenue
Beginning Inventory
Ending Inventory
= $15’000
= $52’000
= $40’500
= $41’300
CRA
54
actual food cost percentage 3
• example:
= $15’000
Purchases
Revenue
= $52’000
Beginning Inventory = $40’500
Ending Inventory = $41’300
• 40500 + 15000 – 41300 : 52000 = 27,3%
CRA
55
average food cost percentage
Need to find an average over the past three months.
1: 34.7%
2: 31.5%
3: 27.3%
34.7 + 31.5 + 27.3 : 3 (months) = 31.17% average
The Food cost percentage is too high!
We need to react!
We have to do an Analysis.
CRA
56
Things to check if the food cost % is too high:
Your calculations may be wrong
 You received a delivery with wrong
Specification Products
there is extra production waste
portion sizes are too big
someone is ripping you off
CRA
57
We analyze because we need to find the reason
why the food cost percentage is too high.
• Track the most expensive items in your menu
• Double check the selling price calculation.
• Is the AP price in the calculation up to date?
Don’t panic if one month is a bit too high.
React of course.
Take an average of the past months.
CRA
58
• Beef Filet $16.40 (AP) per kg
• 1Portion = 200g
• How much AP price is one portion?
CRA
59
• Beef Filet $16.40 (AP) per kg
• 1Portion = 200g
• 1 Portion = $3.28 (=food cost)
$16.40 : 1000g x200g or 16.40 x 0.2kg
• Selling price is $11.50 per portion
• What’s the food cost percentage?
CRA
60
• Beef Filet $16.40 (AP) per kg
• 1Portion = 200g
• 1 Portion = $3.28
• Selling price is $11.50 per portion
• What’s the food cost percentage?
• 28.52% (3.28 : 11.50 x 100)
CRA
61
• Beef Filet $16.40 (AP) per kg
• 1Portion = 200g
• 1 Portion = $3.28
• Selling price is $11.50 per portion
• What’s the food cost percentage?
• 28.52% (3.28 : 11.50 x 100)
• I sold last month 140 portions of beef filet
What is my Revenue?
CRA
62
•I sold last month 140 portions of beef filet
(selling price 11.50 per portion)
• $11.50 x 140 = $1’610 (= Revenue)
• Beginning Inventory
• Purchases
• Ending Inventory
32kg
29kg
24kg
CRA
63
• Revenue = $1’610
• AP price per kg = 16.40$
• Beg. Inv. 32kg = 32 x 16.40 = $524.80
• Purchases 29kg = 29 x 16.40 = $475.60
• End. Inv. 24kg = 24 x 16.40 = $393.60
CRA
64
• Revenue
= $1610
• Beginning Inventory 32kg =$524.80
• Purchases
• Ending Inventory
29kg = $475.60
24kg = $393.60
524.80 + 475.60 – 393.60 : 1610 = 37.69%
Beginning Inventory + Purchases – End Inventory ÷ Revenue = food cost %
CRA
65
You are the direct control system
walk around
be visible
 don’t sit in your chair (if you have a chair)
CRA
66
LABOR COST
is considered a semi variable cost
because it involves a fixed
component (salaried employees)
as well as a variable component
(casual employees).
Additional costs are:
• social security contribution,
• medicare contribution,
• employees benefits
CRA
67
TIME =
MONEY
It is said that the most perishable
commodity in foodservice
operation is the labor hour, if not
used productively it is lost forever.
It cannot be carried over like an
unused head of lettuce.
Therefore, managers also track
indirect factors on productivity,
such as performance against
quality and productivity
standards.
CRA
68
CrossTrain
Your
Staff
Cross-training is beneficial to
both the employee and the
business, since the worker
will have a wider range of
skills and be able to help in
multiple areas of the
restaurant.
This allows the manager to
schedule fewer workers
while still being able to
achieve the same
production and service
standards.
CRA
69
- Train your hostesses to
work as back-up servers
Cross-Train
Your Staff
-Train bussers to help
run food to customers
-Train your steward to
wash and prepare salads
CRA
70
It is often tempting to schedule more
people than necessary in order to
ensure that the business runs without
any kinks.
Avoid
OverStaffing
Scheduling too many employees will
increase your labor costs and reduce
your overall profit, hurting your
business overall. If you find that you
have over-scheduled, you can send
staff members home early. Train your
people to work quickly, accurately
and efficiently while also treating
guests with respect and care.
This allows you to operate at a high
standard while still hitting your target
labor percentage.
CRA
71
CRA
72