Foodservice Math Calculations
How to calculate the amount of relief employees needed?
# full time positions x 0.55
At the end of a six month period, there are 80 positions in the department. During that time, 18 employees were terminated. What is the labor turnover rate?
# of employees terminated/separated / total # positions 18 / 80 = 0.225 > 22.5%
Popularity index calculation
# servings of an individual items / total # servings sold in that category that day
How to calculate menu mix + example High and low popularity is decided based on
# sold of a particular item / # total of all items sold Greater than or less than 70% 50 stir fries sold / 90 total items sold = 55% low in menu mix
A smoothie recipe calls for a number 4 scoop of Greek yogurt, a number 8 scoop of frozen strawberries, and a number 8 scoop of fresh blueberries. A total of 450 smoothies are needed. How many gallons of Greek yogurt will be needed?
#4 scoop = 1 cup Greek yogurt #8 scoop = 1/2 cup strawberries + 1/2 cup blueberries 450 cups Greek yogurt needed for 450 smoothies 1 gallon = 16 cups 450 / 16 cups/gallon = 28.125 gallons > 29 gallons
Budget projectionsThe budget for this year includes the following: Sales $1,500,00 Labor costs: 35% of income Food costs: 40% of income Operating costs: 15% of income The budget for the next will increase by the following Labor: 7% Food: 8% Operating: 2% What is the projected budget for next year?
$1,500,000 x 0.35 = $525,000 x 0.07 = $36,750 + $525,000 = $561,750 $1,500,000 x 0.40 = $600,000 x 0.08 = $48,000 + $600,000 = $648,000 $1,500,000 x 0.15 = $225,000 x 0.02 = $4,500 + $225,000 = $229,500 $561,750 + $648,000 + $229,500 = $1,439,250
One pound of turkey as purchased yields .35 lb cooked turkey without skin. The cost of the turkey breast is $1.19 per pound. What is the cost of a 4-ounce portion?
$1.19 / 0.35 = $3.4/lb $3.4 / 16 = $0.21/oz x 4 = $0.85 per 4 oz
Adjusting recipes for different quantities How much will it cost to prepare 50 servings of beef stew using the following ingredients? 18 lbs of bottom round at $2.00/lb 1 1/2 gallon beef stock at $0.50/quart 6 1/4 lb carrots at $1.50/lb 25 oz minced onions at $1.00/lb
$2.00/lb x x/18 lbs = $36 $0.50/quart x x/6 quarts = $3 $1.50/lb x x/6.25 lb = $9.38 $1.00/16 oz x x/25 oz = $1.56 36 + 3 + 9.38 + 1.56 = $49.94 is the cost for 50 servings
A foodservice operation had a daily food cost of $265 and a daily income of $640, what % of income was spent on food sold?
$265 / $640 = 41%
The cafeteria has an annual food cost of $300,000 and it maintains an average inventory of $14,000. What is the inventory turnover figure for the cafeteria? (year and month)
$300,000 / $14,000 = 21.4 by year 21.4 / 12 = 1.78 by month
A business has an average food cost of $37,380 and an average inventory cost of $17,500, what is the inventory turnover rate?
$37,380 / $17,500 = 2.14x average
How many FTE's can you hire with a weekly budget of $8640 if the salary is $12.00 per hour?
$8640 / $12/hour = 720 hours / 40 = 18 FTEs
If the deck oven costs $9,000, is supposed to last 6 years and has a salvage value of $500, what is its annual depreciation?
$9,000 -$500 / 6 years = $1416.67
When determining how many servings can be obtained from an uncooked item, consider _______________ How many servings can you get from 9 lb of raw meat with a 30% shrinkage if the serving size is 5 oz?
% lost in cooking/preparation 1. Subtract amount that will be lost 2. Convert to oz 3. Divide by portion size (9 lb)(0.3) = 2.7 lb lost in cooking 9 lb - 2.7 lb = 6.3 lb 6.3 lb x 16 oz/lb = 100.8 oz 100.8 oz / 5 oz/serving = 20.16 servings
Determine food cost per meal using following information... Inventory as of June 1: $36,250 Inventory as of July 1: $34,375 Foods purchased in June: $52,390 Meals served in June: 134,000
(Inventory 1 - Inventory 2) + food purchased / meals served (36,250 - 34,375) + 52,390 / 134,000 = $0.40 per meal
The chef needs to make 175 chicken salad sandwiches. Each sandwich requires 3 oz of cooked chicken. A cooked 7 lb oven roaster yields an average of 4 lbs of cooked meat. How many roasters must the chef purchase to yield enough chicken for the salad?
1. 4 lb / 7 lb = 0.57 yield (57%) 175 sandwiches x 3 oz/sandwich = 525 oz 525 oz / 16 oz = 32.81 lb needed 32.81 lb / 0.57 = 57.57 / 7 = 8.22 > 9 roasters
Hardware $3500 Software $2400 Staff instruction $1000 Labor hours saved: 6 hours per week at $20/hour Calculate payback period
1. Add up costs of service: 3500 + 2400 + 1000 = $6900 2. Add up costs saved by using new service: 6 hours x $20 = $120 saved 3. $6900 / $120 = 57.5 weeks to PAY BACK the. cost of service
The census is 400, with 8 employees on tray line that runs 1.5 hours, how many trays/minute would you serve?
1.5 hours x 60 min/hour = 90 minutes 400 / 90 = 4.4 trays/minute
Approximately _____ employees are necessary for everyday coverage of full-time positions Full time employees are generally available an average of ____ days per year
1.55 236
What to do if a question does NOT provide % yield but DOES provide % waste/shrinkage during cooking? If shrinkage is 20%, what is the % yield?
100 - % waste/shrinkage = % yield 100 - 20 = 80% yield
A recipe requires 1¾ cup quick-cooking tapioca. Tapioca is purchased in twelve 8-oz boxes in a case and costs $41.88 per case. Three cups of quick-cooking tapioca weighs 1 lb. What is the recipe cost for tapioca?
12 boxes x 8 oz = 96 oz / 16 oz/lb = 6 lb $41.88 / 6 lb = $6.98 per lb Price per cup = $6.98 / 3 = $2.33 per cup x 1.75 = $4.07
How many FTEs will it take to staff 12 positions, 8 hours a day, 7 days a week?
12 positions x 8 hours/day x 7 days/week = 672 672 / 40 hours = 16.8 > 16.5 FTE
A whole, bone-in ham weighs 18 lbs as purchased (AP) has an edible portion yield (EP) of 56%. Each ham costs $32.94. What is the invoice cost to serve 85 lbs of cooked, sliced ham?
18 lb x 0.56 = 10.08 lb 85 lb / 10.08 lb = 8.43 > 9 lb 9 lb x $32.94 = $296.46
Nine pounds of meat was purchased, it has a 65% yield. How many 5 oz servings will you get?
18.72 servings (technically 18)
What is a normal inventory turnover rate range?
2-4x
The foodservice manager has determined that the desired percentage for food cost should be 34%. Using the factor pricing method, what would be the selling price for the pasta primavera if the recipe cost is $2.65 raw food cost/portion?
2.65 / 0.34 = 7.79
20 FTEs produced 2700 meals during one 40 hour week. How many meals were produced per labor hour??
20 FTEs x 40 hours = 800 total hours 2700 meals / 800 hours = 3.375 meals/labor hour
How much ground beef should be purchased to produced twenty, 4 oz servings if it has 50% yield?
20 servings x 4 oz/serving = 80 oz 80 oz / 16 oz = 5 lbs (EP) 5 lbs / 0.5 = 10 lb to purchase of raw product
Apricots have a yield of 94%. If an apricot jam recipe calls for 6 lb of trimmed apricots, how many batches of jam can be made from a 24-lb bushel?
24 lb x 0.94 = 22.56 lb 22.56 lb / 6 lb = 3.76
Using a #12 disher, how many servings would be in 5 gallons of cole slaw?
240 servings
Cafeteria is open 3.5 hours. Seats turn over 1.5 times per hour. You need to seat 250 customers. How many seats do you need?
3.5 x 1.5 = 5.25 can be served from 1 seat 250 / 5.25 = 48 seats needed
Brownies have a 75% acceptance rate. The census is 450. If 90% of the patients choose their menu, how many brownies will you need?
304 brownies
If the salad prep person can make 35 salads in 30 minutes, how many salads can they make in 4 hours?
4 hours = 8x 30 minutes 35 x 8 = 280 salads in 4 hours
If 4 people work 40 hours each and 3 people work 20 hours each, how many FTE's does this equal?
4 x 40 hours = 160 hours 3 x 20 hours = 60 hours 160 + 60 = 220 hours 220 hours / 40 hours = 5.5 FTEs
What is the payback period for a new espresso machine that costs $4,500 and is expected to generate a yearly income of $2,420?
4500 / 2420 = 1.86
A foodservice organization has seven 40 hour employees, five 20 hour employees, and three 16 hour employees. How many FTEs are involved?
7 x 40 = 280 5 x 20 = 100 3 x 16 = 48 280 + 100 + 48 = 428 total hours / 40 = 10.7 or 10.5 FTE
Using a #16 scoop, how many quarts of batter would you use to make 144 muffins?
9 quarts
You purchase an 18 lb. ready to cook turkey at $0.68/lb. The AP price is $12.24. After cooking and slicing, edible portion is just 9.9 lbs. Determine EP cost per pound.
AP price / cooked edible portion weight $12.24 / 9.9 lbs = $1.24 EP cost/lb
The minimum number of employees needed to staff a facility, counts productive hours (hours actually worked)
Absolute FTE
Inventory turnover rate =
Average food cost (cost of sales) / average cost of inventory
Determine BE in SV using following info... FC = $25,000 VC = $60,000 Sales = $100,000 Explain what this means
BE = $25,000 / 1 - ($60,000 / $100,000)= $62,500 To breakeven, you must bring in $62,500 in sales
Example of BEP in number of units sold Determine the BEP using the following info: Fixed costs: $50,000 Selling price: $5.00 Variable costs: $3.25 Explain what this means
BEP = $50,000 / $5.00 - $3.25 $28,572 To break even, you need to sell $28,572 average priced meals If you sell less than this, you lose money If you sell more than this, you gain money/make a profit
Differentiate between breakeven point and breakeven in sales volume calculations
BEP = FC / (SP - VC) Used when asked to calculate # of average priced meals/units to sell to breakeven. BE in SV = FC / 1 - (VC / SV) Used when asked to calculate $$ of sales that must be brought in to breakeven
Adjusted FTEs also take into account what?
Benefit days and days off
Cost per pound: $4.89 Purchased weight: 29.75 lb Purchased cost per lb: $145.48 Expected yield: 70% Cooked weight: ?? Cooked cost per lb ??
Cooked weight = 20.825 lb Cooked cost per lb = $6.99
The total value of food in inventory on September 1 is $9,130. The facility purchased $2,000 of food during the month of September. October 1 inventory is $6,800. What is the cost of food available for the month of September?
Cost of food available = beginning inventory + cost of food purchased 9,130 + 2000 = $11,130
Daily food cost percentage =
Daily food cost / daily income
If leftovers cannot be used, what are the 2 plausible outlets?
Discard or donation
In calculating EOQ, what do the following mean? F S C P What is the calculation?
Fixed cost of making an order Sales or usage in units/year Carrying costs of inventory (holding cost) Purchase price per unit SQUARE ROOT OF (2)(F)(S) / (C)(P)
Food cost = _______ + ________
Food purchased + food taken from inventory
Total # employees required = _______ + ________ Another method?
Full time positions + relief employees # full time employees x 1.55
Sales $127,771 Cost of Sales $54,779 Salaries $31,324 FICA $4,380 Benefits $8,191 Utilities $3,697 Supplies $4,272 Depreciation $16,579 Taxes $2,324 Calculate Gross profit Net profit Profit margin
Gross profit = $127,771 - $54,779 = $72,992 Net profit = $127,771 - ALL = $2,225 Profit margin = $2,225 / $127,771 = 0.017 = 0.02 profit margin
Prime cost method example Determine selling price Raw food cost: $1.80 Labor cost: 5 min at $12/hour Food cost %: 0.333 Labor cost %: 0.467
Labor cost = 5 min/60 min = 0.08333 x 12 = $1.00 Step 1: prime cost = $1.80 + $1.00 = $2.80 Step 2: 0.333 + 0.467 = 0.8 = 80%100 / 80 = 1.25 mark up Step 3: $2.80 x 1.25 = $3.50 selling price
FTE/day FTE/week FTE/year
Labor hours worked per day / 8 hours normal work load Labor hours worked per week / 40 hours normal work load Labor hours worked per year / 2080 hours normal work load
If food cost percentage is 30%, and raw food cost of item is $0.18 what is the selling price using the factor method? If including hidden costs?
Mark up factor = 100 / 30 = 3.3 Selling price = 3.3 x $0.18 = $0.59 3.3 x (0.18 + 0.018) = $0.65 selling price
You are to cook chili and need to make 100, ½ c servings. The recipe calls for 25 ½ lbs of ground beef. You have 15 lbs in stock. The cost of the meat is $4.25/lb. How much more meat should you purchase?
Need 10.5 lb at $44.63
To determine seat turnover...Calculation If you have 150 customers and 100 seats, what is the seat turnover?
Number of customers per meal / number of seats 150 / 100 = seats turnover 1.5 times during meal period
What is the order point for peaches if, on average, two cases are used each day, two cases are needed as safety stock, and it takes 10 days from placing the order until it is delivered?
Order point = (average daily use)(lead time) + safety stock Order point = (2 avg daily use)(10 days) + 2 safety stock = 22 When supply drops to 22 cases, it is time to reorder
If the ingredient cost to make a casserole is $112.50 and the number of portions is 50, what is the actual portion cost per portion if there were 5 portions left over?
Portion cost (normal) = $112.50 / 50 = $2.25 Actual portion cost = $112.50 / 45 = $2.50
Pre-diced tomatoes cost $1.50 per lb. A bulk order of whole tomatoes cost $24 for 50 lbs. The yield is 75%. It takes an employee 1.5 hours to clean, core and dice the tomatoes. The employee is paid $11.50 per hour. Is buying pre-diced or whole/bulk more cost efficient?
Pre-diced: $56.25 Whole/bulk: $41.25 Buying whole and paying employees to prep is more cost efficient
Calculate the EOQ if... F = $10 S = 100 cases napkins C = 20% P = $10/case
Square root of (2)(10)(100) / (0.2)(10) = square root of 1000 = 31.62 EOQ
Average check Define Calculation If lower than normal, what are 2 solutions?
The average amount a customer spends on a meal Total sales / total # customers served If lower > try new menu items or promotions
Using popularity index to forecast future needs If you expect to serve 300 customers next Friday, how many servings of carrots can you expect to serve? Friday... Broccoli: 82 Green beans: 33 Carrots: 89
Total = 204 89 / 204 = 43% 300 expected x 0.43 = 129 expected servings
What is the popularity index for green beans on Wednesday?Broccoli: 78 Green beans: 35 Carrots: 92
Total = 205 35 / 205 = 17%
Cost of profit pricing example Fixed cost = 25% Labor cost = 35% Profit cost = 10% Food cost $0.78 Find selling price
Total costs as percentages = 70% Food cost % = 100 - 70% = 30% Selling price = food cost / food cost % $0.78 / 0.30 = $2.60 selling price
Actual portion cost =
Total ingredient cost / number of ACTUAL servings
The amount of servable food following required production processes such as defrosting, trimming, cooking, and portioning. Greatly influences the cost of the prepared food =
Yield
