Excel Form Terminology Terms to Review: As Purchased (A.P.): The condition or cost of an item as it is purchased or received from the supplier. Unit Cost: The price paid to acquire one of the specified units. (A.P. $/ # of units = $ per unit) Yield %: In this section you will notice that is states 100% down the entire column. This will remain true for ingredients not requiring trim. Leave those ingredients as 100% yield. If a product requires trim, you will need to look up their average yield found in your eBook in chapter 11. Edible Portion: The amount of a food item available for consumption or use after trimming or fabrication; a smaller, more convenient portion of a larger or bulk unit. The form will automatically change the extension price once you adjust the yield % Total Recipe Cost: The program automatically adds up the total cost of the ingredients for your plugged in recipe. This will represent the total cost of ingredients you are using out the ordered inventory as a whole. It does not reflect overhead, labor, fixed expenses or profit. Yield: The form automatically lists 1 as the yield. This is the section where you enter the yield your recipe serves. You were required to make the recipe for a minimum of 10 or a maximum of 25 people. Cost per Portion: The amount of the total recipe cost divided by the # of portions produced from that recipe; the cost of one serving. (Recipe $/ # of portions = $ per portion).
Excel Form Assistance How to Add Rows To insert rows to add more space, right click on a cell line, select add row above or below. A new blank line with out formula cells was inserted. You must copy a line with formulas preset above in order to paste into the newly added cell row. This will copy the preset formulas into your newly added row.
Online Help To increase your familiarity, there are many tutorials online to increase your ability to use MS Excel. Enter any of the links provided into your search browser to get additional video assistance going step-by-step. 1) Scroll to bottom of page to view video tutorial. http://www.chefs-resources.com/Recipe-Templates-Excel 2) Click on topics you need assistance understanding: http://people.usd.edu/~bwjames/tut/excel/ 3) This video goes through the basics of an excel spread sheet: http://www.youtube.com/watch?v=8L1OVkw2ZQ8
How to cost your menu: Your menu items selected as the most expensive will be used in order to come up with a component cost then dish or item cost for this exercise, using the model Excel Recipe program provided in class. Follow the step-‐by-‐step instruction in order to successfully utilize the form provided. 1. Menu Items: Select the most expensive dish with in each section on your menu. You will need recipes for each component even garnishes you are considering. All ingredient costs will need to be factored. Pastry: 1 Hot Food, 1 composed cake, 1 petit four = 3 complete items. Culinary: 1 Appetizer, 1 Soup or Salad, 1 entrée, 1 dessert = 4 complete items. 2. Recipes: Bring in or select recipes online that reflect the items you have on your menu. You will need to modify the recipes to be enough for a min. of 10 to 25 max. servings as the yield. Modify using the Working Factor if necessary. 3. Excel Plug In's: Transfer the recipe measures for each ingredient into the downloaded recipe costing sheet (far left column enter the number) the second column choose the unit of measure available. 4. Find AP Prices: Download the AP Cost Excel Sheet or use the wholesale providers below to find the AP Cost of the items you will be using on your menu. You may need to source additional items that I do not have by Googling: Wholesale [insert ingredient] prices in the Google search bar. 5. AP Unit Price Calculation Method 1: AP Price/ total weight = Price per (unit of measure) Ex: Sugar, granulated $25.95 for 50 lb bag. $25.95/50 lbs = $.519 = (round up) $.52 per lb. 6. AP Unit Price Calculation Method 2: (Step 1) AP Price/ Total number of packages = Price per pack (Step 2) Price Per pack/total weight = Price per (unit of measure). Ex: Salt, Kosher $17.45 Case/12 ea. 3 lb. boxes. (Step 1) $17.45/ 12 = $1.45 per pack (Step 2) $1.45/3 lbs. = $.484 per lb. (round up) = $.49/lb. 7. Using a Spice factor: When items used with in a recipe calculate to less than $0, you still paid for the ingredient at AP cost to be in your facility. What companies will do is include a spice factor of 2% against the entire recipe cost to add the value back into your recipe cost. This total would be entered in the cost of any accompaniment section of each recipe where needed. If a total recipe cost you $10.29 multiply it by .02 and enter $.21 in the accompaniment section.
8. Determine your Yield %: The book of yields is a good place to find every ingredient listed at an average yield. Use chapter 11 to determine the best matching yield to the ingredients you are using. Only plug in if there is trim on a product otherwise leave at 100%. This will program will calculate the EP price. 9. Total Recipe Cost: Once your unit costs of measure are plugged in the program calculates the total cost of the recipe you inserted. Below the total cost of each recipe enter the number of people you chose to serve using the recipe size selected. You need this information to give you the cost per serving. 10. Calculate the Cost Per Serving. The program is dividing the total cost by the # of servings you wish to provide. Remember, a prix fixe menu can serve smaller portion sizes due to the many items you are offering on your menus. Ex: A steak dinner could use 6 oz. portion or cake could be cut into 16 slices rather than 12. Ex: Total Recipe Cost: Roasted Carrot Cake w/ Brown Butter Buttercream $12.35/ 12 servings = $.77 per person. 11. Menu price section: Leave the menu price section blank when using for your project forms. This section would be filled out when determining the price to for an individual a la carte or items sold in retail. Once filled in it would automatically calculate the individual food cost.
Organize your Recipes Title your each of your components at the top of the page where it notes “Your Recipe Name”. Once you have plugged in the each recipe into the data forms you will need to total the costs of your individual components to create the dish or assembled item. Example 1: Baby Octopus Satay with Pickled Cauliflower w/ Siracha Description Per person Cost baby octopus satay $.80 pickled cauliflower $.16 Siracha $.02 Total Recipe Cost $.99 Example 2: Caramel “Fluer de Sel” Macaron Description Per person Cost Caramel macaron $.10 Salted Caramel Ganache $.59 Fluer de Sel $.01 Total Recipe Cost $.79
Pricing Strategy: You cannot base your pricing solely on cost; however, you better know your actual costs before embarking on your pricing journey. Labor, ingredients, and overhead head expenses can be included, but you must remain competitive to keep people in the door. There is only so much a person is willing to pay for burger no matter how much you need to charge to cover your costs. A reputation as being over-‐priced will be as hard to eradicate as a bad tattoo.
Typical Industry Markups:
Select any of the following to be applied to the recipe costs you have calculated using the Excel forms worksheet in class. The selections would be applied on a per item basis. 100% Indulgent Items: Coffee, dessert, wine, spirits, cocktails, etc. Calculation: Item ingredient x 2 = Menu Price 300% Considers Overhead: Includes; prep/labor/clean up/cooking/energy costs etc. Calculation: Item Cost x 3 = Menu Price 500% Highly Indulgent or Rare Items: Foie Gras ($60/lb.), Pufferfish ($280 per 2 people) or use Hogo Rum ($100/oz) Calculation: Item cost x 5 = Menu Price
Include in your Pricing Summary: Once you have totaled the cost for the most expensive item in each category, you will need to mark up those dishes/items individually. You would use the total recipe cost for the item title and multiply them by your chosen mark up. Add the new costs together to determine the calculated menu price and then decide what your customers will pay. Costs Mark up New Costs What will they pay? $1.94 x 3 $5.82 Item title 1 $4.62 x 2 $9.24 Item title 2 $8.02 x 3 $24.06 Calculate Decide per Item title 3 Menu Price person $3.15 x 2 $6.30 Item title 4 charge $17.73 w/ Markups $42.52 $45.42 $55 Menu costs
Determine Overall Food Cost %
You will be required to determine your overall menu food cost percent (OFC%). Formula: Menu Cost/Menu Price per person = OFC% $17.73 Menu Cost/ $55 Menu Price pp = 32%
Questions to Consider Each menu item will be marked up individually and produce a range of food cost percentage from single digits to the high 40s. These are some questions to consider when deciding your prices. · What kind of menu item is it? (e.g., appetizer, entrée, dessert, side dish) · What is the direct labor involved in its preparation? Does it require skilled preparation or just simple heating and plating? · What is the portion size? · Is it a seasonal item with limited availability? · What are competitors charging for similar menu items? · Is it is “commodity” or a “specialty” item on your menu? · What kind of restaurant are you? (e.g., fast-‐food, fast-‐casual, limited-‐service, fine-‐dining) · What meal period are we pricing it for? (e.g., breakfast, lunch, dinner) · Where is the restaurant? (e.g., center city, suburban, office building, resort area) · What are the accompaniments served with it? · Who is your target market or clientele? (e.g., local residents, tourists, business people, shoppers) · What is the perishability of the product and its cost? (e.g., live lobster, fresh seafood) · What is the service delivery method in the restaurant? (e.g., table service, self-‐service, drive-‐thru) · What is the check average you seek? · What are the prices of other menu items in the same menu category and the spread among items in other categories? · What are the prices of complimentary and competing items of the menu? · What is the ambience of the restaurant? · What is the plate presentation for the menu item? · Is there live entertainment or music in the restaurant? · What is the status of the restaurant in the market? Is it one of the top restaurants in the market?
Psyche Out Your Customers Psychological aspects of menu pricing reflect the attitudes and images in the minds of the customer. There are several psychological aspects of menu pricing: odd-‐cents pricing, mental accounting, reference pricing, and time-‐and-‐place factors. Odd-‐cents pricing is a technique used in retail pricing of everything from clothing to cars and real estate. Prices are stated in amounts that end in a number nine or five. Psychologically, it will be seen as a lower price than if the price ended in a zero. For example, $9.95 is preferred to $10. Psychologically, it is rounded to $9 rather than $10. The element of low-‐price perception is an important pricing strategy. Using menu prices with digits ending in .25, .50, .75, and .95 or .29, .59, .79 and .99 does automatically send a message of QSR quality. Using even-‐style pricing does send a message of higher quality. Source information: Dr. David Pavesic is a former restaurateur who now teaches courses on restaurant cost control, financial management, and food production at the Cecil B. Day School of Hospitality at Georgia State University in Atlanta, GA.
Name: _________________________________________________________________________
4 Course Culinary Menu Cost Break down When costing a pre-‐fixe menu, you only need to cost out the most expensive items on the menu. This will ensure you cover your base costs. If a customer orders from the least expensive items, you will benefit with more profit margin. Be sure to include all garnishes ingredients to create a fully composed item. Provide recipes for each. You will add up the total costs of each finished item. Select the markup for each individual category as well. 1st Course:
Most Expensive Appetizer
Title: ____________________________________________________________________________________________________
Item Cost $______________
___________________________________________________________________________________________________________ Circle Mark up Choice: 2
3
5
2nd Course:
Most Expensive Soup or Salad
Title: ____________________________________________________________________________________________________
Item Cost $______________
___________________________________________________________________________________________________________ Circle Mark up Choice: 2
3
5
3rd Course: Most Expensive Entrée Title: ____________________________________________________________________________________________________
Item Cost $______________
___________________________________________________________________________________________________________ Circle Mark up Choice: 2
3
5
4th Course:
Most Expensive Dessert
Title: ___________________________________________________________________________________________________
Item Cost $______________
___________________________________________________________________________________________________________ Circle Mark up Choice: 2
3
5
Using pricing psychology decide what price you would charge per person.
Total Menu Cost
$______________
Prix-‐Fixe Menu Price
$______________
Name: _________________________________________________________________________
(3 items) Grande Pastry Buffet Menu When costing a pre-‐fixe menu, you only need to cost out the most expensive items on the menu. This will ensure you cover your base costs. If a customer selects quantities from the least expensive items, you will benefit having good product mix of expensive to least expensive. Be sure to include all garnishes ingredients to create a fully composed item. You will need recipes for each component involved in the creation of the menu item. 1st Category:
Most Expensive Hot Food Dessert
Title: ____________________________________________________________________________________________________
___________________________________________________________________________________________________________ Circle Mark up Choice: 2
3
5
Item Cost _________ x _______Markup =
$______________
2nd Category: Most Expensive Assembled Cake/Pastry Item
Title: ____________________________________________________________________________________________________
___________________________________________________________________________________________________________ Circle Mark up Choice: 2
3
5
Item Cost _________ x _______Markup =
$______________
3rd Category: Most Expensive Dessert Title: ____________________________________________________________________________________________________
___________________________________________________________________________________________________________ Circle Mark up Choice: 2
3
5
Item Cost _________ x _______Markup =
$______________
Total Menu Cost
$_____________
Prix-‐Fixe Menu Price
$______________
Using pricing psychology decide what price you would charge per person.