Food Cost
Costs involving the purchase of food for restaurant inventory
What is Food Cost
Costs involving the compensation of employees for their labor.
What is Labor Cost?
Costs involving the maintaining of the business property.
What are overhead or operating costs?
The formula “cost per portion ÷ selling price” calculates what?
What is food cost percentage
Costs which remain constant regardless of business activity.
What are Fixed Costs?
Food Cost should generally be no higher than _______ % if the labor is 20%.
What is 40%
If I get paid $12/hr and work 1/2 and hour making mac n cheese, what will the labor cost be in $?
What is $6
The example of light bill or a utility payment will fit into what part of the restaurant cost?
What is overhead or operating cost?
We list items on a _________ in a way that we would want a customer to order them in our restaurant.
What is a Menu
Costs that change daily, weekly, or monthly.
What are Variable Costs?
This type of a restaurant generally has a quicker ticket time and premade items to get to customers faster to generate a higher food cost.
What is a Fast Food Restaurant?
My total labor % shouldn't be any higher than ______ % unless I am adding taxes or other payments to the government.
What is 30%
According to the statements and video portion clips the percentage of overhead or operating costs should be around or less?
What is 30%
FIFO refers to whenever I’m stocking products, move the old stuff up to the front, put the new stuff behind it, so now my products are _____________ and I’m using items in order by expiration date.
What is Rotating?
Method in which the item’s recipe cost is multiplied by a set percentage, then the product is added to the item’s recipe cost to determine the menu price.
What is Straight Mark-Up Menu Pricing Method
What is the food cost percentage of a restaurant with a $21.99 meal and a food cost of $6?
What is 27%
If the business wants to make 10% in profit and the food cost is 35%, the labor is 30% what will the operating/overhead cost need to be?
What is 25%
When thinking about mortgage/rent payments to operate a business they are what type of costs?
What are fixed costs? They may change every year but usually stay the same for 12 months at a time.
Watch your ____________, and take inventory of what you have. If you feel like you have too much of a product on your shelves, don’t order as much.
What is Inventory?
Amount of food product or number of portions a recipe makes
Yield (Recipe)
Part 1 - If I my food cost is $3.99 and that equals 25%, what will my menu price be?
Part 2 - And if my labor and overhead cost are 60% of this total together, what will I make in profit combining the original food cost?
Must answer both within .02 cents
Part 1 - What is $15.96
60% = $9.58 then + $3.99 = $13.57
$15.96 - $13.57 = $2.38 (Part 2)
If the total time spent making a dish and portioning out items is 1 hour and 15 minutes and I make $8 an hour, how much will I get paid for this task?
What is $10
1 Hour = $8
15 Minutes = $2
What is my overhead cost in $ if 30% of the total bill of $9.99 is allocated to operation costs?
What is $2.99 or $3
Each recipe makes ___________ portions, and you will only be selling one portion at a time, so you still need to determine what your cost per portion is. To do this, divide the total recipe cost by the number of portions the recipe makes.
What is Multiple
Process of adjusting a recipe to accommodate the yield and measuring system needed
What is Recipe Conversion