Chapter 1: Principles of Control in a Foodservice Operation

Transcription

1 Appendix A List of Equations Used Chapter 1: Principles of Control in a Foodservice Operation Relationship between cost, sales, and profit (or loss) Profit = Sales Cost Cost = Sales Profit Ratios X:Y = X = X to Y Y Comparing Product Prices Considering pack size Number of Bags per Case Weight per Bag = Weight per Case Price per Weight Measure (ex. pound) = Food Cost per Meal Food Cost per Meal = Price per Case Weight per Case Cost of Food to Prepare Meals Number of Meals Served 252 Appendix A.indd 252 1/23/2013 1:39:32 PM

2 Appendix A List of Equations Used 253 Labor Cost per Meal Labor Cost per Meal = Variance Calculations Budget Actual = Variance Labor Cost Meals Served Variance as a percent difference Variance Amount 100 = % Difference Budgeted Amount Chapter 2: Menu Planning as a Control Tool Menu-Pricing Methods Food cost percentage method Factor system Food Cost Desired Food Cost % 100% Pricing Factor = Desired Food Cost % Food Cost Pricing Factor Contribution margin method Selling Price Variable Costs = Contribution Margin Product Cost + Desired Contribution Margin Prime cost method Prime Cost = Food Cost + Wages + Employee Benefits and Payroll Taxes Prime Cost Prime Cost % Texas Restaurant Association (TRA) Markup Method Actual Food Cost Desired Food Cost % Appendix A.indd 253 1/23/2013 1:39:36 PM

3 254 Controlling Costs in Foodservice Chapter 3: Cost Control in Purchasing, Receiving, Storage, and Inventory Management Buyer s Cost from Vendor s Cost and Markup % Buyer s Cost = Vendor s Cost + (Markup % Vendor s Cost) Product Yield Percentage Product Yield % = Edible Portion (EP) Weight 100 As Purchased (AP) Weight EP Cost EP Cost = AP Cost Product Yield % Estimating Storage Needs Dry goods Estimated Storage Space Needed = Number of Meals Served 0.75 Sq. Ft. Refrigerated or frozen goods Estimated Storage Space Needed = Number of Meals Served 1 (or 2) Cu. Ft. Cost of Food Sold Cost of Food Sold = (Beginning Inventory + Purchases) Ending Inventory Food Cost Percentage Food Cost % = Cost of Food Sold 100 Sales Average Inventory Value Average Inventory Value = Inventory Turns Inventory Turns = (Beginning Inventory Value + Ending Inventory Value) 2 Cost of Food Sold Average Inventory Value Appendix A.indd 254

4 Appendix A List of Equations Used 255 Chapter 4: Cost Control from Production to Waste Management Cost per Unit Cost per Unit = Cooking Loss Cost per Unit = Purchase Unit Cost Number of Units Purchase Unit Cost Number of Units EP Weight Product Yield %* = AP Weight (*from Standard Yield Table) Chapter 5: Labor Cost Control Employee Turnover Rate Employees Separated During Year Employee Turnover Rate = 100 Average No. of Employees on Staff During Year Labor Cost Percentage Labor Cost % = Labor Cost 100 Sales Covers per Labor Hour Covers per Labor Hour = Labor Cost per Cover Labor Cost per Cover = Labor Cost per Meal Labor Cost per Meal = Covers Labor Hours Labor Cost Covers Labor Cost Meals Served Labor Cost per Labor Hour Labor Cost per Labor Hour = Labor Cost Labor Hours Meals per Productive Labor Hour Meals per Productive Labor Hour = Meals Served Productive Labor Hours Appendix A.indd 255

5 256 Controlling Costs in Foodservice Chapter 6: Beverage Cost Control Cost of Beverages Sold Cost of Beverages Sold = (Beginning Inventory + Purchases) Ending Inventory Beverage Cost Percentage Beverage Cost % = Cost of Beverages Sold 100 Beverage Sales Pricing Methods Beverage cost percentage method Factor system Beverage Cost Desired Beverage Cost % 100% Pricing Factor = Desired Beverage Cost % Beverage Cost Pricing Factor Contribution margin method Contribution Margin = Selling Price Variable Costs Beverage Cost + Desired Contribution Margin Prime cost method Prime Cost = Beverage Cost + Wages + Employee Benefits and Payroll Taxes Prime Cost Prime Cost % Chapter 7: Facilities Management as a Cost Control Tool Natural Gas Conversions 1 Therm of Natural Gas = Approx. 100 Cu. Ft. of Natural Gas = Approx. 100,000 BTUs of Heat Energy Therms to kwh 1 Therm of Natural Gas = 29.3 kwh of Electricity Appendix A.indd 256

6 Appendix A List of Equations Used 257 Chapter 8: Operating Budget and Performance Reports Operating Budget (Also, see Chapter 11) Prime cost Prime Cost = Total Cost of Sales + Total Labor Controllable income Controllable Income = Total Sales (Prime Cost + Total Other Controllable Expenses) Operating income Operating Income = Controllable Income Total Noncontrollable Expenses Performance Report Variance $ Variance $ = Actual Budget Variance Percentage Variance % = Variance $ 100 Budget Chapter 9: The Capital Budget Depreciation (Straight Line) Annual Depreciation = Asset Cost Salvage Value Anticipated Useful Life in Years Comparison of Capital Purchase Options Operating cost over life expectancy Operating Cost over Life Expectancy = Annual Operating Cost Life Expectancy in Years Total cost Total Cost = (Asset Cost + Operating Cost over Life Expectancy) Salvage Value Payback period Annual Savings = Current Operating Cost Operating Cost of New Equipment Payback Period = Asset Cost Annual Savings Appendix A.indd 257

7 258 Controlling Costs in Foodservice Chapter 10: Revenue Control Cashier Checkout Form Cash owed for deposit Cash Owed for Deposit = Cash Sales (from register) Credit Card Tips Total Total owed for deposit Total Owed for Deposit = Cash Owed for Deposit + Checks Owed for Deposit Actual cash for deposit Actual Cash for Deposit = Total Cash Drawer Credit Card Tips Total Actual deposit Actual Deposit = Actual Cash for Deposit + Actual Checks for Deposit Chapter 11: Financial Management Statement of Income (P&L) Profit or loss Revenue Expenses = Profit (Loss) Prime cost Prime Cost = Total Cost of Sales + Total Labor Controllable income Controllable Income = Total Sales (Prime Cost + Total Other Controllable Expenses) Operating income Operating Income = Controllable Income Total Noncontrollable Expenses Income before income taxes Income before Income Taxes = Operating Income [Corporate Overhead + Interest Expense + Other (Income)/Expense] Net income Net Income = Income before Income Taxes Income Tax Percent of total sales column Cost of sales line items Percent Total Sales = Amount (In Dollars) 100 Product Sales Appendix A.indd 258

8 Appendix A List of Equations Used 259 All other line items Percent Total Sales = Amount (In Dollars) 100 Total Sales Balance Sheet Assets Assets = Liabilities + Equity Comparative Analysis of Statements of Income Difference % Difference $ Difference % = 100 Prior-Year Value Percent Change Percent Change = Current Period % Prior Period % Operating Ratios (Activity Ratios) Average check ratio Average Check = Profit margin ratio Sales Customer Count Profit Margin = Net Income 100 Sales Chapter 12: Controlling Costs through Technology No formulas given. Appendix A.indd 259