Calculating Standard Portion Cost
Formula: Purchase price per unit DIVIDED by the number of portions per unit.
Example: to determine the cost of a serving of canned green beans:
Step 1: Determine purchase price per unit: Purchase price per case: 6-#10 cans = $16.95 $16.95/ 6 = $2.82 per #10 can or per unit
Step 2: Determine number of portions per unit Number of portions per #10 can: 25, 4 oz portions
Step 3: Divide purchase price per unit by the number of portions per unit $2.82/ 25 = $0.11 per 4 oz serving
Calculating Portion Cost with Yield Loss
Step 1: Look up the yield loss on red potatoes (81 percent).
Step 2: Look up the price per pound of red potatoes from the produce invoice: $.70/pound
Step 3: Determine the number of servings from one pound=4.7.
Step 4: Divide the original price per pound by the yield $.70 ÷ .81 = $.86. (Note: 81 percent is .81 as a decimal)
Step 5: Divide the new cost per pound of potato by the number of 1 oz (1/2 cup) servings of potato.
$.86 ÷ 4.7 = $.18 per serving of potato
Consider the following factors that vary yield loss:
✓ employee skill and experience (a skilled employee will waste less)
✓ size of the product (large potatoes will have less waste than small)
✓ freshness of your product (older potatoes will have more bruising and waste)
Calculating Standard Recipe Cost
Formula: List of each ingredient’s cost ADDED together DIVIDED by the recipe yield
Example: Egg Bake for 50 clients:
50 eggs @ 1.60/doz. ($.133/egg)
50 x $.133 = $6.67 for 50 eggs
2 cups milk @ $4.25/gallon (16 cups/$4.25 for 1 gallon= $.266/cup)
2 x $.266 = $.53 for 2 cups milk
2 cups croutons @ $4.25
4 cups cheese @ $11.80
$6.67+$.53 + $4.25 + $11.80 =$23.25
Total Cost per Client/Portion
Food Cost $23.25
DIVIDED by # of clients: ÷ 50
$.47 per client/portion of egg bake
A good reference text (such as Food for Fifty) provides tables of common can sizes and approximate numbers of portions, common pan capacities, cooking yield or loss and common ladle and disher equivalents to help you determine standard portion sizes.