The gross weight
average coverThe average amount spent by a customer in a meal period or month
baker’s percentageA formula that states the ingredients in relation to the amount of flour
breakeven pointThe point at which cost and revenue are equal
capitalPhysical assets or money used in the production of goods and services
closing inventoryThe amount of product on hand at the end of the inventory period
contribution marginPortion of sales that can be applied against fixed costs; gross sales minus variable costs
count1. Number of items in stock 2. Number of items in a case or to the pound or kilogram
directsProducts purchased and used as soon as they arrive or on the same day
edible product (EP) weightThe amount of usable product after cleaning or portioning
extendingCalculating the total value of goods on hand after taking a physical inventory
FIFOFirst in, first out; a system of managing inventory so that the product received first gets used first
fixed costsCosts which do not change based on the volume of business
food costThe direct cost of food
inventoryTotal goods in stock at any one time
invoiceA document indicating the amount owed for goods or services
labour costThe cost of labour required for a fixed period of time; usually reflected as a percentage of sales
menu engineering1. To maximize profitability by encouraging customers to buy what you want them to buy 2. Structuring of a menu to balance low and highprofit items to achieve overall target food costs and profit
opening inventoryThe amount of product on hand at the start of the inventory period.
overheadThe ongoing expenses required to operate a business that are not direct costs of producing goods or services
packing slipA document indicating the products shipped for delivery
par stockMaximum amount of an item that should be in stock at any one time
perpetual inventoryA system of tracking product as it is received and used, thereby keeping a running total of items on hand
physical inventoryA physical inventory requires that all items in storage be counted periodically.
pointofsale (POS) systemA computerized system that coordinates customer purchases, sales, and costs through various linked terminals in a business
portion costThe cost of a single portion
productivityA measure of the amount of work done in a fixed period
profitAny revenue left over after all costs have been covered
profitabilityThe amount of profit a business generates compared to sales, usually reflected in a percentage
purchase orderA document indicating the approval of a quantity of goods ordered from a supplier
ratioThe proportion between two amounts, usually with one item being referred to as 1
receiverThe individual responsible for accepting and checking deliveries
rotateTo rearrange inventory so that the oldest product is placed in front of newly acquired product
salesTotal revenue received for goods or services in a fixed period
specificationsPurchase criteria such as size, grade, packaging, market form
specific gravityThe density of a substance (mass for a given volume), when compared against a reference substance, such as water
standardized recipeConsistent, tested recipe that is used by everyone in the kitchen to prepare the same product
storesGoods taken from the storage area and used
turnover1. Number of times in a period that inventory is turned into revenue 2. Number of times in a day that a seat is filled
variable costsCosts that change based on business volume or sales
volume1. Quantity of product or business 2. A type of measurement that measures the space taken up by a substance
yieldAmount of usable product
yield testA test to determine the net or edible product (EP) weight from the gross or as purchased (AP) weight
]]>Version  Date  Change  Details 

1.0  September 4, 2015  Added to the B.C. Open Textbook Collection.  
1.1  September 27, 2018  The following changes were part of a project to standardize BCcampuspublished books. 

1.2  June 4, 2019  Updated the book's theme.  The styles of this book have been updated, which may affect the page numbers of the PDF and print copy. 
Learning Objectives
Type of Measurement  Unit  Symbol 

length (distance)  metre  m 
mass (weight)  gram  g 
capacity (volume)  litre  L 
temperature  degrees Celsius  °C 
Prefix  Symbol  Meaning 

kilo  k  1000 
hecto  h  100 
deca  da  10 
deci  d  1/10 or 0.1 
centi  c  1/100 or 0.01 
milli  m  1/1000 or 0.001 
Unit  Abbreviation  Length (Distance) 

kilometre  km  1000 meter 
hectometre  hm  100 metres 
decametre  dam  10 metres 
metre  m  1 metre 
decimetre  dm  0.1 metres 
centimetre  cm  0.01 metres 
millimetre  mm  0.001 metres 
Unit  Abbreviation  Mass (Weight) 

tonne  t  1000 kilograms 
kilogram  kg  1000 grams 
hectogram  hg  100 grams 
decagram  dag  10 grams 
gram  g  1 gram 
decigram  dg  0.1 g 
centigram  cg  0.01 g 
milligram  mg  0.001 
Unit  Abbreviation  Volume 

kilolitre  kL  1000 L 
hectolitre  hL  100 L 
decalitre  daL  10 L 
litre  L  1 L 
decilitre  dL  0.1 L 
centilitre  cL  0.01 L 
millilitre  mL  0.001 L 
Example 1
Example 2
Example 3
Unit of Measurement  Imperial System  Metric Equivalent  U.S. System  Metric Equivalent 

1 ounce  1 (fluid) oz.  28.41 mL  1 (fluid) oz.  29.57 mL 
1 gill  5 (fluid) oz.  142.07 mL  Not commonly used  
1 cup  Not commonly used  8 (fluid) oz.  236.59 mL  
1 pint  20 (fluid) oz.  568.26 mL  16 (fluid) oz.  473.18 mL 
1 quart  40 (fluid) oz.  1.137 L  32 (fluid) oz.  946.36 mL 
1 gallon  160 (fluid) oz.  4.546 L  128 (fluid) oz.  3.785 L 
Types of Measurement  Conversion 

Weight  1 pound = 16 ounces 
Volume (U.S.)  1 gallon = 4 quarts or 128 (fluid) ounces 
Volume (U.S.)  1 quart = 2 pints or 4 cups or 32 (fluid) ounces 
Volume (U.S.)  1 pint = 2 cups or 16 (fluid) ounces 
Volume (U.S.)  1 cup= 8 (fluid) ounces or 16 tablespoons 
Volume (U.S.)  1 (fluid) ounce = 2 tablespoons 
Volume (U.S.)  1 tablespoon = 3 teaspoons 
Volume (imperial)  1 gallon = 4 quarts or 160 (fluid) ounces 
Volume (imperial)  1 quart = 2 pints or 40 (fluid) ounces 
Volume (imperial)  1 pint = 20 (fluid) ounces 
Volume (imperial)  1 gill = 5 (fluid) ounces or 10 tablespoons 
Volume (imperial)  1 (fluid) ounce = 2 tablespoons 
Volume (imperial)  1 tablespoon = 3 teaspoons 
Length  1 mile = 1760 yards 
Length  1 yard = 3 feet 
Length  1 foot = 12 inches 
When you know  Divide by  To get 

millilitres  4.93  teaspoons 
millilitres  14.79  tablespoons 
millilitres  28.41  fluid ounces (imperial) 
millilitres  29.57  fluid ounces (U.S.) 
millilitres  236.59  cups 
litres  0.236  cups 
millilitres  473.18  pints (U.S.) 
litres  0.473  pints (U.S.) 
millilitres  568.26  pints (imperial) 
litres  0.568  pints (imperial) 
millilitres  946.36  quarts (U.S.) 
litres  0.946  quarts (U.S.) 
millilitres  1137  quarts (imperial) 
litres  1.137  quarts (imperial) 
litres  3.785  gallons (U.S.) 
litres  4.546  gallons (imperial) 
grams  28.35  ounces 
grams  454  pounds 
kilograms  0.454  pounds 
centimetres  2.54  inches 
millimetres  25.4  inches 
Celsius (Centigrade)  multiply by 1.8 and add 32  Fahrenheit 
When you know  Multiply by  To get 

teaspoons  4.93  millilitres 
tablespoons  14.79  millilitres 
fluid ounces (imperial)  28.41  millilitres 
fluid ounces (U.S.)  29.57  millilitres 
cups  236.59  millilitres 
cups  0.236  litres 
pints (U.S.)  473.18  millilitres 
pints (U.S.)  0.473  litres 
pints (imperial)  568.26  millilitres 
pints (imperial)  0.568  litres 
quarts (U.S.)  946.36  millilitres 
quarts (U.S.)  0.946  litres 
quarts (imperial)  1137  millilitres 
quarts (imperial)  1.137  litres 
gallons (U.S.)  3.785  litres 
gallons (imperial)  4.546  litres 
ounces  28.35  grams 
pounds  454  grams 
pounds  0.454  kilograms 
inches  2.54  centimetres 
inches  25.4  millimetres 
Fahrenheit  subtract 32 and divide by 1.8  Celsius (Centigrade) 
Measurement type  Unit  Equivalent 

Length  1 inch  25.4 millimetres 
Length  1 centimetre  0.39 inches 
Length  1 metre  39.4 inches 
Volume  1 fluid ounce (U.S.)  29.57 millilitres 
Volume  1 cup  237 millilitres 
Volume  1 quart  946 millilitres 
Volume  1 millilitre  0.034 fluid ounces 
Volume  1 litre  33.8 fluid ounces 
Weight  1 ounce  28.35 grams 
Weight  1 pound  454 grams 
Weight  1 gram  0.035 ounce 
Weight  1 kilogram  2.205 pounds 
Measurement type  To convert  Multiply by  Result 

Length  Inches to millimeters  25.4  1 inch = 25.4 mm 
Length  Inches to centimetres  2.54  1 inch = 2.54 cm 
Length  Millimetres to inches  0.03937  1 mm = 0.03937 in. 
Length  Centimetres to inches  0.3937  1 cm = 0.3937 in. 
Length  Metres to inches  39.3701  1m = 39.37 in. 
Volume  Quarts to litres  0.946  1 qt. = 0.946 L 
Volume  Litres to fluid ounces (U.S.)  33.8  1 L = 33.8 oz. 
Volume  Quarts to millilitres  946  1 qt. = 946 mL 
Volume  Millilitres to ounces  0.0338  1 mL = 0.0338 oz. 
Volume  Litres to quarts  1.05625  1 L = 1.05625 qt. 
Weight  Ounces to grams  28.35  1 oz. = 28.35 g 
Weight  Grams to ounces  0.03527  1 g = 0.03527 oz. 
Weight  Kilograms to pounds  2.2046  1 kg = 2.2046 lb. 
Metric  U.S. Measurements 

1 millilitre  1/4 teaspoon 
2 millilitres  1/2 teaspoon 
5 millilitres  1 teaspoon 
15 millilitres  1 tablespoon 
30 millilitres  1 fluid ounce 
250 millilitres  1 cup 
500 millilitres  1 pint 
1 litre  1 quart 
4 litres  1 gallon 
Example 4
Example 5
Example 6
Key Takeaway
Before converting a recipe, express the original ingredients by weight whenever possible.Converting to weight is particularly important for dry ingredients. Most recipes in commercial kitchens express the ingredients by weight, while most recipes intended for home cooks express the ingredients by volume. If the amounts of some ingredients are too small to weigh (such as spices and seasonings), they may be left as volume measures. Liquid ingredients also are sometimes left as volume measures because it is easier to measure a litre of liquid than it is to weigh it. However, a major exception is measuring liquids with a high sugar content, such as honey and syrup; these should always be measured by weight, not volume. Converting from volume to weight can be a bit tricky and may require the use of tables that provide the approximate weight of different volume measures of commonly used recipe ingredients. Once you have all ingredients in weight, you can then multiply by the conversion factor to adjust the recipe. When using U.S. or imperial recipes, often you must change the quantities of the original recipe into smaller units. For example, pounds may need to be expressed as ounces, and cups, pints, quarts, and gallons must be converted into fluid ounces.
Example 7
Ingredient  Amount 

Flour  3¼ lbs. 
Baking Powder  4 oz. 
Salt  1 oz. 
Shortening  1 lb. 
Milk  6 cups 
Ingredient  Original Amount (U.S)  Conversion factor  New Ingredient Amount 

Flour  3¼ lbs.  4  13 lbs. 
Baking powder  4 oz.  4  16 oz. (= 1 lb.) 
Salt  1 oz.  4  4 oz. 
Shortening  1 lb.  4  4 lbs. 
Milk  6 cups  4  24 cups (= 6 qt. or 1½ gal.) 
Example 8
Ingredient  Amount 

Flour  1.75 kg 
Baking powder  50 g 
Salt  25 g 
Shortening  450 g 
Milk  1.25 L 
Ingredient  Amount  Conversion Factor  New Amount 

Flour  1.75 kg  2  3.5 kg 
Baking powder  50 g  2  100 g 
Salt  25 g  2  50 g 
Shortening  450 g  2  900 g 
Milk  1.25 L  2  2.5 L 
Ingredient  Amount 

Butter  90 g 
Milk  135 mL 
Water  135 mL 
Salt  5 mL 
Sifted flour  150 g 
Large eggs  3 
Grated cheese  75 g 
Cracked pepper  To taste 
Ingredient  Amount 

Butter  180 g 
Milk  270 mL 
Water  270 mL 
Salt  10 mL 
Sifted flour  300 g 
Large eggs  6 
Grated cheese  150 g 
Cracked pepper  To taste 
Ingredient  Amount 

Butter  270 g 
Milk  405 mL 
Water  405 mL 
Salt  15 mL 
Sifted flour  450 g 
Large eggs  9 
Grated cheese  225 g 
Cracked pepper  To taste 
Ingredient  Amount 

Butter  360 g 
Milk  540 mL 
Water  540 mL 
Salt  20 mL 
Sifted flour  600 g 
Large eggs  12 
Grated cheese  300 g 
Cracked pepper  To taste 
Ingredient  %  Total  Unit 

Flour  100.0%  15  kg 
Water  62.0%  9.3  kg 
Salt  2.0%  0.3  kg 
Sugar  3.0%  0.45  kg 
Shortening  1.5%  0.225  kg 
Yeast  2.5%  0.375  kg 
Total weight:  171.0%  25.65  kg 
Ingredient  %  Total  Unit 

Flour  100.0%  20  kg 
Water  62.0%  12.4  kg 
Salt  2.0%  0.4  kg 
Sugar  3.0%  0.6  kg 
Shortening  1.5%  0.3  kg 
Yeast  2.5%  0.5  kg 
Total weight:  171.0%  34.20  kg 
Ingredient  %  Total  Unit 

Flour  100.0%  10  kg 
Water  62.0%  6.2  kg 
Salt  2.0%  0.2  kg 
Sugar  3.0%  0.3  kg 
Shortening  1.5%  0.15  kg 
Yeast  2.5%  0.25  kg 
Example 9
Ingredient  %  Total  Unit 

Flour  100.0%  14.62  kg 
Water  62.0%  9.064  kg 
Salt  2.0%  0.292  kg 
Sugar  3.0%  0.439  kg 
Shortening  1.5%  0.219  kg 
Yeast  2.5%  0.366  kg 
Total weight:  171.0%  25.00  kg 
Version  Date  Change  Details 

1.00  September 4, 2015  Added to the B.C. Open Textbook Collection.  
1.01  September 27, 2018  The following changes were part of a project to standardize BCcampuspublished books. 

1.02  June 4, 2019  Updated the book's theme.  The styles of this book have been updated, which may affect the page numbers of the PDF and print copy. 
2.00  June 24, 2019  Accessibility remediation. 

Learning Objectives
Type of Measurement  Unit  Symbol 

length (distance)  metre  m 
mass (weight)  gram  g 
capacity (volume)  litre  L 
temperature  degrees Celsius  °C 
Prefix  Symbol  Meaning 

kilo  k  1000 
hecto  h  100 
deca  da  10 
deci  d  1/10 or 0.1 
centi  c  1/100 or 0.01 
milli  m  1/1000 or 0.001 
Unit  Abbreviation  Length (Distance) 

kilometre  km  1000 metres 
hectometre  hm  100 metres 
decametre  dam  10 metres 
metre  m  1 metre 
decimetre  dm  0.1 metres 
centimetre  cm  0.01 metres 
millimetre  mm  0.001 metres 
Unit  Abbreviation  Mass (Weight) 

tonne  t  1000 kilograms 
kilogram  kg  1000 gram 
hectogram  hg  100 grams 
decagram  dag  10 grams 
gram  g  1 g 
decigram  dg  0.1 g 
centigram  cg  0.01 g 
milligram  mg  0.001 g 
Unit  Abbreviation  Volume 

kilolitre  kL  1000 L 
hectolitre  hL  100 L 
decalitre  daL  10 L 
litre  L  1L 
decilitre  dL  0.1 L 
centilitre  cL  0.01 L 
millilitre  mL  0.001 L 
Learning Objectives
Almost all inventory control procedures are time consuming. Moreover, such records must be kept uptodate and done accurately. Trying to save a few hours by cutting back on the time needed to keep inventory records may be money poorly saved.
The simplest method for tracking inventory is using a spreadsheet. A simple spreadsheet might list all of the products that are regularly purchased, with the current prices and the numbers on hand at the last inventory count. The prices can be updated regularly as invoices are processed for payment, and a schedule can be set to count the product on hand.
In large operations, the systems need to be more sophisticated as there are more people involved. Purchases might be made by a separate department, inventory records might be kept by a storeroom clerk, and the tracking and counting of inventory might be tied to a system using scanners and barcodes, which in turn may be linked with your sales system so that there is always a record of what should be in stock.
No matter the depth of detail used, having a system to track inventory gives managers a good idea of supplies on hand and a tool to use to manage costs.
When a supply leaves the storeroom or cooler, a record must be kept to track where it has gone. In most small operations, the supplies go directly to the kitchen where they are used to produce the menu items. In an ideal world, accurate records of incoming and outgoing supplies are kept, so knowing what is on hand is a simple matter of subtraction. Unfortunately, systems aren’t always that simple.
In a smaller operation, knowing what has arrived and what gets used every day can easily be reconciled by doing a regular count of inventory. In larger operations and hotels, the storage rooms and coolers may be on a different floor than the kitchen, and therefore a system is needed that requires each department and the kitchens to requisition food from the storeroom or purchasing department, much like a small restaurant would do directly from the supplier. In this model, the hotel would purchase all of the food and keep it in a central storage area, and individual departments would then “order” their food from the storerooms.
Figure 1: Sample Requisition Form
Quantity  Description  Unit Cost  Total Cost 

6 #10 cans  Kernel corn  
25 kg  Sugar  
20 kg  Ground beef  
6 each  Pork loins 
Figure 3: Physical Inventory Form
Product  Unit  Count  Unit Price  Total Value 

Lima beans  6 #10  4 1/3  $23.00  $99.60 
Green beans  6 #10  3 5/6  28.95  110.98 
Flour  25 kg bag  3  14.85  44.55 
Rice  50 kg bag  1  32.50  32.50 
Total  $593.68 
Example 10
Date  Number and value of cans 

Opening inventory, 1st of month  15 cans @ $2.15 = $32.25 
Received on 8th of month  24 cans @ $2.25 = $54.00 
Received in 15th of month  24 cans @ $2.15  $51.60 
Received on 23 of month  12 cans @ $2.60  $31.20 
When you are building your inventory forms, be sure to calculate the costs of any processed items. For instance, sauces and stocks that you make from raw ingredients need to be costed accurately and recorded on the spreadsheet along with purchased products so that when you are counting your inventory you are able to reflect the value of all supplies on the premises that have not been sold.
(We will discuss more about calculating the costs of products and menu items later in this book.)
Example 11
Date  In  Out  Balance 

June 16  None  3  12 
June 17  None  3  9 
June 18  6  None  15 
June 19  None  2  13 
Perishable items include fruits, vegetables, fresh fish and shellfish, fresh meats, poultry, and dairy products. As a rule, perishables are bought frequently to ensure freshness. Frozen foods, such as vegetables, fish and meat products, have a longer lifespan and can be ordered less frequently and stored in a freezer.
Nonperishable items include dry goods, flour, cereals, and miscellaneous items such as olives, pickles, and other condiments. These can be ordered on a weekly or monthly basis.
Keep in mind that just because something does not go bad isn’t a reason to buy it in quantities larger than you need. Every item in your inventory is equal to a dollar amount that you could be saving or spending on something else. Consider that a case of 1000 sheets of parchment paper may cost $250. If you have a case and a half sitting in your inventory, but only use a few sheets a day, that is a lot of money sitting in your storeroom.
Figure 4: Purchasing Specifications
Beef  Grade  Weight, Size, and Cut Specifications 

Prime rib  Grade AA  7 kg, fully trimmed 
New York strip  Grade AAA  6 kg, bone out, fully trimmed, max. 15 cm width, min. 5 cm depth 
Tenderloin  Grade AAA  3 kg, fully trimmed to silverside 
Roast sirloin  Grade A  7 kg, boneless butt 
Short loins  Grade AAA  6 kg, fully trimmed, 5 cm from eye 
Pork  Grade  Weight, Size, and Cut Specifications 

Pork leg  Fresh—Canada #1  6 kg, oven ready, lean 
Pork loin  Fresh—Canada #1  56 kg, trimmed, lean 
Ham  68 kg, fully cooked, lean, bone in 
Poultry  Grade  Weight, Size, and Cut Specifications 

Chicken—Frying  Fancy, Eviscerated  1.5 kg, always fresh 
Turkey  Fancy, Eviscerated  913 kg 
Lamb  Grade  Weight, Size, and Cut Specifications 

Legs  Fresh—Canada #1  35 kg, bone in 
Lamb loin  23 kg, trimmed with all fat removed 
Seafood  Grade  Weight, Size, and Cut Specifications 

Shrimp  Jumbo  2430/kg, fresh 
Oysters  Canada #1  35/L 
Figure 5: Portion control chart
Food Item  Menu Item  Portion Size 

Shrimp  Shrimp cocktail  80 g (2.82 oz.) 
Lemon  Shrimp cocktail  1 wedge (6/lemon) 
Cocktail sauce  Shrimp cocktail  60 mL (2.11 oz.) 
Head lettuce  Tossed salad  1/4 head 
Tomato  Tossed salad  1/2 each 
Dressing  Tossed salad  60 mL (2.11 oz.) 
Prime rib, raw, trimmed ready  Prime rib  500 g (17.6 oz.) 
Potato  Baked potato  1 each (100 count) 
Green beans  Green beans  80 g (2.82 oz.) 
Carrots  Carrots  80 g (2.82 oz.) 
Strawberries  Fresh strawberries  100 g (3.52 oz.) 
Whipping cream  Berries and cream  60 mL (2.11 oz.) 
Coffee  Coffee  500 g (17.6 oz.) for 75 people 
Coffee cream  Coffee  60 mL (2.11 oz.) 
Figure 6L Calculating purchase amounts
Required Servings  Amount to Order 

100 x 80 g shrimp  8000 g or 8 kg (17.6 lbs.) shrimp 
100 x 1 wedge of lemon  100 wedges = 17 lemons (6 wedges per lemon) 
100 x 1/4 head of lettuce  25 heads lettuce 
100 x 500 g prime rib raw oven ready  50 kg (110 lbs.) prime rib 
Figure 7: Purchase order chart
Meats  Amount Required (Par Level)  Amount on Hand  Amount to Order  Actual Order 


10 kg  2 kg  8 kg  8 kg 

20 kg  5 kg  15 kg  15 kg 

10 kg    10 kg  10 kg 

5 kg  500 g  4.5 kg  4.5 kg 

10 kg  3 kg  7 kg  7 kg 
Fish  Amount Required (Par Level)  Amount on Hand  Amount to Order  Actual Order 


25 kg  5 kg  20 kg  20 kg 
Vegetables  Amount Required (Par Level)  Amount on Hand  Amount to Order  Actual Order 


2 kg tub  250 g  1.750 kg  2 kg tub 

5 kg case  500 g  4.5 kg  5 kg case 

2 cases (24/case)  12 (1/2 case)  1 1/2 cases  2 cases 
Fruits  Amount Required (Par Level)  Amount on Hand  Amount to Order  Actual Order 


2 cases  1/2 case  1 1/2 cases  2 cases 

10 kg    10 kg  

1 case  2 cases     
Learning Objectives
Figure 8: Portion control record
Item  Purchased Size  Yield %  Cooked Yield  Portion Size  No. of Portions 

Baked ham  67 kg  50%  3.03.5 kg  
Lunch  50 g  6070  
Dinner  85 g  3541  
Prime rib  912 kg  40%  3.64.8 kg  150 g  2432 
Fillet of sole  500 g  100%  500.0 g  
Lunch  50 g  10  
Dinner  85 g  6  
Potatoes:  50 kg  

75%  Peeled  37.5 kg  100 g  375  

56%  Peeled  28.0 kg  100 g  280  
Daily veg  5 kg  
Green beans  80%  Trimmed  4 kg  50 g  80  
Carrots  80%  Peeled  4 kg  50 g  80 
Figure 9: Menu item  Seafood Newburg
Ingredients  Quantity  Units  Cost/Unit  Extension 

Lobster meat  500 g  kg  $38.00  $19.00 
Scallops  250 g  kg  $25.00  $6.25 
Shrimps  250 g  kg  $14.00  $3.50 
Sole  250 g  kg  $8.50  $2.13 
Cream, heavy  250 mL  L  $4.00  $1.00 
Fish Velouté  750 mL  L  $1.00  
Butter  250 g  500 g  $2.85  $1.43 
Pepper and salt  
Paprika  5 g  $0.15  
Sherry  250 mL  750 mL  $12.00  $4.00 
Egg yolks  6  12  $2.00  $1.00 
Patty shells  10  each  $0.12  $1.20 
Total  $40.66 
Example 11
Figure 10
Mashed potatoes, one serving  $0.50 
Mixed vegetables, one serving  $0.75 
Demiglace, one serving  $0.30 
Herb garnish  $0.20 
Total basic plate cost  $1.75 
Figure 11
Day  Feature  Feature Cost per Portion  Basic Plate Cost  Total Cost 

Monday  Roast beef  $5.00  + $1.75  = $6.75 
Tuesday  Pork chop  $3.75  + $1.75  = $5.50 
Wednesday  Half roast chicken  $4.00  + $1.75  = $5.75 
Example 12: The procedure for testing yields
Figure 12: Meat Cutting Yield Test
Part of the meat  Weight  % of total  Value per kg  Total value  Cost factor  EP cost (per kg)  Portion size  Portion cost 

Whole piece (AP)  2.5 kg  $12.14  $30.35  
Fat and gristle  850 g  34%  $0.20  $0.17  
Loss in cutting  100 g  4%  0  
Trim  250 g  10%  $7.49  $1.87  
Usable meat  1300 g  52%  $28.31  1.79  $21.78  250 g  $5.45 
Example 15: The total value of usable meat equation
Example 16: Cost of usable kg (or EP cost) equation
Example 17: The portion cost is determined by multiplying the cost of a usable kg by the portion size.
Example 18: Portion size equation
Example 19: Cost factor equation
Example 20: Finding the cost of usable kg if wholesale cost changes
Example 21: Cost factor per portion equation
Figure 13: Cooking Loss Test Form
Breakdown  Weight  % of Total Weight  Value (per kg)  Total Value  EP Cost (per kg)  Portion Size  Portion Cost  Cost Factor (per kg)  Cost factor per portion 

Original weight  3750 g  100%  $6.50  $24.38  
Trimmed weight  2850 g  76.00%  $24.38  
Loss in Trimming  900 g  24%  0  
Cooked Weight  2350 g  62.67%  $24.38  
Loss in Cooking  500 g  13.33%  0  
Bones and Trim  750 g  20%  0  
Saleable Weight  1600 g  43.00%  $24.38  $15.24  125 g  $1.91  2.3446  0.2931 
Example 22: Equation
Example 23: Equation
Example 24: Equation
Example 25: Calculating food cost
Example 26: Net cost of food for an operation
Example 27: Food cost percentages
Figure 14: Comparative monthly sales
Date  Food Costs  Food Sales  Food Cost Percentage 

Last month  $8000  $32 000  25.0% 
Previous month  $8500  $30 000  28.3% 
Same month last year  $9500  $31 000  30.6% 
Figure 15: Percentage costing report
Amount  %  Remarks  

Total sales  
Food costs  
Labour cost  
Rent/Lease  
Other operating expenses  
Total cost  
Profit 
Figure 16: Food cost analysis report
Item  Cost (October)  % of Total Cost (October)  Cost (November)  % of Total Cost (November) 

Meat  $ 874.70  27.1%  $ 811.12  28.2% 
Fish  $ 264.67  8.2%  $ 184.08  6.4% 
Poultry  $ 390.55  12.1%  $ 330.77  11.5% 
Dairy  $ 532.56  16.5%  $ 440.07  15.3% 
Eggs  $ 203.34  6.3%  $ 212.85  7.4% 
Bakery  $ 129.11  4.0%  $ 143.82  5.0% 
Produce  $ 254.99  7.0%  $ 238.73  8.3% 
Dry goods  $ 490.60  15.2%  $ 414.19  14.4% 
Beverages  $ 87.15  2.7%  $ 100.67  3.5% 
Total cost  $3227.67  100%  $2876.30  100% 
Total sales  $9143.50  $8560.35  
Food cost %  35.3%  33.6% 
Example 28: Basic daily food costs
Figure 17: Daily cumulative food cost record
Date  Stores  Directs  Cost Today  Cost to Date  Sales Today  Sales to Date  Cost % Today  Cost % to Date 

Example 29
Figure 18: Daily cumulative food cost record
A  B  C  D  E  F  G  H  I 
Date  Stores  Directs  Cost Today  Cost to Date  Sales Today  Sales to Date  Cost % Today  Cost % to Date 

10/1  $102.00  $35.00  $137.00  $137.00  $360.00  38%  38%  
10/2  $95.00  $12.50  $107.50  $244.50  $345.00  $705.00  31%  35% 
10/3  $99.50  $30.00  $129.50  $374.00  $310.50  $1015.50  42%  37% 
Figure 19: Daily report
Today  Month to Date  Year to Date  Last Year to Date  

Food cost  $129.50  $2025  $32 600  $31 750 
Food sales  $310.50  $4330  $92 500  $85 750 
Food cost %  42%  38%  35%  37% 
Figure 20: Daily food cost control sheet
Meat  Fish  Poultry  Dairy  Eggs  Bakery  Produce  Dry Goods  Beverages  Daily Food Cost  Daily Sales  Daily Food Cost %  To Date Food Cost %  

Desired %  10%  3.20%  4.50%  6.00%  2.50%  2.10%  3.20%  6.50%  2.00%  40%  
Oct 1  $67.15  $22.38  $28.54  $27.95  $11.19  $12.87  $14.50  $28.50  11.75  $224.83  $468.40  48%  
Oct 2  $61.12  $26.74  $30.56  $45.84  $16.04  $17.57  $26.74  $57.3  $13.75  $295.66  $721.12  41%  
Oct 3  42.03  15.75  21.54  36.78  13.1  18.76  18.39  37.3  6.5  210.15  550.13  38%  
Oct 4  85.39  25.17  32.6  5.03  23.25  23.45  27.95  32.15  15.53  310.52  889.49  35%  
Oct 5  
Total to date  $255.69  $90.04  $113.24  $115.60  $63.58  $72.65  $87.58  $155.25  $47.53  $1041.16  $2629.14  40%  
Per cent to date  9.73%  3.42%  4.31%  4.40%  2.42%  2.76%  3.33%  5.90%  1.81%  
Variance  −0.27%  0.22%  −0.19%  −1.60%  −0.08%  0.66%  0.13%  −0.60%  −0.19%  0% 
Key Takeaway
Example 30: Food cost percentages
Example 31: Cost markup
Example 32: Determine a selling price
Example 33
Example 34: Contribution margin
Figure 22: Contribution margin
Item  Food Cost  Selling Price  Food Cost %  Contribution Margin 

Chicken  $4.50  $16.50  27%  $12.00 
Steak  $9.00  $24.00  38%  $15.00 
Figure 23: Menu analysis worksheet
A  B  C  D  E  F  G  H  I  J 
Menu Item  Total Sold  Menu Price  Portion Cost  Food Cost %  Portion C.M.[footnote]C.M. = Contribution margin[/footnote]  Total Food Sales  Total Food Cost  Total C.M.  C.M.% 

Hamburger  12  $10.95  $2.75  25%  $8.20  $131.40  $33.00  $98.40  24% 
Cheeseburger  8  $11.95  $4.25  36%  $7.70  $95.60  $34.00  $61.60  15% 
BLT sandwich  10  $11.95  $3.75  31%  $8.20  $119.50  37.50  $82.00  20% 
Ham sandwich  5  $10.95  $3.50  32%  $7.45  $54.75  17.50  $37.25  9% 
Fried chicken  4  $14.95  $5.25  35%  $9.70  $59.80  $21.00  $38.80  9% 
Clubhouse  6  $12.95  $4.00  31%  $8.95  $77.70  $24.00  $53.70  13% 
Steak sandwich  5  $15.95  $7.25  45%  $8.70  $79.75  36.25  $43.50  10% 
Totals  50  $618.50  $203.25  $415.25 
Example 35: Average contribution margin
Figure 24: Menu analysis worksheet
Menu Item  Total Sold  Menu Price  Portion Cost  Food Cost %  Portion C.M.  Total Food Sales  Total Food Cost  Total C.M.  C.M.% 

Thai Wings  31  $6.75  $1.93  28.59%  $4.82  $59.83  $209.25  $149.42  4.63% 
Dry Ribs  211  $6.75  $1.72  25.48%  $5.03  $362.92  $1,424.25  $1,061.33  31.54% 
Nachos  71  $6.95  $1.53  22.01%  $5.43  $108.63  $493.45  $384.82  10.61% 
Calamari  19  $7.50  $2.23  29.73%  $5.27  $42.37  $142.50  $100.13  2.84% 
Soup and Salad  78  $5.95  $1.55  26.05%  $4.40  $120.90  $464.10  $343.20  11.66% 
Thai Salad  129  $6.45  $1.68  26.05%  $4.77  $216.72  $832.05  $615.33  19.28% 
Cajun Caesar  130  $6.95  $1.76  25.32%  $5.19  $228.80  $903.50  $674.70  19.43% 
Total Appetizer  669  ACM =  $4.98  $1,140.70  $4,469.10  $3,328.93  100.00% 
Figure 26: Fourbox analysis of appetizer items
Unprofitable  Profitable  

Popular  Thai Salad, Soup and Salad  Dry Ribs, Cajun Caesar, Nachos 
Unpopular  Thai Wings  Calamari 
Learning Objectives
Figure 28: Staffing Guide
Type of Restaurant  Servers  Bus Persons  Chef or Sous Chef  Cooks  Dishwashers  Hosts 

Coffee shop  1 per 25 seats  1 per 5 servers  1 per shift  2 per 65 meals  1 per 100 meals  1 per 10 servers 
Casual dining room  1 per 20 seats  1 per 4 servers  1 per shift  2 per 50 meals  1 per 65 meals  1 per 8 servers 
Formal dining room  1 per 15 seats  1 per 2 servers  1 per shift  2 per 40 meals  1 per 65 meals  1 per 4 servers 
Example 36
Position  Labour Hours for 50 Meals  Labour Hours for 75 Meals  Labour Hours for 100 Meals  Hourly Rate (inc. benefits) 

Food server  8.5  12.5  16  $9.85 
Bus person  6.5  6.5  9  $10.95 
Cook  7  10  14  $16.50 
Steward  6.5  6.5  9  $12.00 
Host  0  0  4  $10.25 
Figure 30: Position performance analysis
Shift  
Date  April 5  April 6  April 7  April 8 
Number of meals served  
Number of hours worked  
Number of meals per labour hour  
Supervisor comments  
General comments 
Learning Objectives
Example 37
Example 38
Example 39
Example 40
Example 41
Example 42
Example 43: Sales/Cost/Profit Equation
Example 44
Example 45: Projected Food Cost
Example 46: Projected labour cost
Example 47: Projected sales
Example 48: Food costs
Example 49
Figure 31: Sales comparison year over year
Month  Sales This Year  Sales Last Year  Difference  Percentage Change 

January  $20 925  $19 020  $1 905  10% 
February  $21 390  $19 810  $1 580  8% 
March  $22 090  $19 725  $2 365  12% 
April  $23 020  $21 320  $1 700  8% 
May  $23 030  $21 730  $1 300  6% 
June  $23 950  $21 780  $2 170  10% 
July  $23 715  $21 365  $2 350  11% 
August  $23 720  $21 200  $2 520  12% 
September  $23 320  $20 710  $1 610  8% 
October  $25 110  $22 900  $2 210  10% 
November  $24 830  $22 200  $2 630  12% 
December  $24 900  $21 240  $3 660  17% 
Totals  $279 000  $253 000  $26 000  10% 
Figure 32: Sales projections based on previous year's growth
Month  Sales This Year  Increase by 10%  Projected Sales 

January  $20 925  $2 090  $23 015 
February  $21 390  $2 140  $23 530 
March  $22 090  $2 210  $24 300 
April  $23 020  $2 300  $25 320 
May  $23 030  $2 300  $25 350 
June  $23 950  $2 400  $26 350 
July  $23 715  $2 370  $26 085 
August  $23 720  $2 370  $26 090 
September  $22 320  $2 230  $24 550 
October  $25 110  $2 510  $27 620 
November  $24 830  $2 490  $27 320 
December  $24 900  $2 500  $27 400 
Totals  $279 000  $27 910  $306 910 
Figure 33: Annual cost figures
Food cost  $110 000 
Payrolls costs  $75 000 
Other controllable costs  $35 000 
Occupancy costs  $25 000 
Depreciation  $12 000 
Profit (before taxes)  $22 000 
Total  $279 000 
Figure 34: Annual cost percentages
Item  Cost  Cost Percentage 

Food cost  $110 000  39% 
Payroll costs  $75 000  27% 
Other controllable costs  $35 000  13% 
Occupancy costs  $25 000  9% 
Depreciation  $12 000  4% 
Profit (before taxes)  $22 000  8% 
Total  $279 000  100% 
Figure 35: January sample budget
A  B  C  D  E  F  G  H 
Item  Budget %  Month (Budget)  Year (Actual)  Month (Actual)  Year  Variance  Actual % 

Food sales  $23,015.00  $306,910.00  $23,100.00  $23,100.00  $85.00  
Food cost  39.0%  $8,976.00  $119,695.00  $9,110.00  $9,110.00  $(134.00)  39.4% 
Payroll costs  27%  $6,214.00  $82,866.00  $6,205.00  $6,205.00  $9.00  26.9% 
Other controllable costs  13.05  $2,992.00  $39,898.00  $3,110.00  $3,110.00  $(118.00)  13.5% 
Occupancy costs  9.0%  $2,071.00  $27,622.00  $1,955.00  $1,955.00  $116.00  8.5% 
Depreciation  4.0%  $921.00  $12,276.00  $921.00  $921.00    4.0% 
Profits  8.0%  $1,841.00  $24,553.00  $1,799.00  $1,799.00  $(42.00)  7.8% 
Total expenses  $23,015.00  $306,910.00 
Figure 37: Detailed profit and loss statement
End of December, 20 Sales Customers $ 258 310 (92.6%) Staff meals $ 12 500 (4.5%) Returns and promotions $ 8190 (2.9%) Total sales $ 279 000 Cost of sales Beginning inventory $ 16 500 Purchases $ 105 900 Ending inventory $ 12 400 Cost of food sold $ 110 000 (39.4%) Gross profit $ 169 000 (60.6%) Expenses Payroll Salaries and wages $ 63 750 (22.8%) E. I. and WorkSafe $ 6000 (2.2%) Casual labour $ 5250 (1.9%) Other controllable costs Advertising $ 9 800 (3.5 %) Laundry and linen $ 7700 (2.8% ) Cleaning and paper supplies $ 10 500 (3.8%) Freight and cartage $ 5250 (1.9%) Office supplies $ 1750 (0.6%) Occupancy costs Insurance $ 3000 (1.1%) Utilities and fuel $ 2750 (1.0%) Repairs and maintenance $ 500 (0.2%) Lease $ 18 750 (6.7%) Depreciation $ 12 000 (4.3%) Total operating expenses $ 147 000 (52.7%) Total net profit $ 22 000 (7.9%) Note: The figures in brackets are cost percentage. 
Example
Menu Item  Monday  Tuesday  Wednesday  Thursday  Friday  Saturday  Sunday  Total  % Mix 

Italian pizza  7  9  10  10  25  22  17  100  11.90% 
Cajun chicken  8  9  9  12  10  13  12  73  8.69% 
Sirloin steak  5  8  6  8  27  25  18  97  11.55% 
Chicken stir fry  10  7  9  6  10  15  11  68  8.10% 
Prawn stir fry  5  5  6  11  8  8  6  49  5.83% 
Linguine  9  9  9  16  8  11  12  74  8.81% 
Linguine chicken  12  19  13  8  15  10  17  93  11.07% 
Fettuccine alfredo  11  13  12  18  16  19  22  111  13.21% 
Salmon  4  16  13  5  18  11  17  84  10.00% 
BBQ chicken  15  11  10  11  9  19  16  91  10.83% 
Total  81  106  97  106  146  153  147  840  100% 
Meal Period  Mon  Tues  Wed  Thu  Fri  Sat  Sun 

5:006:00  56  72  48  54  53  119  123 
6:007:00  94  156  117  119  94  121  131 
7:008:00  145  183  156  173  156  163  165 
8 :009:00  89  87  101  115  203  207  177 
9:0010:00  73  66  54  78  177  177  96 
10:0011:00  45  42  47  37  72  74  45 
Total  502  606  523  576  755  861  737 
Examples of how to convert between measurements
Unit of Measurement  Imperial System  Metric Equivalent  U.S. System  Metric Equivalent 

1 ounce  1 (fluid) oz.  28.41 mL  1 (fluid) oz.  29.57 mL 
1 gill  5 (fluid) oz.  142.07 mL  Not commonly used  
1 cup  Not commonly used  8 (fluid) oz.  236.59 mL  
1 pint  20 (fluid) oz.  568.26 mL  16 (fluid) oz.  473.18 mL 
1 quart  40 (fluid) oz.  1.137 L  32 (fluid) oz.  946.36 mL 
1 gallon  160 (fluid) oz.  4.546 L  128 (fluid) oz.  3.785 L 
Types of Measurement  Conversion 

Weight  1 pound = 16 ounces 
Volume (U.S.)  1 gallon = 4 quarts or 128 (fluid) ounces 
Volume (U.S.)  1 quart = 2 pints or 4 cups or 32 (fluid) ounces 
Volume (U.S.)  1 pint = 2 cups or 16 (fluid) ounces 
Volume (U.S.)  1 cup= 8 (fluid) ounces or 16 tablespoons 
Volume (U.S.)  1 (fluid) ounce = 2 tablespoons 
Volume (U.S.)  1 tablespoon = 3 teaspoons 
Volume (imperial)  1 gallon = 4 quarts or 160 (fluid) ounces 
Volume (imperial)  1 quart = 2 pints or 40 (fluid) ounces 
Volume (imperial)  1 pint = 20 (fluid) ounces 
Volume (imperial)  1 gill = 5 (fluid) ounces or 10 tablespoons 
Volume (imperial)  1 (fluid) ounce = 2 tablespoons 
Volume (imperial)  1 tablespoon = 3 teaspoons 
Length  1 mile = 1760 yards 
Length  1 yard = 3 feet 
Length  1 foot = 12 inches 
Converting from Metric: When You know  Converting to Metric: Divide by  To get  When you know  Multiply by  To get 

millilitres  4.93  teaspoons  teaspoons  4.93  millilitres 
millilitres  14.79  tablespoons  tablespoons  14.79  millilitres 
millilitres  28.41  fluid ounces (imperial)  fluid ounces (imperial)  28.41  millilitres 
millilitres  29.57  fluid ounces (U.S.)  fluid ounces (U.S.)  29.57  millilitres 
millilitres  236.59  cups  cups  236.59  millilitres 
litres  0.236  cups  cups  0.236  litres 
millilitres  473.18  pints (U.S.)  pints (U.S.)  473.18  millilitres 
litres  0.473  pints (U.S.)  pints (U.S.)  0.473  litres 
millilitres  568.26  pints (imperial)  pints (imperial)  568.26  millilitres 
litres  0.568  pints (imperial)  pints (imperial)  0.568  litres 
millilitres  946.36  quarts (U.S.)  quarts (U.S.)  946.36  millilitres 
litres  0.946  quarts (U.S.)  quarts (U.S.)  0.946  litres 
millilitres  1137  quarts (imperial)  quarts (imperial)  1137  millilitres 
litres  1.137  quarts (imperial)  quarts (imperial)  1.137  litres 
litres  3.785  gallons (U.S.)  gallons (U.S.)  3.785  litres 
litres  4.546  gallons (imperial)  gallons (imperial)  4.546  litres 
grams  28.35  ounces  ounces  28.35  grams 
grams  454  pounds  pounds  454  grams 
kilograms  0.454  pounds  pounds  0.454  kilograms 
centimetres  2.54  inches  inches  2.54  centimetres 
millimetres  25.4  inches  inches  25.4  millimetres 
Celsius (Centigrade)  multiply by 1.8 and add 32  Fahrenheit  Fahrenheit  subtract 32 and divide by 1.8  Celsius (Centigrade) 
Length  Unit  Equivalent 

Length  1 inch  25.4 millimetres 
Length  1 centimetre  0.39 inches 
Length  1 metre  39.4 inches 
Volume  Unit  Equivalent 
Volume  1 fluid ounce (U.S.)  29.57 millilitres 
Volume  1 cup  237 millilitres 
Volume  1 quart  946 millilitres 
Volume  1 millilitre  0.034 fluid ounces 
Volume  1 litre  33.8 fluid ounces 
Weight  Unit  Equivalent 
Weight  1 ounce  28.35 grams 
Weight  1 pound  454 grams 
Weight  1 gram  0.035 ounce 
Weight  1 kilogram  2.205 pounds 
Length  To Convert  Multiply by  Result 

Length  Inches to millimeters  25.4  1 inch = 25.4 mm 
Length  Inches to centimetres  2.54  1 inch = 2.54 cm 
Length  Millimetres to inches  0.03937  1 mm = 0.03937 in. 
Length  Centimetres to inches  0.3937  1 cm = 0.3937 in. 
Length  Metres to inches  39.3701  1m = 39.37 in. 
Volume  To Convert  Multiply by  Result 
Volume  Quarts to litres  0.946  1 qt. = 0.946 L 
Volume  Litres to fluid ounces (U.S.)  33.8  1 L = 33.8 oz. 
Volume  Quarts to millilitres  946  1 qt. = 946 mL 
Volume  Millilitres to ounces  0.0338  1 mL = 0.0338 oz. 
Volume  Litres to quarts  1.05625  1 L = 1.05625 qt. 
Weight  To Convert  Multiply by  Result 
Weight  Ounces to grams  28.35  1 oz. = 28.35 g 
Weight  Grams to ounces  0.03527  1 g = 0.03527 oz. 
Weight  Kilograms to pounds  2.2046  1 kg = 2.2046 lb. 
Metric  U.S. Measurements 

1 millilitre  1/4 teaspoon 
2 millilitres  1/2 teaspoon 
5 millilitres  1 teaspoon 
15 millilitres  1 tablespoon 
30 millilitres  1 fluid ounce 
250 millilitres  1 cup 
500 millilitres  1 pint 
1 litre  1 quart 
4 litres  1 gallon 
Examples
Examples
Examples
Key Takeaways
Examples
Ingredient  Amount 

Flour  3¼ lbs. 
Baking Powder  4 oz. 
Salt  1 oz. 
Shortening  1 lb. 
Milk  6 cups 
Ingredient  Original Amount (U.S.)  Conversion Factor  New Ingredient Amount 

Flour  3¼ lbs.  4  13 lbs. 
Baking powder  4 oz.  4  16 oz. (= 1 lb.) 
Salt  1 oz.  4  4 oz. 
Shortening  1 lb.  4  4 lbs. 
Milk  6 cups  4  24 cups (= 6 qt. or 1½ gal.) 
Examples
Ingredient  Amount 

Flour  1.75 kg 
Baking powder  50 g 
Salt  25 g 
Shortening  450 g 
Milk  1.25 L 
Ingredient  Original Amount (metric)  Conversion Factor  New Ingredient Amount 

Flour  1.75 kg  2  3.5 kg 
Baking powder  50 g  2  100 g 
Salt  25 g  2  50 g 
Shortening  450 g  2  900 g 
Milk  1.25 L  2  2.5 L 
90 g  Butter 
135 mL  Milk 
135 mL  Water 
5 mL  Salt 
150 g  Sifted flour 
3  Large eggs 
75 g  Grated cheese 
To taste  Cracked pepper 
180 g  Butter 
270 mL  Milk 
270 mL  Water 
10 mL  Salt 
300 g  Sifted flour 
6  Large eggs 
150 g  Grated cheese 
To taste  Cracked pepper 
270 g  Butter 
405 mL  Milk 
405 mL  Water 
15 mL  Salt 
450 g  Sifted flour 
9  Large eggs 
225 g  Grated cheese 
To taste  Cracked pepper 
Butter  360 g 
Milk  540 mL 
Water  540 mL 
Salt  20 mL 
Sifted flour  600 g 
Large eggs  12 
Grated cheese  300 g 
Cracked pepper  To taste 
Ingredient  %  Total  Unit 

Flour  100.0%  15  kg 
Water  62.0%  9.3  kg 
Salt  2.0%  0.3  kg 
Sugar  3.0%  0.45  kg 
Shortening  1.5%  0.225  kg 
Yeast  2.5%  0.375  kg 
Total weight:  171.0%  25.65  kg 
Ingredient  %  Total  Unit 

Flour  100.0%  20  kg 
Water  62.0%  12.4  kg 
Salt  2.0%  0.4  kg 
Sugar  3.0%  0.6  kg 
Shortening  1.5%  0.3  kg 
Yeast  2.5%  0.5  kg 
Total weight:  171.0%  34.20  kg 
Ingredient  %  Total  Unit 

Flour  100.0%  10  kg 
Water  62.0%  6.2  kg 
Salt  2.0%  0.2  kg 
Sugar  3.0%  0.3  kg 
Shortening  1.5%  0.15  kg 
Yeast  2.5%  0.25  kg 
Using baker’s percentage to find ingredient weights when given the total dough weight
Ingredient  %  Total  Unit 

Flour  100.0%  14.62  kg 
Water  62.0%  9.064  kg 
Salt  2.0%  0.292  kg 
Sugar  3.0%  0.439  kg 
Shortening  1.5%  0.219  kg 
Yeast  2.5%  0.366  kg 
Total weight:  171.0%  25.00  kg 
Learning Objectives
Almost all inventory control procedures are time consuming. Moreover, such records must be kept uptodate and done accurately. Trying to save a few hours by cutting back on the time needed to keep inventory records may be money poorly saved.
The simplest method for tracking inventory is using a spreadsheet. A simple spreadsheet might list all of the products that are regularly purchased, with the current prices and the numbers on hand at the last inventory count. The prices can be updated regularly as invoices are processed for payment, and a schedule can be set to count the product on hand.
In large operations, the systems need to be more sophisticated as there are more people involved. Purchases might be made by a separate department, inventory records might be kept by a storeroom clerk, and the tracking and counting of inventory might be tied to a system using scanners and barcodes, which in turn may be linked with your sales system so that there is always a record of what should be in stock.
No matter the depth of detail used, having a system to track inventory gives managers a good idea of supplies on hand and a tool to use to manage costs.
When a supply leaves the storeroom or cooler, a record must be kept to track where it has gone. In most small operations, the supplies go directly to the kitchen where they are used to produce the menu items. In an ideal world, accurate records of incoming and outgoing supplies are kept, so knowing what is on hand is a simple matter of subtraction. Unfortunately, systems aren’t always that simple.
In a smaller operation, knowing what has arrived and what gets used every day can easily be reconciled by doing a regular count of inventory. In larger operations and hotels, the storage rooms and coolers may be on a different floor than the kitchen, and therefore a system is needed that requires each department and the kitchens to requisition food from the storeroom or purchasing department, much like a small restaurant would do directly from the supplier. In this model, the hotel would purchase all of the food and keep it in a central storage area, and individual departments would then “order” their food from the storerooms.
Quantity  Description  Unit Cost  Total Cost 
6 #10 cans  Kernel corn  
25 kg  Sugar  
20 kg  Ground beef  
6 each  Pork loins 
Product  Unit  Count  Unit Price  Total Value 
Lima beans  6 #10  4 1/3  $23.00  $99.60 
Green beans  6 #10  3 5/6  28.95  110.98 
Flour  25 kg bag  3  14.85  44.55 
Rice  50 kg bag  1  32.50  32.50 
Total  $593.68 
Examples
When you are building your inventory forms, be sure to calculate the costs of any processed items. For instance, sauces and stocks that you make from raw ingredients need to be costed accurately and recorded on the spreadsheet along with purchased products so that when you are counting your inventory you are able to reflect the value of all supplies on the premises that have not been sold.
(We will discuss more about calculating the costs of products and menu items later in this book.)
Examples
Perishable items include fruits, vegetables, fresh fish and shellfish, fresh meats, poultry, and dairy products. As a rule, perishables are bought frequently to ensure freshness. Frozen foods, such as vegetables, fish and meat products, have a longer lifespan and can be ordered less frequently and stored in a freezer.
Nonperishable items include dry goods, flour, cereals, and miscellaneous items such as olives, pickles, and other condiments. These can be ordered on a weekly or monthly basis.
Keep in mind that just because something does not go bad isn’t a reason to buy it in quantities larger than you need. Every item in your inventory is equal to a dollar amount that you could be saving or spending on something else. Consider that a case of 1000 sheets of parchment paper may cost $250. If you have a case and a half sitting in your inventory, but only use a few sheets a day, that is a lot of money sitting in your storeroom.
Beef  Grade  Weight, Size, and Cut Specifications 

Prime rib  Grade AA  7 kg, fully trimmed 
New York strip  Grade AAA  6 kg, bone out, fully trimmed, max. 15 cm width, min. 5 cm depth 
Tenderloin  Grade AAA  3 kg, fully trimmed to silverside 
Roast sirloin  Grade A  7 kg, boneless butt 
Short loins  Grade AAA  6 kg, fully trimmed, 5 cm from eye 
Pork  Grade  Weight, Size, and Cut Specifications 
Pork leg  Fresh—Canada #1  6 kg, oven ready, lean 
Pork loin  Fresh—Canada #1  56 kg, trimmed, lean 
Ham  68 kg, fully cooked, lean, bone in  
Poultry  Grade  Weight, Size, and Cut Specifications 
Chicken—Frying  Fancy, Eviscerated  1.5 kg, always fresh 
Turkey  Fancy, Eviscerated  913 kg 
Lamb  Grade  Weight, Size, and Cut Specifications 
Legs  Fresh—Canada #1  
Lamb loin  35 kg, bone in  
23 kg, trimmed with all fat removed  
Seafood  Grade  Weight, Size, and Cut Specifications 
Shrimp  Jumbo  2430/kg, fresh 
Oysters  Canada #1  35/L 
Food Item  Menu Item  Portion Size 
Shrimp  Shrimp cocktail  80 g (2.82 oz.) 
Lemon  Shrimp cocktail  1 wedge (6/lemon) 
Cocktail sauce  Shrimp cocktail  60 mL (2.11 oz.) 
Head lettuce  Tossed salad  1/4 head 
Tomato  Tossed salad  1/2 each 
Dressing  Tossed salad  60 mL (2.11 oz.) 
Prime rib, raw, trimmed ready  Prime rib  500 g (17.6 oz.) 
Potato  Baked potato  1 each (100 count) 
Green beans  Green beans  80 g (2.82 oz.) 
Carrots  Carrots  80 g (2.82 oz.) 
Strawberries  Fresh strawberries  100 g (3.52 oz.) 
Whipping cream  Berries and cream  60 mL (2.11 oz.) 
Coffee  Coffee  500 g (17.6 oz.) for 75 people 
Coffee cream  Coffee  60 mL (2.11 oz.) 
Examples
Required Servings  Amount to Order 

100 x 80 g shrimp  8000 g or 8 kg (17.6 lbs.) shrimp 
100 x 1 wedge of lemon  100 wedges = 17 lemons (6 wedges per lemon) 
100 x 1/4 head of lettuce  25 heads lettuce 
100 x 500 g prime rib raw oven ready  50 kg (110 lbs.) prime rib 
Meats  Amount Required (Par Level)  Amount on Hand  Amount to Order  Actual Order 


10 kg  2 kg  8 kg  8 kg 

20 kg  5 kg  15 kg  15 kg 

10 kg    10 kg  10 kg 

5 kg  500 g  4.5 kg  4.5 kg 

10 kg  3 kg  7 kg  7 kg 
Fish  Amount Required (Par Level)  Amount on Hand  Amount to Order  Actual Order 

25 kg  5 kg  20 kg  20 kg 
Vegetables  Amount Required (Par Level)  Amount on Hand  Amount to Order  Actual Order 

2 kg tub  250 g  1.750 kg  2 kg tub 

5 kg case  500 g  4.5 kg  5 kg case 

2 cases (24/case)  12 (1/2 case)  1 1/2 cases  2 cases 
Fruits  Amount Required (Par Level)  Amount on Hand  Amount to Order  Actual Order 

2 cases  1/2 case  1 1/2 cases  2 cases 

10 kg    10 kg  

1 case  2 cases     
Learning Objectives
Item  Purchased Size  Yield %  Cooked Yield  Portion Size  No. of Portions 

Baked ham  67 kg  50%  3.03.5 kg  
Lunch  50 g  6070  
Dinner  85 g  3541  
Prime rib  912 kg  40%  3.64.8 kg  150 g  2432 
Fillet of sole  500 g  100%  500.0 g  
Lunch  50 g  10  
Dinner  85 g  6  
Potatoes:  50 kg  

75%  Peeled  37.5 kg  100 g  375  

56%  Peeled  28.0 kg  100 g  280  
Daily veg  5 kg  
Green beans  80%  Trimmed  4 kg  50 g  80  
Carrots  80%  Peeled  4 kg  50 g  80 
Ingredients  Quantity  Units  Cost/Unit  Extension 

Lobster meat  500 g  kg  $38.00  $19.00 
Scallops  250 g  kg  $25.00  $6.25 
Shrimps  250 g  kg  $14.00  $3.50 
Sole  250 g  kg  $8.50  $2.13 
Cream, heavy  250 mL  L  $4.00  $1.00 
Fish Velouté  750 mL  L  $1.00  
Butter  250 g  500 g  $2.85  $1.43 
Pepper and salt  
Paprika  5 g  $0.15  
Sherry  250 mL  750 mL  $12.00  $4.00 
Egg yolks  6  12  $2.00  $1.00 
Patty shells  10  each  $0.12  $1.20 
Total  $40.66 
Examples
Mashed potatoes, one serving  $0.50 

Mixed vegetables, one serving  $0.75 
Demiglace, one serving  $0.30 
Herb garnish  $0.20 
Total basic plate cost  $1.75 
Day  Feature  Feature Cost per Portion  Basic Plate Cost  Total Cost 

Monday  Roast beef  $5.00  + $1.75  = $6.75 
Tuesday  Pork chop  $3.75  + $1.75  = $5.50 
Wednesday  Half roast chicken  $4.00  + $1.75  = $5.75 
The procedure for testing for yeilds
A) Whole tenderloin – 2.5 kg
B) Whole sockeye salmon – 7.75 kg
C) Canned tuna flakes in brine – 750 mL
2. Process your product accordingly, measure and record the waste or trim weight.A) Tenderloin fat, sinew, chain, etc. – 750 g tenderloin trim
B) Salmon head, bones, skin, etc. – 2.75 kg salmon trim
C) Brine – 300 mL canned tuna waste
3. Subtract the amount of trim weight from the AP weight and you will have what is referred to as your processed or edible product (EP) weight. The formula is: AP weight – waste = EP weight.A) 2500 g – 750 g = 1750 g processed tenderloin
B) 7750 g – 2750 g = 5000 g processed salmon
C) 750 mL – 300 mL = 400 mL processed canned tuna
4. Get your yield percentage by converting the edible product weight into a percentage. The formula is EP weight ÷ AP weight x 100 = yield %.A) (1750 ÷ 2500) x 100 = 70% for the tenderloin
B) (5000 ÷ 7750) x 100 = 64.51% for the salmon
C) (400 ÷ 750) x 100 = 53.33% for the canned tuna
The procedure for determining EP cost
A) Whole tenderloin – $23.00/kg
B) Whole sockeye salmon – $5.00/kg
C) Canned tuna flakes in brine – $5.50/750 mL can
2. Obtain your factor. This factor converts all your calculations into percentages. The formula is: 100 ÷ yield % = factorA) 100 ÷ 70 tenderloin = 1.42
B) 100 ÷ 64.51 salmon = 1.55
C) 100 ÷ 53.33 canned tuna = 1.875
3) Once the factor has been determined, it is now an easy process to determine your EP cost. The formula is: factor x as purchased cost per (unit) = edible product cost per (unit)A) Tenderloin $23.00 x 1.42 = $32.66/kg
B) Salmon $5.00 x 1.55 = $7.75/kg
C) Canned tuna $5.50 x 1.875 = $10.78/750 mL
Percentage of fat and gristle equation
The total value of usable meat equation
Cost of usable kg (or EP cost) equation
The portion cost is determined by multiplying the cost of a usable kg by the portion size.
Portion size equation
Cost factor equation
Finding the cost of usable kg if wholesale cost changes
Cost factor per portion equation
Equation
Equation
Equation
Examples
Net cost of food for an operation
Food cost percentages
Date  Food Costs  Food Sales  Food Cost Percentage 

Last month  $8000  $32 000  25.0% 
Previous month  $8500  $30 000  28.3% 
Same month last year  $9500  $31 000  30.6% 
Year: ..... Month:  

Amount  %  Remarks  
Total sales  
Food cost  
Labour cost  
Rent/Lease  
Other operating expenses  
Total cost  
Profit 
October  November  December  
Item  Cost  % of Total Cost  Cost  % of Total Cost 

Meat  $ 874.70  27.1%  $ 811.12  28.2% 
Fish  $ 264.67  8.2%  $ 184.08  6.4% 
Poultry  $ 390.55  12.1%  $ 330.77  11.5% 
Dairy  $ 532.56  16.5%  $ 440.07  15.3% 
Eggs  $ 203.34  6.3%  $ 212.85  7.4% 
Bakery  $ 129.11  4.0%  $ 143.82  5.0% 
Produce  $ 254.99  7.0%  $ 238.73  8.3% 
Dry goods  $ 490.60  15.2%  $ 414.19  14.4% 
Beverages  $ 87.15  2.7%  $ 100.67  3.5% 
Total cost  $3227.67  100%  $2876.30  100% 
Total sales  $9143.50  $8560.35  
Food cost %  35.3%  33.6% 
Basic daily food costs
Date  Stores  Directs  Cost Today  Cost to Date  Sales Today  Sales to Date  Cost % Today  Cost % to Date 

Examples
Today  Month to Date  Year to Date  Last Year to Date  

Food cost  $129.50  $2025  $32 600  $31 750 
Food sales  $310.50  $5330  $92 500  $85 750 
Food cost %  42%  38%  35%  37% 
Key Takeaways
Food cost percentage
Cost markup
Determine a selling price
Examples
Contribution margin
Item  Food Cost  Selling Price  Food Cost %  Contribution Margin 
Chicken  $4.50  $16.50  27%  $12.00 
Steak  $9.00  $24.00  38%  $15.00 
Average contribution margin
Unprofitable  Profitable  
Popular  Thai Salad Soup and Salad  Dry Ribs Cajun Caesar Nachos 
Unpopular  Thai Wings  Calamari 
Learning Objectives
Type of Restaurant  Servers  Bus Persons  Chef or Sous Chef  Cooks  Dishwashers  Hosts 

Coffee shop  1 per 25 seats  1 per 5 servers  1 per shift  2 per 65 meals  1 per 100 meals  1 per 10 servers 
Casual dining room  1 per 20 seats  1 per 4 servers  1 per shift  2 per 50 meals  1 per 65 meals  1 per 8 servers 
Formal dining room  1 per 15 seats  1 per 2 servers  1 per shift  2 per 40 meals  1 per 65 meals  1 per 4 servers 
Examples
Position  Labour Hours for 50 Meals  Labour Hours for 75 Meals  Labour Hours for 100 Meals  Hourly Rate (inc. benefits) 

Food server  8.5  12.5  16  $9.85 
Bus person  6.5  6.5  9  $10.95 
Cook  7  10  14  $16.50 
Steward  6.5  6.5  9  $12.00 
Host  0  0  4  $10.25 
Position:
Name of employee:
Shift:  

Date  Apr 5  Apr 6  Apr 7  Apr 8  Apr 9 
Number of meals served  
Number of hours worked  
Number of meals per labour hour  
Supervisor comments  
General comments 
Recommended meals/labour hour for this position 30
Performance review by:
Restaurant Manager
Tools like this can help you identify the productivity of each staff member. Perhaps one cook is capable of producing 40 meals to the same standard in the time it takes another cook to produce 30. The first cook is more productive, and therefore a better choice to schedule on the busier evenings. You may also use this analysis to set goals and identify development options. All in all, food costs and labour costs make up the bulk of the costs in running a successful kitchen. Having a solid understanding of both and how to manage them will be key in running a successful food service operation, whether it be a food truck or a major hotel.]]>Learning Objectives
Examples
Examples
Examples
Examples
Examples
Examples
Sales/Cost/Profit Equation
Example
Projected Food Cost
Projected Labour Cost
Projected sales
Food Cost
Cost Percentage
Month  Sales This Year  Sales Last Year  Difference  Percentage Change 
January  $20 925  $19 020  $1 905  10% 
February  $21 390  $19 810  $1 580  8% 
March  $22 090  $19 725  $2 365  12% 
April  $23 020  $21 320  $1 700  8% 
May  $23 030  $21 730  $1 300  6% 
June  $23 950  $21 780  $2 170  10% 
July  $23 715  $21 365  $2 350  11% 
August  $23 720  $21 200  $2 520  12% 
September  $23 320  $20 710  $1 610  8% 
October  $25 110  $22 900  $2 210  10% 
November  $24 830  $22 200  $2 630  12% 
December  $24 900  $21 240  $3 660  17% 
Totals  $279 000  $253 000  $26 000  10% 
Month  Sales This Year  Increase by 10%  Projected Sales 
January  $20 925  $2 090  $23 015 
February  $21 390  $2 140  $23 530 
March  $22 090  $2 210  $24 300 
April  $23 020  $2 300  $25 320 
May  $23 030  $2 300  $25 350 
June  $23 950  $2 400  $26 350 
July  $23 715  $2 370  $26 085 
August  $23 720  $2 370  $26 090 
September  $22 320  $2 230  $24 550 
October  $25 110  $2 510  $27 620 
November  $24 830  $2 490  $27 320 
December  $24 900  $2 500  $27 400 
Totals  $279 000  $27 910  $306 910 
Food cost  $110 000 
Payrolls costs  $75 000 
Other controllable costs  $35 000 
Occupancy costs  $25 000 
Depreciation  $12 000 
Profit (before taxes)  $22 000 
Total  $279 000 
Item  Cost  Cost Percentage 
Food cost  $110 000  39% 
Payroll costs  $75 000  27% 
Other controllable costs  $35 000  13% 
Occupancy costs  $25 000  9% 
Depreciation  $12 000  4% 
Profit (before taxes)  $22 000  8% 
Total  $279 000  100% 
Amount  Percentage  
Sales  
Food sales  $279 000  
Total  $279 000  
Cost of sales  
Food costs  $110 000  39%  
Gross profit on sales  $169 000  61%  
Controllable costs  
Payroll  $75 000  27%  
Other  $35 000  13%  
Total  $110 000  40%  
Profit after  
Controllable costs  $59 000  21%  
Occupancy costs  $25 000  9%  
Profit before  
Depreciation  $34 000  
Depreciation  $12 000  4%  
Profit before income tax  $22 000 
End of December, 20 Sales Customers $ 258 310 (92.6%) Staff meals $ 12 500 (4.5 %) Returns and promotions $8190 ( 2.9 %) Total sales $ 279 000 Cost of sales Beginning inventory $ 16 500 Purchases $105 900 Ending inventory $ 12 400 Cost of food sold $ 110 000 (39.4%) Gross profit $ 169 000 (60.6%) Expenses Payroll Salaries and wages $ 63 750 (22.8%) E. I. and WorkSafe $ 6000 ( 2.2% ) Casual labour $5250 ( 1.9% ) Other controllable costs Advertising $ 9 800 ( 3.5 %) Laundry and linen $ 7700 ( 2.8% ) Cleaning and paper supplies $10 500 ( 3.8 %) Freight and cartage $ 5250 ( 1.9% ) Office supplies $ 1750 ( 0.6% ) Occupancy costs Insurance $ 3000 ( 1.1% ) Utilities and fuel $ 2750 ( 1.0% ) Repairs and maintenance $500 ( 0.2% ) Lease $ 18 750 ( 6.7% ) Depreciation $ 12 000 ( 4.3% ) Total operating expenses $ 147 000 (52.7%) Total net profit $ 22 000 ( 7.9%) Note: The figures in brackets are cost percentage. 
Examples
Meal Period  Mon  Tues  Wed  Thu  Fri  Sat  Sun 
5:006:00  56  72  48  54  53  119  123 
6:007:00  94  156  117  119  94  121  131 
7:008:00  145  183  156  173  156  163  165 
8 :009:00  89  87  101  115  203  207  177 
9:0010:00  73  66  54  78  177  177  96 
10:0011:00  45  42  47  37  72  74  45 
Total  502  606  523  576  755  861  737 