A lesson on the food cost for my commercial cookery student with examples

Understanding food costs is crucial for anyone in the commercial cooking industry, as it directly impacts profitability. Here’s a lesson plan you can use with practical examples for your commercial cookery students. ### What is Food Cost? Food cost refers to the total cost of all ingredients used to prepare dishes. It's usually expressed as a percentage of sales and is vital for determining menu pricing and managing a restaurant's profitability. ### Key Components of Food Cost: 1. **Ingredient Costs**: The cost of raw materials used in dishes (e.g., meat, vegetables, spices). 2. **Portion Sizes**: Understanding how much of each ingredient is used in each serving is essential. 3. **Waste**: Calculate the waste generated during preparation, as this impacts the overall cost. 4. **Overhead Costs**: These can include indirect costs associated with food preparation, such as utilities and labour, although they are not typically included in the food cost percentage. ### Calculating Food Cost Percentage The formula to calculate food cost percentage is as follows: \[ \text{Food Cost Percentage} = \left( \frac{\text{Total Cost of Ingredients}}{\text{Total Revenue from Sales}} \right) \times 100 \] ### Example Breakdown **Menu Item: Spaghetti Bolognese** 1. **Ingredients**: - Spaghetti: $1.00 (per serving) - Ground Beef: $2.50 (per serving) - Tomato Sauce: $0.80 (per serving) - Onions & Spices: $0.70 (per serving) **Total Cost per Serve**: $1.00 + $2.50 + $0.80 + $0.70 = $5.00 2. **Menu Price**: You choose to sell Spaghetti Bolognese for $15.00 per serving. 3. **Food Cost Percentage**: - \[ \text{Food Cost Percentage} = \left( \frac{5.00}{15.00} \right) \times 100 = 33.33\% \] A food cost percentage of 33% is generally good practice in the restaurant industry; it allows for a healthy margin. ### Keeping Track of Food Costs Encourage your students to: - **Use Inventory Management**: Track what ingredients are used and their costs. - **Regularly Update Prices**: Ingredient prices fluctuate, so regularly update costs to maintain profitability. - **Minimise Waste**: Train staff on proper portioning and storage to reduce waste. ### Practical Application in a Commercial Kitchen Denoting how equipment influences food costs can help students understand the significance of their surroundings. For instance, using high-quality kitchen equipment can improve cooking efficiency and consistency, potentially reducing ingredient wastage. Consider microwaves for quick reheating or prep, such as: - **Menumaster RCS511TS Light Duty Microwave Oven** ($1,100 Watt, suitable for high-volume use) - **Bonn CM-1401G Heavy Duty Microwave Oven** (High Performance 1400 Watt, good for bulk portioning) - **Menumaster RCS511DS Light Duty Microwave Oven** (A more cost-effective manual option) While discussing the equipment, explain how investing in reliable tools not only improves food output but can also help maintain quality, ultimately impacting customer satisfaction and sales. --- By combining this understanding of food cost with practical experience in the kitchen, your students will develop the financial literacy needed to succeed in the food service industry.