The dealer prices of meat, fish, and poultry change almost daily. As dealer prices change, the foodservice operator ’ s usable pound costs and portion costs change as well. Therefore, it is good to have some simple means for cal- culating both usable pound costs and portion costs whenever dealer prices change, so that it is unnecessary to complete a new butcher test form each time. The cost factors serve this purpose and are calculated in the following manner:
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CALCULATING STANDARD PORTION COSTS 181
_________________ Cost per usable lb.
Purchase price per lb. Cost factor per lb. $12.4988
________
$6.11 2.0456
_________________ Portion cost
Purchase price per lb. Cost factor per portion $4.6871
_______ $6.11 .7671
These factors are extremely useful. Suppose one were to learn that the dealer price per pound for beef tenderloin was expected to increase from the present $ 6.11 to $ 6.37. This price increase would increase portion cost, but those in foodservice management must know more than this obvious truth: They must know the standard portion cost at the new, higher dealer price. One could proceed to complete a new set of butcher test calculations, but although that could be done, it would take some time. A simpler, faster method is to use the cost factors and the formulas provided, as follows:
Cost factor per lb. New dealer price per lb. Cost of a usable lb. at new dealer price 2.0456 $6.37 $13.0305 $13.03 Cost factor per portion New dealer price per lb. Cost of a portion of same size at new dealer price
0.7671 $6.37 $4.8864 $4.89
By this means, one can determine quite specifically that the $ 0.26 increase in the dealer price per pound will lead to an increase of $ 0.53 in the cost of a usable pound and $ 0.20 in the portion cost. Moreover, all of these determinations can be made much faster than all the calculations required on the butcher test form can be completed.
The portion cost factor has one very serious shortcoming: It can be used only if the size of the portion for which one is determining cost is iden- tical to that of the portion used to establish the cost factor. If the cost factor is based on a 6 - ounce portion and one is attempting to determine the cost of a 5 - ounce portion at a new dealer price, the portion cost factor cannot be
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used. It would be necessary to use the cost factor per pound to determine the cost of a usable pound at the new dealer price, divide that by 16 ounces to determine the new cost of 1 ounce, and then multiply that ounce cost by the number of ounces in the portion — a cumbersome business.
To make it easier to determine costs using factors, we recommend using the following derived formula, which can be used to determine the cost of a portion of any given size at any given dealer price, provided that one has previously determined cost factor per pound for the item.
Cost factor per lb. Portion size (expressed as a decimal) Dealer price per lb. Portion cost at dealer price specified The decimal equivalent of a given number of ounces is determined as follows: Number of ounces 16 (ounces in a pound) Therefore, 6 oz. 16 oz. .3750 lb.
The following is an example of the use of the cost factor per pound cal- culated in the butcher test in Figure 6.3 . This new formula may be used to find the cost of the 6 - ounce portion at the $ 6.37 dealer price, as follows:
2.0456 .375 (6 oz. as a decimal) $6.37 $4.8864 $4.89 Although one can find the cost of the 6 - ounce portion using the por- tion cost factor alone, this factor cannot be used directly to determine the cost of a 7 - ounce portion. The new formula can be used:
Cost factor per lb. Portion size (expressed as a decimal) Dealer price per lb. Portion cost at specified dealer price 2.0456 .4375 (7 oz. as a decimal) $6.37 $5.7008 $5.70
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In fact, for all practical purposes, this single formula can be used to replace both formulas (illustrated previously in the chapter) that use cost fac- tors to determine cost of a usable pound at a new dealer price and cost of a portion at a new dealer price.
These formulas provide owners, managers, and chefs with the means for determining new food costs as dealer prices change. At the same time, they enable one to determine when changes in menu sales prices may be required to maintain relatively stable cost - to - sales ratios.
To ensure the accuracy of figures derived by this method, it is necessary to perform butcher tests regularly on reasonable numbers of pieces. The test on one piece alone is not reliable, because the piece may not be typical, even if it was purchased according to specifications. It is better to have test results on several different pieces in order to arrive at averages.
Establishments that do butcher tests find several other important uses for the results:
1. Butcher tests on pieces purchased according to specifications from two
or more dealers give results that are useful in determining from which dealer to buy.
2. Butcher tests conducted periodically allow the manager to appraise the
extent to which any one dealer is adhering to specifications.
3. Menu prices can be more intelligently planned, because exact costs are
known.
Those with experience in foodservice will recognize that comparatively few establishments do regular butcher testing today. That was not the case in years past, however. A primary reason for the change has been the availability of preportioned entr é es from vendors: steaks, chops, and other items portioned before cooking. Additionally, several books available provide standardized infor- mation that can be used to approximate yield information. However, the butcher test is still extremely valuable to the manager who wants to compare the cost of a preportioned item purchased from a vendor with the cost of an identical item portioned in the restaurant. Typically, one would expect to find a lower standard portion cost for the item portioned in the restaurant, but this figure takes into account only food cost for the item, not labor cost. On the other hand, the por- tion cost for the preportioned item purchased from a vendor includes the ven- dor ’ s labor cost. Therefore, to make a valid comparison, management would have to determine labor cost per portion for items portioned in the restaurant.
Although the butcher test makes it possible for foodservice operators to determine portion costs for entr é e items portioned before cooking (steaks,
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chops, and fillets), it is of no value for determining portion costs for one large group of menu items — those that cannot be portioned until after cooking. Consequently, portion costs for these items (typically roasts of beef, pork, lamb, and other meats) cannot be determined until after the cooking process is complete. A different procedure, known as the cooking loss test, is required.
Cooking Loss Test
The primary purpose for the cooking loss test is the same as that for the butcher test: determining standard portion cost. The cooking loss test is used for those items that cannot be portioned until after cooking is complete. With these items, one must take into account the weight loss that occurs during cooking. Therefore, one cannot determine the quantity remaining to be por- tioned until cooking is completed and portionable weight can be determined. Cooking loss varies with cooking time and temperature, and it must be taken into account in determining standard portion costs. Moreover, although the availability of preportioned meats has rendered the butcher test less common in recent years, the cooking loss test is as important and useful as ever.
Before considering a detailed explanation of the cooking loss test, it is useful to note that the butcher test form and the cooking loss form have many similarities (see Figure 6.4 ). A glance at the form shows that the col- umn headings are the same as those on the butcher test form. The major dif- ference between the forms lies in the “ Breakdown ” column: On the butcher test form (Figure 6.3 ), terms are written in this column as the butcher test progresses; on the cooking loss test form, they are preprinted ( “ Original Weight, ” “ Trimmed Weight, ” and so on). It is important, then, to learn the meanings of these terms in order to understand the cooking loss test.
The cooking loss test is perhaps best explained by illustration. Figure 6.4 shows a completed set of test results for one pork loin served at the Grandview Bistro as Loin of Pork à Maison. As purchased, the pork weighed 7 pounds 8 ounces. At a dealer price per pound of $ 6.35, the purchase price for the loin was $ 47.63. All this information is recorded on the first line of the test form, “ Original Weight. ” The loin required some butchering before it could be cooked. Presumably, it was given to a butcher, who cut away unnecessary parts, primarily fat, to prepare the loin for roasting. After butchering, the loin was found to weigh 6 pounds 8 ounces. This weight is recorded on the line marked “ Trimmed Weight. ”
Next, trimmed weight (6 lbs. 8 oz.) is subtracted from original weight (7 lbs. 8 oz.), and the difference (1 lb. 0 oz.) is recorded on the line marked
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