Menu Development, Costing, and Purchasing
Core concepts
Menu engineering classifies items by popularity and contribution margin: stars (high/high), plowhorses (high popularity, low margin), puzzles (low popularity, high margin), and dogs (low/low). Understand standard recipe costing: yield percentage, as-purchased (AP) vs. edible-portion (EP) cost, and food cost percentage (food cost ÷ selling price). Know purchasing methods-prime vendor, bid buying, standing orders-and how specification sheets protect quality. Contribution margin beats food cost percentage as a decision tool because it reflects dollars, not ratios.
Traps
Questions confuse AP and EP: a 75% yield means EP cost = AP cost ÷ 0.75, not × 0.75. Watch for menu engineering questions where a high food-cost-percentage item still carries a strong dollar margin. Also distinguish selling price from cost when computing percentages.
Worked example
AP cost $6/lb, yield 75% → EP cost = 6 ÷ 0.75 = $8/lb. A 6-oz portion costs 8 × (6/16) = $3.00. At a $12 price, food cost = 3 ÷ 12 = 25%. Rule of thumb: always convert to EP before costing a plate.