Cost Control and Inventory
Cost Control and Inventory tests yield, portion control, food cost, inventory turnover, purchasing and waste. Expect calculations and practical control measures.
Yield and portion control
As-purchased (AP) weight includes trim and waste; edible portion (EP) is what remains. Yield percentage = EP ÷ AP × 100. Standard recipes and portion scales control cost. Over-portioning by even a few grams destroys margin over hundreds of covers.
Food cost and pricing
Food cost percentage = food cost ÷ selling price × 100. Contribution margin = selling price − food cost. Inventory turnover = cost of goods sold ÷ average inventory. High turnover generally means fresher stock and less capital tied up.
Purchasing and storage
Set par levels, order to forecast, compare specifications and prices, and receive against the order. Store by FIFO, check temperatures and keep inventory counts accurate. Track waste and trim for stock or staff meals where appropriate.
Worked example
A case of fish weighs 10 kg AP and yields 6.5 kg EP, so yield is 65%. If the case costs $120, EP cost is $120 ÷ 6.5 = $18.46/kg. A 180 g portion costs $3.32. If the menu price is $22, food cost is about 15.1%, leaving room for labour and overhead.
Traps that cost marks
Costing from AP weight instead of EP; eyeballing portions; inaccurate inventory counts; ignoring waste and shrinkage; and ordering without checking par levels.
Key points
- Yield % = EP ÷ AP × 100.
- Food cost % = food cost ÷ selling price × 100.
- Cost portions from EP, not AP.
- Inventory turnover = COGS ÷ average inventory.
- Standard recipes and scales control portion cost.