Chicken Price Rise in a 180-Learner Hostel Kitchen
A hostel kitchen in Windhoek serves a set two-course lunch to 180 learners, 20 days a month. The food budget is N$42.00 per learner per day, and the chicken-and-rice main course currently costs N$19.80 in raw ingredients per learner. The supplier's new quote raises whole chicken from N$62.00/kg to N$74.50/kg and will deliver only in 20 kg cartons, with a N$85 delivery charge per order. The kitchen buys whole birds and debones them; the boneless yield is 62%. The recipe uses 140 g edible portion per learner and allows 5% wastage. There is 48 kg of frozen chicken in stock bought at the old price, enough for one lunch. The kitchen freezer holds 60 kg of chicken at most, and the supplier requires 48 hours' notice for delivery. The principal will not increase the daily budget or reduce the protein portion. The cycle repeats next week, and the quote is valid for 14 days.
1. Calculate the current and new chicken cost per learner, including the 5% wastage, and decide whether the new quote can be absorbed within the N$19.80 main-course allowance. Show your working and state the assumption you make about yield and wastage.
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Working:
- Current AP price = N$62.00/kg. EP cost = 62.00 ÷ 0.62 = N$100.00/kg EP.
- Portion to prepare = 140 g × 1.05 = 147 g EP.
- Current chicken cost = 0.147 kg × N$100.00 = N$14.70.
- New AP price = N$74.50/kg. EP cost = 74.50 ÷ 0.62 = N$120.16/kg EP.
- New chicken cost = 0.147 kg × N$120.16 = N$17.66.
- Headroom under N$19.80 = N$5.10 now, but only N$2.14 on the new quote. Decision: the new quote fits arithmetically, but it is not safely absorbable. N$2.14 must still cover rice, vegetables, oil, seasoning and energy, and delivery adds roughly N$0.09–N$0.34 per portion depending on order size. Assumption: the 5% wastage is applied after deboning. If wastage is already built into the 62% yield, costs are N$14.00 and N$16.82, but the conclusion is unchanged: do not sign the quote without a purchasing or menu change.
2. Recommend a 14-day purchasing and menu plan that keeps the 140 g protein portion and the N$19.80 main-course allowance. Use the stock, carton size, freezer limit and delivery charge in your answer.
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- Use the 48 kg old-price stock first. 48 kg AP × 0.62 = 29.76 kg EP. One lunch needs 180 × 0.147 = 26.46 kg EP, so the stock covers one lunch with 3.3 kg EP spare. Use the spare in a staff meal or cold chicken salad, not to increase the learner portion.
- Calculate 14-day need: 14 × 26.46 = 370.4 kg EP. AP needed = 370.4 ÷ 0.62 = 597.5 kg. In 20 kg cartons this means 30 cartons (600 kg). Because the freezer holds only 60 kg, schedule deliveries every 2–3 days and keep total stock below 60 kg. Do not take all 30 cartons at once.
- Delivery: N$85 per order. Five deliveries cost N$425, or about N$0.12 per portion over 2,520 portions. Three deliveries would cost about N$0.07 per portion if the supplier and freezer allow it. Compare total delivered cost per kg EP, not the AP price.
- Menu: keep 140 g in a braised chicken and vegetable dish. Use the carcass for stock, braise or roast rather than fry to reduce oil, and serve rice with seasonal vegetables. Do not stretch the chicken by adding more sauce only.
- Control: weigh portions, record trim, train staff, and review after seven days. If headroom remains below about N$2.50, renegotiate or trial a cheaper cut only after comparing EP cost, not AP price.
3. The principal suggests switching to chicken drumsticks because the AP price is lower. Explain what you would compare before agreeing, and give one nutrition or quality risk of the switch.
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Compare AP price, edible yield after bone removal, EP cost per kilogram, cooking loss, labour, plate appeal, supplier reliability and protein per 140 g EP portion. Calculate cost per 140 g EP, not cost per kilogram AP. A lower AP price can be false economy if the bone ratio is high or the pieces are inconsistent. Risk: drumsticks may not deliver 140 g edible meat easily, so the guest sees a smaller portion or the kitchen over-orders to compensate. Skin-on drumsticks may also raise fat and energy, and uneven sizes can cause uneven cooking. Agree only if EP cost stays within budget, protein is at least 25 g, and a tasting shows acceptance.