ENTREPRENEURSHIP-WITH-BASIC-COST-CONTROL-AND-MEASUREMENT (1).pdf

Cookery

1. ENTREPRENEURSHIP WITH BASIC COST CONTROL AND
MESUREMENTS
LESSON 1

2. COOKERY
•Is a very challenging
subject for every learner
who has a track mind of
acquiring skills in food
business. For one who
does not have any
background on both
food and business, it is
essential to have
passion in doing both at
the same time.

3. OBJECTIVES:

At the end of the session, the lifetime learners must be
able to:

•Prepare an activity plan that aligns with cookery as a
business endeavor;
•Understand the method of computing the food cost,
selling price with the labor and other expenses;
•Wisely make use of simple mathematics and basic
accounting during the process;
•Utilize resources( money, manpower, place and materials)
without waste;
•Appreciate the importance of dovetailing the different
jobs and transactions daily to avoid loss.

4. ENTREPRENEURIAL COMPETENCIES
•Refers to the key characteristics that should be
possessed by successful entrepreneurs in order to
perform entrepreneurial functions effectively.
•Entrepreneurship has been usually been defined as the
process of designating, initiating and running a new
business, which classically begins as a small business,
such as a start- up company, offering a product,
process or service for sale or hire, and the people who
do so are called “entreprenuers”
•It is also the ability and readiness to develop, organize,
and manage a business endeavor along with any of its
dangers in order to make a profit.

5. IN FOOD BUSINESS, WE SHOULD CONSIDER
MANY FACTORS, LIKE:
1.Vision and mission of the business
2.Goals or objectives
3.Background or history
4.Capital plan
5.Planning is a basic management function involving the
formulation of one or more detailed plans to achieve the
optimum balance of needs or demands with the available
resources.
6.Products and services
7.Management , staffing, partners and professional support.
8.Operations: production schedule, suppliers of ingredients,
labor and machine requirements
9.Marketing strategies
10.Sales and Accounting for the revenue

6. WORDS TO REMEMBER AND IDENTIFY:
1.Food cost – the expense to an establishment for food,
incurred when food is consumed for any reason.
2.Sales - revenue resulting from the exchange of
products.
3.Recipe - a list of ingredients and the quantities of
those ingredients needed to produce a particular
item, along with the procedure to follow.
4.Total Sales- is a term that refers to the total volume of
sales expressed in peso terms. This may be for any
given time period, such as year, month, week.
5.Total Number Sold- refers to the total number of
steaks, shrimp, cocktails or any menu item sold in a
given period.

7. HOW TO PREPARE AND COST RECIPES
1.Standardization of recipe is a written formula for
producing food item to achieve the desired
quality and the right quantity and been tested for
several times using the same specification of the
ingredients, cookware, and techniques or the
cooking procedure through the use of the
evaluation sheet.

8. THE IMPORTANCE OF STANDARD RECIPE:
a)For controlling food cost, for as long as the
portion size of each ingredient is
consistently followed;
b)For controlling food quality. Since the
recipe is tested, the quality of food can be
consistently maintained provided the
standard portion is also achieved;
c)An aid in costing

9. 2.Standard specification is a concise description
of food ingredients with the exact size,
quantity, and quality desired for each recipe/
dish.
3.Standard yield is the weight or number of
servings of the product that has been tested
and used as a basis for bulk production.
4.Portion size is the weight or measure per
serving of a certain recipe which is so
important in the quantification and in the
calculation of selling price.

10. Sample of Tested Recipe (Standardized Recipe)
Recipe no. 001
Name of the Recipe:

Rolled Spinach Pork Loin









Tested by: Chef BoyYield: 20
Cost serving: P 46.07On: April 01, 2016
Serving size: 100 gSelling Price: P 92.14 or
serving or 92.00

11. Quantity
Needed
Ingredients Specification

Unit Cost

Total Cost

15 ml Olive oil Pure 120.00/100 ml P 18.00
30 g Onion Red, chopped 50.00/kg 1.50
10 g Garlic Taiwan,
minced
80.00/kg .80
300 g Spinach Fresh, chopped 38.00/ 500 g 22.80
200 g Bacon Crisp-cooked,
drained, and crumble
127.00/200 g 127.00
150 g Parmesan Grated 350/ 200 g 262.50
1 ½ kg Pork center loin Boneless 270/ kg 405.00
Total

P 837.60
Plus 10 % buffer

P 83.76

P 921.36
Cost/ serving

P 46.07
Selling price/ 50% FC

P 92.14
Price/serving P 92.00

12. PROCEDURE:
1.In a large skillet, heat oil over medium hot heat.
2.Add onion and garlic and cook until onion is tender nut
not brown. Remove skillet from heat.
3.Stir in spinach, bacon and parmesan cheese; set aside
4.Trim excess fat from pork.
5.Pin wheel the pork loin, start cutting length wise ½ inch
under the fat cap on the roast.
6.As you cut the roast, gently rotate the roast at the same
time. This will allow the roast to “unroll” as you cut it.
7.When the roast is completely cut. It should be a
rectangular piece of meat between ½ and 1 inch thick.
8.Spread spinach mixture over cut side. Roll up the loin
tightly from a long side to resemble the initial roast.

13. CONT.
9.Tie securely with 100 percent cotton string.
10.Place the roast on a rack in a roasting pan; insert a
meat thermometer into the thickest part.
11.Roast in 325 degrees F oven for 1-1/2 to 1-3/4 hours until
meat thermometer register 150 degree F.
12.Transfer the roast to a serving platter. Cover loosely with
foil and let stand for 15 minutes before carving. (The
temperature of the meat after standing should be 160
degree F.)
13.Remove string; cut into 1-inch-thick slices.

14. RECIPE FORMAT
Recipe No.:
Name of Recipe:Tested by:
Date Tested:Yield:
Serving Size (size or weight per serving):
Cost/Serving:Price per serving:
1 2 3 4 5
Quantity Ingredients Specs Unit Cost Total Cost


Total P
Plus 10% buffer P
Cost per serving P

15. CONT.
Selling Price %
FC
P
Price/Serving P

Procedures
1.
2.
3.

16. TESTING THE RECIPE
1.The recipe is tested in terms of quality and quantity or
yield. The chef prepares the ingredients based on the
recipe to be tested and a panel of tasters will be
asked to rate according to appearance, texture, and
taste; quantity or number of expected servings is
achieved.

The panel of tasters shall be given an assessment
sheet or evaluation sheet where they write the results,
comments, and recommendations.

17. CHARACTERISTICS OF THE FOODS TO BE
RATED:
a)Appearance and presentation or aesthetically
appealing;
b)Texture refers to the crispiness, tenderness, or
cohesiveness of the food;
c)Taste refers to the products’ sourness, saltiness, and
balance in palatability of food;
d)Portion size is it too big, too small, or just for its price;
e)Other qualities needed to be assessed.
Adjustments in portioning of ingredients, the
manner of preparation and cost shall be done based
on the result of the recipe tested.
PREPARED BY: CHEF SANDRA MIJARES

18. 2.The tasting chef shall weigh the finished product and
write down on the evaluation sheet the actual weight
as compared to the expected weight.


A.Write down the total number of servings produced as
compared to expected number of servings.
B.Recipes that passed the test shall now become
standardized and such shall be followed strictly by
kitchen in-charge, in the preparation of the pastry.

19. FACTORS TO CONSIDER IN THE
PREPARATION AND COSTING OF RECIPE
1.Use the Standard Recipe Format and write the
name of the product being tested and the chef
who conduct the product testing;
2.Determine the yield or number of servings desired
like 10 or 20 servings.
3.Decide the portion size of the product being
tested. Example: an Empanada individually cut
into 30 grams per portion with 10 grams chicken
filling gives a total portion size of 40 grams per
piece. Therefore, if the pastry dough weighs 550
grams will produce 18 pieces of Empanadas
which needs an 180 grams chicken filling.
4.In column 1 indicates the volume of ingredients to
be used to prepare the Empanada.

20. 5.In column 2 write the list of the ingredients needed
for empanada;
6.In column 3, write the exact specification of the
ingredients, like 500 grams of all-purpose flour,
branded or re-packed not flour only;
7.In column 4 write the price of the ingredients as
purchased per unit. Example: All-purpose flour, Gold
Medal – P 67.50 per 800 grams which we call it unit
price.
8.Multiply the unit cost with the quantity used and the
result divide by the unit and meat cost will be the
total cost.

21. Example: Pork Loin needed is 500 grams multiplied by
the cost of Porkloin is P270.00/1000 grams. Them divide by
1000 grams

Total Cost=1500grams xP270.00
1000grams
=1500x 270
=405,000 /(divide) 1000
=P405.00 the cost of the 1.5 kg of
pork loin

Do it with the other succeeding ingredients until all has
been computed its total cost

22. 9.To have a reliable unit price or cost of ingredients, a
canvas of prices for ingredients must be available done
regularly or as needed.
10.Add the Total Cost with the 10% Buffer and the result is the
adjusted food cost. The buffer margin is designed to
compensate for the increase in prices of ingredients.
11.Solve for the cost per serving by dividing the gross food
cost by the number of servings (yield).

C.Take a photo of the recipe and attach the recipe card.
D.Make a recipe card for each recipe tested to serve as a
reference for kitchen staff in the preparation of the
product.

23. DETERMINING THE FOOD COST AND
SELLING PRICE
Net Food Cost is the portion sales which is spent for the
materials (i.e. ingredients) or the amount spent for every peso
sold.
Food Cost Percentage is the ratio of cost of materials over the
net food sales.

Net Food Sales = Gross food sales – tax and service charge


FOOD COST
x100

Food cost % is calculated as NET FOOD SALES

24. CONT.
•If the buffer margin is considered the food cost will be
actual cost + buffer margin. This is shown in the sample
recipe.
•The same process has to be done for all and to play
safe, allocate a buffer margin of at least 10% and add
this to the total cost. The sum will be the total cost. The
buffer margin is intended to cover for trimmings and
fluctuations in the prices of ingredients which can affect
the food cost.

Example: Total cost of rolled spinach pork loin = P 837.60
plus a buffer margin of 10%= P83.76 which gives a total
of 92.14.

25. SELLING PRICE
•For the computation of the selling price, a
given food cost budget that may range
from 30% to 50 depends on the type of food
service operation. There are two methods in
computing the selling price:

26. A. COST PERCENTAGE METHOD
•Use the formula: Selling price = materials cost (cost of
ingredients) divided by desire food cost %.

Example: if the cost of ingredients for the portion of Rolled
Spinach Pork Loin is P 41.66/serving without the buffer and
the desired food cost % is 50%, the selling price is
computed as:

P41.66 / .5(50%) = P83.32
if a buffer is used, the selling price will be:
P41.66+ P4.16 (10% buffer)= P45.82 / .5
= P91.64/serving

27. B. MARKUP FACTOR METHOD IS USED AS
FOLLOWS:
Selling price = material cost x markup factor
Whole markup factor is equal to 100% divided by the
desire food cost %
If the desire food cost percentage is 50%, the markup
factor will be:

100
= 2
50

28. CONT.
The selling price of Rolled Spinach Pork Loin per
serving of 100 grams is:
SP= P46.07 x 2 = P92.14/serving

Sample:
ROLLED SPINACH PORK LOIN may be sold per
serving at P92.00 plated excluding side dish and
garnishes.

29. Sample Presentation. Set the table properly
Play with Height
Be Odd Chose your Plates Wisely.
Read the clock. Play with color and TextureGarnish Appropriately

30. CONT.
Plus a business logo for your planned business.
Here is an example.


Sample of Business Logo

31. PROCEDURE IN CALCULATING PRICES:
1.Determine the total cost of the recipe. Add the Buffer
when necessary.
2.Decide for the Food Cost budget and the markup
factor. At present, the industry is using the markup
factor.
The food cost percentage varies depending on the
desired markup of the establishment. Fine-dining that
caters to the high-income group can have a food cost
percentage ranging from 30-35% of the selling price,
casual dining usually follows a40 to 45% food cost ratio
and canteen can go high as 50 to 55% if the cost of
operation is low.

32. IN DECIDING FOR THE FOOD COST BUDGET,
CONSIDER:
a.The cost operations particularly fixed cost of rental,
labor, amortization, etc. If the fixed cost is high and eats
as much as 40-50% of the revenue, the food cost
percentage should be lower, otherwise, nothing or too
little is left for profit.
b.Consider the budget of the probable patrons. A low
food cost percentage means higher markup resulting
high prices. If the market is Class B and Class C, they
may find the price too high and it is unlikely for them to
patronize the item.

33. CONT.
c.Consider the prices of the competitors. If the food
budget will result in price much higher that competitors,
there is a risk of losing patrons in favor of competitors.
Make prices competitive or comparable with other
competitors. Once the cost of the recipe and the food
cost budget is determined you can proceed for retail
prices computation.

34. CONTROL IN PRODUCTION MUST INSURE
THAT:
1.The number of servings produced shall be equal to the
number of servings expected or the same as the one
indicated in the recipe card;
2.The items that are dispatched from the kitchen are
properly recorded, received by the server or sales
employee;
3.In a cafeteria or Fastfood service, the food served to
the customer must strictly conform to the prescribed
portion size so that the expected sales be generated. If
possible, the number of servings sold must match the
number of servings produced; it is important that the
counter staff use standard measuring cup or container
to be able to control portioning of dishes.

35. CONT.
4.All items that are dispatched from the kitchen or food
counter are properly billed and paid for.

A control system for purchasing, receiving, issuing,
production, service to sales should be established thus
avoiding variances and losses. After monitoring, a
summary of the report should be submitted to the Sales
and Accounting for analysis and a Statement of
Income and Expenses for the month is established.

36. STATEMENT OF INCOME AND EXPENSES
FOR THE MONTH ENDING JUNE 2004
SALES
Food
Beverage
Non-alcoholic drinks

Total Sales
P557,000
200,000
43,000

P800,000
70%
25%
5%

100%
Less: Cost of sales
Food (ingredients)
Beverage (liquors)
Non-alcoholic drinks
Total Sales

P194,950
40,000
15,000
P249,000

35% Food sale
20% Beverage sales
35% Beverage sales
GROSS PROFIT
Less: Operating Expenses
Variable
Fixed
Total Expenses

P240,000
200,000
P440,000

30%
20%
Profit before Tax P110,000 14%
Number of covers served 2667
Average check 300
Labor cost 22%
Number of seats 100

37. CONT.
1.Using the figures in the sample statement of Income
and Expenses, variance of % will be:

P249,000 + 240,000=P489,000
P800,000P800,000

=6.1

38. CONT.
2.Determine the contribution margin percentage. This
represents the ratio of sales peso which is left over after
variable costs are deducted to cover for fixed cost and
for profit. The formula to determine this contribution
margin percentage is:

1.00-variable cost%

Using the above figures, the contribution margin will be:

1.00-.61=.39

39. CONT.
3.Determine the total fixed cost in pesos. In this example
it is P200,000.
4.After getting the figures for items 1-3, compute for the
break-even point, using the formula:

Break-even cost of sales=Fixed cost
Contributing margin%
Using the figures in the sample income/expense
statement, the break-even point shall be computed as
follows:BEP=P200,000
1.0 - .61
=P512,820.27

40. CONT.
To get the volume of sales to produce specified profit, the
formula will be:

Fixed cost+the specific cost margin desired
Contribution margin%

To show . . .P200,000 + 160,000 (this is 20% of P800,000)
.39

=P923,076.90

41. FOOD SAFETY AND SANITATION
LESSON 2

42. OBJECTIVES:
At the end of the session, the lifetime learns must be
able to:

•Identify the different food-borne diseases and kitchen
injuries, and learn ways of preventing them;
•Compare or differentiate cleanliness from sanitation;
•Show the proper way of washing hands to prevent
contamination, and
•Share the importance of food safety and sanitation.

43. FOOD PREPARATION
•Is completed with special care to make sure
that the food we serve to the clientele is safe
and free from harmful bacteria or
micro-organisms. A safe working environment
and a sanitized working atmosphere in any food
service industry are essential.
•Even more important, poor sanitation and
safety can cost a lot of money. Poor food
handling procedures and unclean kitchens can
cause illness, unhappy costumers, and even
fines, summonses, and lawsuits

44. CLEANING
•Refers to physical removal of dirt and food particles
on the working surface while
•
•Sanitizing is the reduction of a number of
microorganisms to safe levels on the surfaces that
come in contact with food like working tables,
kitchen knife, and other tools and equipment that
can be harmful to the customers and employees.

45. THESE THREE HAZARDS ARE BIOLOGICAL,
CHEMICAL, AND PHYSICAL HAZARDS:
1.Biological hazards are food that are contaminated
with toxins found in food causing diseases and
micro-organisms like pathogens such as viruses, fungi,
parasites, and bacteria;
2.Chemical hazard refers to the food that has been
contaminated with cleaning materials like insecticides.
Chemical poisoning is when chemicals are not
intended. So, untoward reactions happen. Therefore,
there contaminations are accidental, it is important
that we have to be extra careful in the preparation
and service of food.

46. CONT.
3.Physical hazard are bits of glasses, staple wires,
paint chips, rodent hair caused by careless
handling of food.

47. OTHER RESOURCES OF CONTAMINATION
1.Botulism is a kind of food intoxication caused by
spore-forming bacteria called Clostridium Botulinum.
Poisoning from this could be fatal and its symptoms are
vomiting, diarrhea, gastro intestinal pain, difficulty in
breathing, blurred vision and damaged central nervous
system.
2.Staphylococcus is caused by the toxin produced by
Staphylococcus Aureus with following symptoms:
vomiting, cramps, and diarrhea. There are foods that
are not handled and stored properly and those high
protein like eggs, custards, milk and salads, and
reheated foods.

48. CONT.
3.Salmonellosis refers to intoxication caused by
Salmonella Typhimurium that caused a headache,
acute gastroenteritist and diarrhea found in egg, meat,
poultry, shellfish, and sauces. To avoid the illness do not
leave food in danger zone for more that two hours.
Reheat leftover food to an internal temperatures since
salmonella can be killed by temperature.
4.Ergotism is caused by mold that grows on wheat and
rye. The symptoms are hallucinations, convulsions, and
gangrene of extremities.

49. CONT.
5.Streptococcus occurs within one (1) to four (4) days.
This is caused by various bacteria of anaerobic in
nature. Some are transmitted by animals and workers
contaminated with feces, others from nose and throat
of infected humans.
6.Trichinosis is caused by trichinella spiralis, a spiral worm
that lives in intestines where it matures and lays eggs
and later invades the muscle tissue. It is transmitted by
infected swine and rats. Symptoms: fever, diarrhea,
sweating, muscle pain, vomiting, and skin lesions.

50. CONT.
7.Cross-contamination refers to the transfer of
micro-organism from a contaminated source to
another which is usually improper or unsanitary
handling food. To avoid, follow the following tips:
a.Food should be stored properly: FIRST-IN, FIRST-OUT
procedure or FIFO
b.Never use chopping board and knifes for raw material
for cutting cooked food.
c.Thaw frozen foods properly.
d.Kitchen personnel should follow proper personal
hygiene and sanitation procedure: good grooming,
neat and clean.

51. CONT.
e.Proper cooking and reheating should be practiced.
f.Food should be prepared carefully, keeping in mind
tom maintain cleanliness and sanitation.
g.Cleaning and sanitizing should meet the standard
requirement.
h.Pest management
•Build them out of your facility
•Create an environment in which they cannot find
food, water or shelter.
•Rely on professional extermination.
i.Dish and equipment cleanliness.

52. SHAPE CLASSIFICATION OF BACTERIA

53. BINARY FISSION
Control in the Fight Against Bacteria
1.Temperature
The most important factor in the
pathogenic bacteria’s environment because
it is the factor easily controlled by food
service workers.

54. 2. TIME
a.Lag phase – Getting comfortable
b.Log phase – Accelerated growth
c.Stationary phase – overcrowding
d.Decline or negative growth phase – Bacteria die
at an accelerated rate.
Bacterial Growth Curve

55. 3. MOISTURE
a.Bacteria need moisture to live.
b.Bacteria growth is halted but not killed in
dehydrated foods.
c.When dehydrated foods are rehydrated,
bacteria present can be flourish and food
may become potentially hazardous.

56. 4. ACID/ALKALI BALANCE
a.Bacteria are effected by the pH of their
environment.
b.They can survive in wide range of pH level.
c.They prefer neutral environment with a pH
of 6.6-7.5.

57. 5.ATMOSPHERE (OXYGEN)
a.Aerobic
Thrive on oxygen
b.Anaerobic
Cannot survive in the presence of oxygen.
c.Facultative
Will adapt and can survive with or without
oxygen.

58. F for food
A for acid
T for temperature
T for time
O for oxygen
M for moisture
Where does the bacteria grow?

59. VIRUSES
Invade the living cells of a host, over those
cells’ genetic material and cause the cell to
produce more viruses
1.Hepatitis
2.Norwalk
3.Foot and mouth disease

60. FUNGI
Plants ranging from single-celled organisms to
giant mushrooms.
1.Mold
2.Yeast

61. CONTAMINANTS
1.Residual
Used in growing the food supply
2.Food service chemicals
Cleaners, polishes, pesticides, and
abrasives
3.Toxic metals
Lead, mercury, copper, zinc, and antimony

62. HAND WASHING
1.Use hot water.
2.Apply antibacterial soap.
3.Rub hands and forearms briskly with lather for at
least 20 seconds.
4.Scrub between fingers and clean nails with a
clean nail brush.
5.Rinse thoroughly under hot running water; reapply
soap and scrub hands and forearms for another 5
to 10 seconds; rinse again.
6.Dry hands with a single-use towel using the towel
to turn off the water; discard the towel in a trash.

63. HACCP
Hazard Analysis Critical Control
Points is a management system in
which food safety is addressed
through the analysis and control
of biological, chemical, and
physical hazards from raw
material production, procurement
and handling, to manufacturing,
distribution and consumption of
the finished product. HACCP
Principles & Application
Guidelines.

Source: FDA

64. Principle 1: Conduct a Hazard Analysis

The application of this principle involves listing the steps in the process
and identifying where significant hazards are likely to occur. The
HACCP team will focus on hazards that can be prevented, eliminated
or controlled by the HACCP plan. A justification for including or
excluding the hazard is reported and possible control measures are
identified.

Principle 2: Determine Critical Control Points (CCPs)

A critical control point (CCP) is a point, step or procedure at which
control can be applied and a food safety hazard can be prevented,
eliminated or reduced to acceptable levels. The HACCP team will use a
CCP decision tree to help identify the critical control points in the
process. A critical control point may control more that one food safety
hazard or in some cases more than one CCP is needed to control a
single hazard. The number of CCP's needed depends on the
processing steps and the control needed to assure food safety.

65. Principle 3: Establish Critical Limits

A critical limit (CL) is the maximum and/or minimum value to
which a biological, chemical, or physical parameter must be
controlled at a CCP to prevent, eliminate, or reduce to an
acceptable level the occurrence of a food safety hazard. The
critical limit is usually a measure such as time, temperature, water
activity (aw), pH, weight, or some other measure that is based on
scientific literature and/or regulatory standards.

Principle 4: Establish Monitoring Procedures

The HACCP team will describe monitoring procedures for the
measurement of the critical limit at each critical control point.
Monitoring procedures should describe how the measurement
will be taken, when the measurement is taken, who is responsible
for the measurement and how frequently the measurement is
taken during production.

66. Principle 5: Establish Corrective Actions

Corrective actions are the procedures that are followed when a
deviation in a critical limit occurs. The HACCP team will identify the
steps that will be taken to prevent potentially hazardous food from
entering the food chain and the steps that are needed to correct the
process. This usually includes identification of the problems and the
steps taken to assure that the problem will not occur again.

Principle 6: Establish Verification Procedures

Those activities, other than monitoring, that determine the validity of the
HACCP plan and that the system is operating according to the plan.
The HACCP team may identify activities such as auditing of CCP's,
record review, prior shipment review, instrument calibration and product
testing as part of the verification activities.

67. Principle 7: Establish Record-keeping and Documentation
Procedures

A key component of the HACCP plan is recording information that can
be used to prove that the food was produced safely. The records also
need to include information about the HACCP plan. Record should
include information on the HACCP Team, product description, flow
diagrams, the hazard analysis, the CCP's identified, Critical Limits,
Monitoring System, Corrective Actions, Recordkeeping Procedures,
and Verification Procedures.

68. THE SAFE WORKER
1.Personal safety
2.Occupational Safety and Health Act (OSHA)
3.Fire safety
4.Know what kind of fire extinguisher you have and
how to use it.
5.First aid
CPR
Heimlich manoeuvre