Food Cost Q&A September 2011

Hello Chef,

This is Chef Dixit, how are you?

I know you are obviously fine.
                
Chef I need your help. I want few reports like how to maintain costing report, what is the hotel cost and what is the resort food cost?

If you don't mind sir, please send sir, I want to learn something different to improve my knowledge.

Thank you

Thanks for the email Chef Dixit.  I am doing well.  Thanks for asking me.

I see a department level report as the solution to your needs.  If your property utilizes a central kitchen, you need to allocate usage to the various food and beverage outlets.  There are several ways to allocate costs to each department. 

With central kitchens, you have to decide if the time and expense of costing food shipped out to each department is justified by the cost improvement.  For example, a 3% reduction in cost on a $1,000,000 is $30,000.  If you could lower your cost by 10%, the effort will definitely have a positive payoff.  Completely costing every recipe produced in a complex operation will allow you to accurately allocate costs.



Make sure the benefit allows this much tighter method.