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Jeff Ware
March 10th, 2013
   Why you need proper recipes
   Knowing & tracking your costs
   Understanding recipe construction
    ◦ batch vs. recipe vs. complete recipe vs. menu/pkg
    ◦ standards and consistency
   Different ways to do it
   Started with CBM at 14
   Electrical Engineering/
    Computer Science
    Background
   Worked at CNN & theatres
    Learned other aspects of live
    events
   Fell in love with food thanks
    to this job
   Founded in 1980 as a hot
    dog stand
   Catering spun off into
    separate company in 1991
   Peak revenue of $17 Million
   90 FT & 130 PT Employees
   45% Full Service / 35% On
    Premise / 20% Delivery
   Largest event $1.3 million
   Focused on food quality
    above all else
   Poor facility design
    challenges efficiency
   Non Chicago address is a
    marketing struggle
   394 Vendors
   3,220 Inventory Items
   13,308 Recipes
    ◦ Largest known database in existence
   3 FT Staff dedicated to managing the database
   15,381 photos (432 GB)
   Consistency in your product
   Selling based on true costs
   Consistency in sales force pricing
   Keep profit margins where they need to be
   Smart purchasing decisions
   Historical data = forecasting trends
    ◦ Caterers are selling for the future
    Know your loss            Loss from cleaning
    What is useable           Loss from
     product                    cooking/reduction
    Proper units of           ‘Useable Product’
     measure floz ≠ oz          loss

          Brisket – Start with 100# received
1.    Lose 38% in cleaning – now 62#
2.    Lose 39% in cooking – now 37.82# saleable
3.    Lose 12% in scrap/trim from slicing
FLOZ           Weight is always better than
   Water               volume unless it is a liquid
   Vodka
                       Can use weight to confirm
   Chopped Herbs
                        yield
          OZ
•   Chicken
•   Mayo
•   Flour
1.   Batch
2.   Recipe
3.   Complete Recipe
4.   Menu/Package
1.   Batch             Cooked Rice
2.   Recipe
3.   Complete Recipe
4.   Menu/Package
Sushi Roll
1.   Batch
2.   Recipe
3.   Complete Recipe
4.   Menu/Package
Sushi Roll w/ Sauce
1.   Batch
2.   Recipe
3.   Complete
     Recipe
4.   Menu/Package
Sushi Roll Assortment

1.   Batch
2.   Recipe
3.   Complete Recipe
4.   Menu/Package
   Tap Water
   Fryer Oil
   Packaging
   Skewer
   Garnish
   Loss
   Food Cost
    ◦   30%   Labor
    ◦   30%   Overhead
    ◦   30%   (or less) Food Cost
    ◦   10%   to pay sales commission and profit

Any average food cost 20%-30% is ok
 Chipotle is at 33.5%
   Pastry @ 20%
    ◦ So much additional labor
    ◦ Passed apps also good at 20%
   Proteins can be up to 50%
    ◦ What can your market bear
   Cheap items @ lower FC% (8%-16%)
    ◦ Potatoes, Rice
   Anything bought & resold @ 50%
   Packaging @ 50%
   Database (designed for recipes) – BEST
    ◦   Designed for this use
    ◦   Instantly recalculate recipes
    ◦   Relational data
    ◦   Expensive start up cost
   Database (not designed for recipes) – OK
    ◦ Relational Data
    ◦ Lacks functionality
    ◦ Takes a lot of time to setup
   Other – POOR
    ◦ Low start up cost
    ◦ Very expensive in the long run
    ◦ Data is flat – not linked throughout
   Adjust or change ingredients
   Adjust yield and portion
   Better purchasing
   Ingredients + loss = yield
   All costs included
   Ingredients are logged
    properly


   Ingredients listed in order of
    use
   Method written so a person
    with no experience could do
   Use standards – Medium
    Dice, Brunoise, etc
To download a copy of this presentation, go to:
         slideshare.net/CateringChicago

                     Jeff Ware
jware@CateringByMichaels.com     |   (847) 966-6555

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Recipe Pricing

  • 2. Why you need proper recipes  Knowing & tracking your costs  Understanding recipe construction ◦ batch vs. recipe vs. complete recipe vs. menu/pkg ◦ standards and consistency  Different ways to do it
  • 3. Started with CBM at 14  Electrical Engineering/ Computer Science Background  Worked at CNN & theatres Learned other aspects of live events  Fell in love with food thanks to this job
  • 4. Founded in 1980 as a hot dog stand  Catering spun off into separate company in 1991  Peak revenue of $17 Million  90 FT & 130 PT Employees  45% Full Service / 35% On Premise / 20% Delivery
  • 5. Largest event $1.3 million  Focused on food quality above all else  Poor facility design challenges efficiency  Non Chicago address is a marketing struggle
  • 6. 394 Vendors  3,220 Inventory Items  13,308 Recipes ◦ Largest known database in existence  3 FT Staff dedicated to managing the database  15,381 photos (432 GB)
  • 7. Consistency in your product  Selling based on true costs  Consistency in sales force pricing  Keep profit margins where they need to be  Smart purchasing decisions  Historical data = forecasting trends ◦ Caterers are selling for the future
  • 8. Know your loss  Loss from cleaning  What is useable  Loss from product cooking/reduction  Proper units of  ‘Useable Product’ measure floz ≠ oz loss Brisket – Start with 100# received 1. Lose 38% in cleaning – now 62# 2. Lose 39% in cooking – now 37.82# saleable 3. Lose 12% in scrap/trim from slicing
  • 9.
  • 10. FLOZ  Weight is always better than  Water volume unless it is a liquid  Vodka  Can use weight to confirm  Chopped Herbs yield OZ • Chicken • Mayo • Flour
  • 11.
  • 12. 1. Batch 2. Recipe 3. Complete Recipe 4. Menu/Package
  • 13. 1. Batch Cooked Rice 2. Recipe 3. Complete Recipe 4. Menu/Package
  • 14. Sushi Roll 1. Batch 2. Recipe 3. Complete Recipe 4. Menu/Package
  • 15. Sushi Roll w/ Sauce 1. Batch 2. Recipe 3. Complete Recipe 4. Menu/Package
  • 16. Sushi Roll Assortment 1. Batch 2. Recipe 3. Complete Recipe 4. Menu/Package
  • 17. Tap Water  Fryer Oil  Packaging  Skewer  Garnish  Loss
  • 18. Food Cost ◦ 30% Labor ◦ 30% Overhead ◦ 30% (or less) Food Cost ◦ 10% to pay sales commission and profit Any average food cost 20%-30% is ok Chipotle is at 33.5%
  • 19. Pastry @ 20% ◦ So much additional labor ◦ Passed apps also good at 20%  Proteins can be up to 50% ◦ What can your market bear  Cheap items @ lower FC% (8%-16%) ◦ Potatoes, Rice  Anything bought & resold @ 50%  Packaging @ 50%
  • 20.
  • 21. Database (designed for recipes) – BEST ◦ Designed for this use ◦ Instantly recalculate recipes ◦ Relational data ◦ Expensive start up cost  Database (not designed for recipes) – OK ◦ Relational Data ◦ Lacks functionality ◦ Takes a lot of time to setup  Other – POOR ◦ Low start up cost ◦ Very expensive in the long run ◦ Data is flat – not linked throughout
  • 22. Adjust or change ingredients  Adjust yield and portion  Better purchasing
  • 23.
  • 24.
  • 25. Ingredients + loss = yield  All costs included  Ingredients are logged properly  Ingredients listed in order of use  Method written so a person with no experience could do  Use standards – Medium Dice, Brunoise, etc
  • 26. To download a copy of this presentation, go to: slideshare.net/CateringChicago Jeff Ware jware@CateringByMichaels.com | (847) 966-6555

Editor's Notes

  1. Gives 50,000ft viewAble to see cost of each component > we always replace green pepper w/ red to lower costAble to reserve waste for reuse > trimmings from cake to be used for cake popsBrings consistency to product sold
  2. Use Blueberry example to talk about useable product – comes as 1pt container but some are crushed, moldy, etc
  3. 1 tablespoon parsley DOES NOT EQUAL 1 tablespoon chopped parsleyEA – only when using 1pc – ex. 1 mushroom on a skewer, 1 baked potato
  4. IngredientsMethodYieldLoss?
  5. Brings together cooked rice and other batch recipesStill need method, yield, lossNot ready to be sold
  6. Adds sauces, packaging, etc (garnish)Ready to sell
  7. Combine several saleable recipesNo packaging or sauce at this level – because it is already included in the complete recipesMethod should explain presentation and packaging details
  8. We used to aim for 25% FCLowered to 24% to account for the cost of testing recipes and doing database development
  9. Talk about pros and cons of eachRecipe Database: includes reports and prints. Often has option to import from Sysco, GFS etc to save data entry timeCan even buy recipes already builtTypes – CostGuard, ChefTec, MenuMaxRegular Database:Catering Sales/BEO Software, MS AccessOther:Word, Excel, Beverage Napkins
  10. Focus on your top selling itemsNo reason to leave your money on the table!