The cost of running a business. This is the hardest part ( I think ) of running your business. How to cost out a recipe. How to figure in labor. Fixed, and variable costs. How much puree will a qt of strawberries yield. Will it go bad before I get a chance to use it all. What is the actual cost of an apple. What will the apple cost after I peel, and core it.
At the time I took my Cost Control class I thought it was the most boring 16 weeks I will ever spend. Mind numbing figures constantly running through your head. This carrot will yield only this amount of food after peeling. OMG stop. I wanted to drive a spike through my head. LOLOL
Since I'm in the very beginning of the venture. This Cost Control class has been my most informative. It is helping me answer the Qs I have. I want to make this (whatever) this way it will cost me this much. I NEED to sell (whatever) for this much to break even. Now will the market bear me selling it for X
Check out your local College. See if they have a culinary program. Take thier Cost Control class. Check out NRAEF. They are a great resource. By understanding the costs, pricing is so much easier.
Mike, that is exactly what I'm needing....I'd need to look for a correspondence course I imagine. What does NRAEF stand for?
Thanks for the advice...I'm sure it can really help me with this part of the business, I agree that it is the trickiest part!
This carrot will yield only this amount of food after peeling. OMG stop. I wanted to drive a spike through my head. LOLOL
My first laugh of the morning! Cracks me up!!!
Another aspect is the cost of labor vs. the cost of the item.
Example: I buy cantaloupe and honeydews in the "fruit in a bucket". THe fruits are already peeled and halved. I just have to slice them and put them on a tray. They have a longer shelf life. They cost a little more than buying fresh, but I'm not putting out payroll for someone to peel and half them AND I dont' have to account for any waste.
Chicken..... I was buying boneless/skinless, but I still had to spend over 3 hours per wedding, doing some cutting and trimming. Found another supplier where it goes straight from box to skillet and it's practically the same price!! BIG labor savings!
The reason I provide real plates and silverware in my buffets is because it is cheaper for me to pay someone to run 100 plates thru the comm'l dishwasher (takes 55 seconds to totally wash 20 plates) than it is to buy disposable plates .... and I'm not a tree hugger, but it saves all of that from going into the landfill, too.
I'm constantly doing the scale-balancing between "cost? Labor?"
Homemade - you should also look into your local community college because if they offer a hotel and restaurant management program, they will offer some type of Cost Control class (might be called Food and Bev Management). Many community colleges also offer these classes online. Otherwise an online NRA course isn't a bad way to go.
Mike, I just finished with Cost Control this past spring, so I know what you mean! Thank goodness for industry yield charts so you can look up that carrot yield instead of figuring it out for yourself!
If you cannot find this class, I think that you can also take a managerial accounting class it should be just as painful , I mean informative.