C

AP P END IX

Management Math
and Formulas
by Susan Davis Allen, MS, RD, CHE

Management Math Formula Example

Edible Yield Factor Edible portion (EP)÷As purchased 16 lbs. of broccoli (AP) after cleaning yield 13 lbs. (EP)
Used to calculate (AP) 13 ÷ 16 = 81% yield
edible yield from
produce or meat
FTE One person @ 8 hrs./day x 5 days/ If you have six employees who work full-time, you
Full-Time Equivalent wk. x 52 wks./yr. = 2,080 hrs have 6 FTEs; if you have 10 employees, two work
full-time, two work 3/4 time, and six work 1/2 time,
how many FTEs are there?
2 x 1 FTE = 2 x 2,080 = 4,160 hours
2 x .75 FTE = 1.5 x 2,080 = 3,120 hours
6 x .5 FTE = 3 x 2,080 = 6,240 hours
Total FTEs = 6.5 x 2,080 = 13,520 hours
Inventory Valuation Number of purchase units on In a cooler:
The value of all of your hand x product price, then added 1 bag lettuce x $8/bag = $8.00
inventory together
10 lbs. carrots x .39/lb. = $3.90
25 lbs. onions x .25/lb. = $6.25
Inventory Valuation = $ 18.15
Productivity Rate A measure of work such as trays 14 trays assembled in seven minutes
Used to measure assembled ÷ measure of time 14 ÷ 7 = 2 minutes/tray
the productivity
of foodservice
employees
Recipe Cost List of ingredients with price per Recipe: Scrambled Eggs for 12 clients:
Used to determine the amount of ingredient, added 18 eggs @ $1.50/doz. ($1.50 ÷ 12 = $.125/egg)
cost of a standardized together ÷ by the recipe yield = 18 x .125 = $2.25 for 18 eggs
recipe price per portion
1/4 cup milk @ $4.00/gal (16 cups/gal and four 1/4
cups/cup) $4.00 ÷ 16 = $.25/cup ÷ 4 = $.0625 for
1/4 cup milk
Total cost/client = $2.25 + .0625 = $2.31 ÷ 12 = .19/
client
Scaling a Recipe Divide the New yield by the Let's use the Scrambled Eggs above. You want to
Used when increasing Original yield. Remember it by the increase this recipe to serve 50 people.
or decreasing the fact that ‘N’ comes before ‘O’ in the 1. Determine the conversion factor: 50 ÷ 12 = 4.167
amount a recipe alphabet so the formula is always
2. Multiply that by each ingredient:
serves N ÷ O to get the conversion factor.
Then multiply the ingredients in the 18 eggs x 4.167 = 75 eggs
recipe by the conversion factor. .25 cup milk x 4.167 = 1 cup milk Continued...

Foodservice Management—By Design 501

C Management Math and Formulas

Management Math Formula Example

Tray Accuracy 1. Count the total numbers of For today's noon meal, there are seven items,
Used to determine the items on the menu ticket including drink and condiments. You discover
number of errors in 2. Count the number of errors two errors.
assembling trays you discover on one tray 2 ÷ 7 = .29 x 100 = 29%
3. Divide the number of errors
by the total number of items

Monthly Food Cost 1. Record beginning inventory For the month of June:
Used to determine food valuation 1. Inventory valuation as of June 1: $7,456
cost for the month 2. Add total purchases for the 2. Purchases for the month of June: + $10,914
month
3. Subtract ending inventory on the 30th - $9,002
3. Subtract ending inventory
Monthly Food Cost: $9,368
valuation

Monthly Food Cost 1. Record the monthly food June monthly food cost $9,368
Percent cost Sales for the month: $27,398
A percentage used to track 2. Divide by the sales for the Food cost % for June:
food costs and may be month (or the raw food cost
$9,368 ÷ $27,398 = .342 x 100 or 34.2%
used to determine meal PPD x number of clients)
prices

Turnover Rate 1. List the number of Turnover rate for 2015:

Used as a measure of employees who have left 1. 12 employees left the department in 2015
stability in the foodservice over a defined period of time
2. The total number of positions is 99
department 2. Divide this by the total
3. 12 ÷ 99 = .12 x 100 = 12%
number of positions you
have

Raw Food Cost (PPD) [(Monthly Food Cost June monthly food cost
Per Patient Day ÷ total days in the month) [($9,368 ÷ 30 days) ÷ 74 clients] = $4.22/day
Used as a financial ÷ total clients]
measurement for tracking
and benchmarking

Raw Food Cost Per Meal [(Monthly food cost from June monthly food cost:
The cost of the raw above ÷ ((the number of [$9,368 ÷ ((74 clients x 3 meals) x 30 days)] =
ingredients to produce a meals served in the month, for Cost Per Meal
meal example: the client count x 3 [$9,368 ÷ ((222 meals) x 30 days)] = Cost Per
meals a day x (30 days))] Meal
($9,368 ÷ 6,660 meals) = $1.41 Per Meal

Meals Per Labor Hour Total meals served ÷ total June meals:
Used as a measure of hours worked (Note: total meals 1. Regular meals = 6,660 meals
productivity and for served includes regular meals
2. Catered meals = 154
tracking and benchmarking plus any catering)
3. Total Meals: 6,660 + 154 = 6,814 meals
4. Use a total of 485 labor hours
5. 6,814 total meals ÷ 485 total labor hours =
14 Meals Per Labor Hour

502 Foodservice Management—By Design

 Management Math and Formulas
C
Management Math Formula Example

Labor Cost Per Meal Total labor costs ÷ total Using the example from above for total meals: (6,814)
Served meals served Total labor costs for June: $6,305
Used as a financial 6,305 ÷ 6,814 = $0.93/meal
measurement for tracking
and benchmarking
1. Current budget x
COLA Adjustment Proposed COLA is 3.4%. Current labor budget is
proposed cost of living
Calculating budget increase $78,650 per month.
adjustment percentage
for COLA (cost of living $78,650 x .034 = $2,674
adjustment) 2. Current budget +
figures from above $78,650 + $2,674 = $81,324 for next month that
= proposed budget includes adjustment for COLA
increase

Frequently Used Conversions

How to Calculate Cross multiply and divide Food cost % for June:
Percentages June monthly food cost $9,368 $27,398 = [(9,368 x 100) ÷ 27,398] = 34.2%
$9,368 ? 100
Sales for the month:
$27,398

Liter —> Ounces Quick conversions to keep 1 liter = 1,000 cc’s = 1,000 ml’s
Conversions in mind 30 ml = 1 oz.
240 ml = 8 oz. = 1 cup

How Many Ounces In: Quick conversions to keep 1 gallon = 128 oz.
in mind 1 gallon = 4 quarts = 16 cups
1 quart = 4 cups = 32 oz.
1 cup = 8 oz.

How Many Meat Portions Quick conversions to keep 1 lb. of raw meat = 16 oz.
in a Pound in mind A standard protein portion is 4 oz. raw or 3 oz.
cooked
1 lb. of meat = four portions

How Many Portions in a Quick conversions to keep A #10 can = 12-13 cups of product
#10 Can in mind A typical serving is 1/2 cup
A #10 can = approximately 25 - 1/2 cup servings

Calculate the Scoop Size Quick conversions to keep The scoop size is equal to the number of scoops in
in mind a quart (32 oz.)
There are eight half-cups in a quart (#8 scoop)
There are 12 one-third cups in a quart (#12 scoop)

Foodservice Management—By Design 503