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News in Review
Market Reports
Food Quiz
Industry Discussion
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Slow Day vs. Busy Day
By: Joe Dunbar
In my early days with Sodexho, I spent days in frigid Northern Alberta
analyzing costs at our largest North American project - Syncrude. If
you have a bundle of determination, a study of your slowest day vs.
your busiest day is a phenomenal exercise. Since I was specifically
paid to improve profits at our Syncrude project, this is where I began.
Slow
Day/Busy Day requires taking four inventories in one week for every
cost center. The time clock hours need to be available for each of the
two days as well. You need to know every employee's job title and
department.
Calculate the total sales, labor cost, food cost,
beverage cost, linen, paper, chemicals and other supplies. You won't be
able to analyze electric power, water, telephone, sewage, garbage
pickup, etc. Assume these costs are either fixed or 100% variable. I
prefer to let these costs vary with sales.
Start a spreadsheet
with all of these sales and expense categories as the left column. Feel
free to split labor into Management, Kitchen, Service and Office.
Include an estimate for burden (employer's FICA, FUTA, SUTA, Health
Care, 401K match, etc.) in your labor expenses. We always had our
burden cost available for each project. Make a column called BUSY and
another column called SLOW. Enter in all the data from your analysis.
The
next two columns are DIFF and VARIABLE. The values in the DIFF column
are the difference between BUSY and SLOW. In the VARIABLE column
express each value in the DIFF column as a percentage of the sales
total in the DIFF column. The VARIABLE percentages are your variable
costs as a percentage of sales.
The final column is FIXED. The
calculation is a bit trickier but still straight forward. Multiply the
sales in BUSY by the percentage in VARIABLE and subtract the result
from the BUSY value for the component. For example, if your busy day
sales were $10,000 and the variable labor cost is 21%, the variable
labor expense is $2,100 for the busy day. If the total labor cost for...
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"The grass is not greener on the other side of the fence. The grass is greener where you water it."
Mark Correll
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Advertisement
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View updated pricing and information each week on the website for the following food-commodity markets:
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Beef, Veal & Lamb |
View Detail |
The beef markets have remained surprisingly resilient during the past week bucking the seasonal tendency to move lower. Some downward movement is still expected to occur in the coming weeks for the middle meat markets. However, beef trimming and grinds prices could remain relatively inflated due to tempered beef imports and beef grind retail feature activity. Elevated feed prices may influence cattle slaughter weights below 2007 levels this summer which would be bearish for beef output. Prices per pound FOB from USDA.
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Dairy |
View Detail |
The CME cheese and nearby class III milk futures have weakened during the past week. Typically, the cheese markets move seasonally downward in the early summer. Last year the CME cheese block market fell $.22 from late June through July. Still, rising feed costs, output capacity issues and exports could cause CME cheese prices to trade above $1.90 for most if not all of this summer. The butter market is softening. April US butter (5 fold) and cheese (58%) exports were larger than last year. Prices per pound, except Class I Cream (hundred weight), from USDA.
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Poultry |
View Detail |
April US chicken exports were 42% larger than a year ago marking 2008 US chicken exports through the month 24% more than 2007. Strong chicken export trade with Russia (up 37%) and China/Hong Kong (41%) accounted for roughly 63% of the gain. A devalued US dollar, rising world protein demand and fairly tight world feed supplies should all help strong US chicken exports to persevere. All of this accompanied with domestic chicken cutbacks are likely to lead to record high leg quarter prices this summer. The chicken breast markets continue to move downward. Prices USDA, FOB per pound except eggs (dozen).
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Seafood |
View Detail |
April US shrimp imports were 1.1% less than a year ago. 2008 shrimp imports through April were 1.7% lower than 2007. A relatively depressed US dollar is expected to cause US shrimp imports to remain below prior year levels throughout this year. In turn, most shrimp markets should continue to trade above last years levels in the coming months. April US salmon filet/steak imports were 5% smaller than 2007. Prices for fresh product, unless noted per pound from Fisheries Market News.
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Pork |
View Detail |
US pork exports during April were 93% or 143.6 million pounds larger than the previous year. Aprils pork trade total was a record for any month. Can pork exports keep this up? The amount of export growth may slow this summer due in part to higher US prices but growth should continue which could be bullish for pork long term. April US ham exports to Mexico were up 66% from last year. Ham prices may remain above 2007 levels over the next few months. Prices per pound FOB from USDA.
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Produce |
View Detail |
As you probably know by now, the US Food and Drug Administration has recommended that consumers nationwide temporarily halt consumption of red tomatoes of various origins. Since April, there have been 145 cases of salmonella possibly caused from fresh red tomatoes. The tomato industry is distressed. Some Florida tomatoes are now approved for consumption and the Southeastern harvest is starting but overall demand recovery could be slow. The industry is awaiting further instructions from the FDA. Tomato prices may be relatively erratic this month. Prices shipping point unless noted (terminal) FOB from USDA
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Oil and Grains |
View Detail |
The corn and soybean markets are soaring higher due to recent crop damaging weather in the Midwest. The corn and soybean markets are attempting to ration demand. Prices per pound (oils) or bushel (grains) FOB from USDA.
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Canned and Frozen Food |
View Detail |
Tomato Products, Canned - The canned tomato markets remain firm. Demand could be erratic in the coming weeks due to spillover from the salmonella cases with fresh tomatoes. Still, inflated canned tomato prices are anticipated to persist. Price per case (6/10) FOB from Supply and Market Report.
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Processed Fruits and Vegetables - Recent heavy rains in the Midwest could deter upcoming acre yields for vegetable for processing crops. With existing stocks already tight and plantings limited, higher processed vegetable prices are likely this summer. Prices FOB per case from Supply and Market Report.
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Sales per Square Foot
Community member Ramis writes...
I was just reading an article that spoke about sales per sq foot. It
mentioned that most places should be around $400. I did my numbers and
realized that I am much below that. It doesn't bother me because i am
still happy with the outcome, but i was wondering am I alone, or are
other people also way below this "average"?...
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Fries. Made to Order or Warmer?
Community member McDermott's Pub writes...
Just curious if you guys fry your fries as they are ordered or do you
fry a batch and keep them under a lamp. The reason I ask is to start
with we will have limited fryers and I am worried we will get a little
overwhelmed. Our hood system is not large enough for more fryers and we
don't have it in the budget to get a new hood right now....
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Question To Ask Possible Hire
Community member Terri the lunch lady writes...
Hopefully this question is in the right "place". As most know I am
being given the chance to hire two new 4 hour workers. It will probably
never be more than 4 hours. The shift up for grabs is 7 am to 11 pm. I
already have the 9 am to 1 pm shift filled. I have been approached
everyday now or even called at home by people letting me know such and
such is applying for the job and they are excellent. I know all of them
by face as they all have kids enrolled...
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Our Elders Get Braised
Dating back to the forth century AD I was held in high regard by the Greeks and Romans for my medicinal properties. I am similar to spinach, but easier to prep and consume because my stems are edible. Often called a leaf beet, I am grown for my leaves, not my root. I come in many colors including white, red, green and even a rainbow variety, but we all turn the same darkish green when cooked. My hardy leaves keep better than spinach due to the lower levels of oxalic acid, which allows for better nutritional absorption. Our baby leaves are used in salads, while the elders get braised or steamed, and often served with lemon. Mixed with raisins, apples, pine nuts, lemon and cheese I create a traditional specialty of Nice of ten served on Christmas Eve called tourte de blettes. I will also find me combined with ham in quiche. Eaten raw, I am an excellent source of vitamins C and A. Cooked I become an excellent source of iron, copper, vitamins C, and B6. We are also used as a laxative and a diuretic. Although we share a first name, I am no relation to cheese.
What am I?
The Food Quiz has is brought to you by Culinary Specialty Produce, a specialty produce broker that scours the world for the very best in specialty produce. Contact them at 908-789-4700 or by sending an email to info@culinaryproduce.com.
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