Total Cost Per Meal Calculation - NANASP

6/2/2015Total Cost per MealCalculationPresented by Holly Greuling, RDNAdministration for Community LivingAt the end of this webinar you will be ableto answer the following questions: What is the Total Cost Per Meal? Why should I want to calculate Total Cost per Meal? How do I calculate Total Cost per Meal? When should I calculate my Total Cost per Meal?Important Terms Raw Food Cost––– Labor Cost–––– You are paying someone to prepare the food, serve the food, and clean up after the food.Staff benefits, to include sick leave, vacation, etc.Generally, labor cost should be around 25-35%Generally calculated per mealOther Cost––– How much it costs to buy the foodGenerally, food cost should be around 30-35%Generally calculated per mealThe cost of plates, cups, napkins, utensils, detergent, hair nets, etc.The cost of the electricity, water, maintenance necessary to for the buildingGenerally calculated per mealTotal Cost Per Meal––Refers to the total cost of a served meal. The total cost includes all of the above into the calculation.It may seem like your total cost per meal is a lot more than necessary, but keep in mind that the total mealcost is more than just the food itself.1

6/2/2015Let us discuss the following situationsExpense: Someone left the heater on80 all weekend while thecenter was closed. The cost of milk has gone up. Sally is taking a vacation nextweek and Cynthia will have towork overtime. Participants do not like thegreen beans and always throwthem away instead of eatingthem.Which cost is effect by theexpense described? Food Cost Other Cost Labor CostWhich of these costsaffect the Total Cost of aMeal?Listen in on this conversation between two meal providers I am so excited, I justfigured out that my lastmonth’s meal costs were 2.50Really? Somethingmust be wrong with myagency because my totalcost per meal for lastmonth was 7.52You don’t have to do this, to calculate yourTotal cost per meal!2

6/2/2015Use This!Worksheet Overview Raw Food Cost Worksheet Labor Cost Worksheet Other Cost WorksheetWorksheet Section Raw Food Cost– Number of meals served for the month– Total Inventory Value Must keep a record of the value of food on hand Suggest keeping a cost per unit right on the product or onthe shelf, to ease monthly inventory– Total Food Purchases If food and non food are obtained from the same grocerthen put those costs either under raw food cost or underother cost. Either way is ok, just be sure to always do it thatway in the future.3

6/2/2015RAW FOOD COST WORKSHEETCalculates the raw food cost per meal.RAW FOOD COST WORKSHEETTotal Meals:Add the month’s “dailymeal count “ togetherand record the monthlytotal for each meal typeserved.RAW FOOD COST WORKSHEETFood Cost:Beginning Inventory: Lastmonth’s closing inventory.Total purchases: add allfood receipts for themonth .Closing Inventory: whatthe value of yourinventory is on the lastday of the month.4

6/2/2015To ease end of the month inventory, try this:50 When receiving items,either write the unitcost on the can, or theshelf. This will ease endof the month inventory.RAW FOOD COST WORKSHEETNet Meal Cost: equalsraw food cost per meal.Worksheet Section Labor Cost Per Day– Employee Hours per day Assumes that employees are working every day. Might have to average month’s worth of information and thenfigure it out by day.– Cost of Salary and Benefits Record benefits and salary for each employee.– Net Labor Cost Calculates the labor cost per meal.5

6/2/2015LABOR COST WORKSHEETCalculate the costof labor per mealserved.LABOR COST WORKSHEETEmployee Hours per day:Assumes employees workthe same hours every day.May need to edit it if yourschedules are notstandard.LABOR COST WORKSHEETSalary & Benefits:Assumes employees workthe same hours every day.May need to edit it if yourschedules are notstandard .6

6/2/2015LABOR COST WORKSHEETTotal Labor Cost perDay: How much is costfor your employees.Don’t forget to listmanagers andadministrators too.LABOR COST WORKSHEETCalculate the cost oflabor per meal served.Worksheet Section Other Cost Per Day– Daily Expenses Monthly cost associated with having a facility Might want to list non food products here, or under food expenses(but not both)– Total Daily Expenses per month If bills are exactly on a monthly cycle then just start withmost recent bill (ex. If electric bill’s cycle starts on the 15 th ofthe month, then start with a given month, and follow thecycle)7

6/2/2015OTHER COST WORKSHEETMonthly ExpensesList individual monthly billamounts.Total of all expensesOTHER COST WORKSHEETOther costper mealcalculationTaa Daa!The finalcalculationWhen to Calculate Total Cost Per Meal When you anticipate you will not have enough money toserve everyone! When you want to figure out how you can improve yourbudget. When you want to explain how your program’s budgetworks to others, such as participants, program sponsors orElders. When you need to charge guests for a meal. When you want to offer your meals to paying customers.8

6/2/2015Be aninformedprogrammanager!Know yourTotal Cost PerMeal PerMonth!Total Cost of Meal CalculationEXCEL VERSIONComplete onlythe yellowhighlightedsections. Theformautomaticallycompletes therest of thedocument.9

6/2/2015Net Meal Cost (or total cost of meal)Total Cost of Meal WorksheetMonthOperating Days for month:InventoryFood Cost Calculationtotal number of mealsserved in the monthEligible Congregate MealsEligible HDM MealsStaff MealsVolunteers MealGuests MealsTotal number of meals served 0Beginning InventoryAdd Total PurchasesSubtract Closing InventoryTotal monthly cost of foodWhat percent of thismonth's total meal cost isrelated to food? -FOOD COST PER MEAL#DIV/0!#DIV/0!Labor Costhours per dayhourly rate benefitsEmployee informationLabor Cost Calculationemployee namedays/mnmonthlyemployee cost0 -00 -0 -00 - -Total monthly cost of labor What percent of this month'stotal meal cost is related tostaff?LABOR COST PER MEAL#DIV/0!#DIV/0!Other CostCost of doing businessOther Cost Total monthly cost of otherOTHER COST PER MEAL 0.00#DIV/0!What percent of this month'stotal meal cost is related toother? #DIV/0!10

6/2/2015Total Cost Per MonthTHIS MONTH'S TOTAL COST PER MEAL (TCM)#DIV/0! Type inmonthType in totalnumber ofOperatingDays thatmonth11

6/2/2015The formautomatically fills inthe staff’s days permonth.You can change thisnumber if it isn’taccurate.Type in thenumber ofmeals you servethis month.Total number ofmeals served isautomaticallycalculated foryou.12

6/2/2015Add Inventory.Your food costper meal iscalculated.Add Labor hoursand benefits.The following areautomaticallycalculated for you:monthly employeecost andlabor cost per meal.Add other costs.The following areautomaticallycalculated for you:total monthly costand other cost permeal.13

6/2/2015Blue boxes:Automaticallycalculate whatpercent of yourtotal meal costis due to food,labor or other.Tada:Thismonth’stotal costper meal iscalculated.When to Calculate Total Cost Per Meal When you anticipate you will not have enough money toserve everyone! When you want to figure out how you can improve yourbudget. When you want to explain how your program’s budgetworks to others, such as participants, program sponsors orElders. When you need to charge guests for a meal. When you want to be an informed manager.14

6/2/2015Which of these program managers know their Total Meal Cost?I am so excited, I justfigured out that my lastmonth’s meal costs were 2.50Really? Somethingmust be wrong with myagency because my totalcost per meal for lastmonth was 7.52Be aninformedprogrammanager!Know yourTotal Cost PerMeal PerMonth!Thank you for your active participation!For more information about ACLU.S. Department of Health and Human Services, Administration for Community Living, Washington DC 20201Phone: (202) 357.0145 Email: Holly.Greuling@acl.hhs.gov15

Labor Cost Per Day –Employee Hours per day Assumes that employees are working every day. Might have to average month’s worth of information and then figure it out by day. –Cost of Salary and Benefits Record benefits and salary for each employee. –Net Labor C