With the end to the recession we could expect food prices to start to fall. Unfortunately that is not the case.

If you are not keeping a very close eye on your ingredient costs now your profits will be suffering and you could be missing some great opportunities.

Food Prices at a 15 Month High

The FAO Food Price Index is now at a 15 month high. Sugar, dairy and oils drove growth in global food prices last month, while cereals and meat prices remained stagnant.

The international price for sugar continues to rise further than other food commodities. White sugar reached a new record, while continued concern about the balance of supply and demand drove ICE raw sugar futures to a 29-year high. The price of raw sugar futures more than doubled last year and analysts are forecasting even more increases.

Heat Drives Price of Fresh Produce Up

The heat wave is having a detrimental effect on the supply and therefore the price of herbs. The price of coriander and parsley have both risen by over 20% and dill is a whopping 94% more expensive in some cases.

Of the most commonly used ingredients, the price of Desiree Potatoes and Brown Onions have shown an increase of 20% or more.

Avocado and ginger are another two items that have experienced large price increases. Avocado is now 80% more expensive than at the same time last month and ginger is nearly 90%. Asparagus (49%), Red Cabbage (43%), Red Capsicum (68%), Continental Cucumber (50%), Banana (30%), Lemon (20%), Pawpaw (114%), Rockmelon (22%) and Cherries (60%) are all items that have become significantly more expensive.

Common faults in menu costing and pricing

1. Ingredient prices not up to date

All ingredients fluctuate in price; some more than others. Ingredient costs should be regularly checked and updated to reflect this. Last month the price of avocado increased by over 80%.

You don’t always have to increase your prices to account for increased ingredient costs. Some options are:

• Adjust your recipe to reduce the volume of this ingredient

• Supplement the ingredient with an alternative convenience food eg. Frozen avocado pulp

• Highlight and promote an alternative dish with better GP

2. Ingredient usable yields are not taken into account

Most ingredients have a yield. For example, when you prepare a head of cauliflower you lose 40% due to the stalks. If you don’t take this yield into account when calculating your selling price you would almost double your food cost

3. Costed ingredient weights different to actual

You may have a costing for 100 gram steak but if another chef is cutting them at 150 grams your costings would be 50% out. MenuCoster includes Recipe Cards and Order Lists. Some restaurants have reported remarkable improvements in their food cost just by using these tools to ensure ordering and preparation adhere to these printed documents.

This weeks best fruit buys

1. Limes
2. Black Grapes
3. Stone fruit (however the apricot season is coming to an end)

This weeks best vege buys

• Cauliflower
• Beans
• Broccoli
• Butternut