From our article in Foodservice.com
How easy life in the kitchen would be if all ingredients came ready to use with no trimming, waste, shrinkage or expansion to worry about.
AP (As Purchased) is how most items are bought. This is what you pay your vendors, and you need to price your menu to reflect these costs.
EP (Edible Portion) is what you have left after you prep the item. Some examples of AP/EP conversions include:
Your case of lettuce weighed 50 pounds when it arrived, after you cut off the outer leaves and core, you have 35 pounds left.
Your beef ribeye roast was 22 pounds when delivered, but after you cut off the extra fat, you had 19 pounds left.
Your raw turkey breast weighed 8 pounds before it went into the oven, now after it came out, it weighs 6 ½ pounds.
From your cooked turkey breast, you sliced 100 1-oz portions. Somehow, you “lost” 4 oz in the slicing.
What you’ve “lost” is your shrinkage.
With the correct shrinkage percentages you can easily calculate how much to buy for a certain number of customers. You can also use this information to cost out your recipes and menus accurately.
Calculating shrinkage for each recipe unit, you can manipulate your usage. For example, dicing fresh tomatoes means little waste, while slicing the same tomato would yield 60% usable product.
Accurate shrinkage can make or break your bottom line!
CostGuard can specifically calculate this shrinkage and the price change incurred by it:
and after taking 5% for shrinkage
9 cents may not seem like a lot. But over the course of a year it adds up.