Sample result
Recipe Cost Variance Analyzer for Restaurants
The owner asked this:«My sancocho cost 15,900 in March and now it comes out at 16,400. That is 500 pesos, almost nothing, but the month's food cost moved more than that explains. I want to know what happened underneath.»
① The 500 COP that turned out to be 2,490
Same recipe and same declared portion weight at the main Medellín location, two cuts: March 12 and August 12. Materiality threshold declared by the house before looking: 150 COP per line.
| Line | March cost | August cost | Variance | Price effect | Quantity effect | Cause |
|---|---|---|---|---|---|---|
| Beef rib | 2,640 | 3,480 | +840 | 0 | +840 | Measured yield |
| Three-meat stock | 2,905 | 3,400 | +495 | +495 | 0 | Sub-recipe |
| Chicken leg | 1,380 | 1,540 | +160 | +160 | 0 | Supplier price |
| Avocado | 1,596 | 1,330 | −266 | −266 | 0 | Seasonal price |
| Corn on the cob | 1,200 | 880 | −320 | −320 | 0 | Supplier substitution |
| Pork loin | 1,850 | 1,580 | −270 | 0 | −270 | Portion weight |
| Remaining lines | 4,329 | 4,190 | −139 | −139 | 0 | Movements below threshold |
| Portion total | 15,900 | 16,400 | +500 |
Net variance 500 COP. Gross variance 2,490 COP. Five times more movement than the total let you see. Illustrative figures for this case.
② The two lines to look at, and they are not the ones that rose
Grouped by cause, with an owner. Across 880 sancochos a month:
| Cause | Effect on the dish | Effect for the month | Who answers | Reading |
|---|---|---|---|---|
| Measured yield | +840 | +739,200 | Kitchen | Not an increase: the card used to cost at purchase weight |
| Sub-recipe (stock) | +495 | +435,600 | Purchasing | The meaty bone rose, and it drags 5 other dishes |
| Supplier price | −245 | −215,600 | Purchasing | Seasonal avocado and minor adjustments |
| Supplier substitution | −320 | −281,600 | Purchasing | Corn from another supplier, and quality needs testing |
| Portion weight | −270 | −237,600 | Kitchen | Pork portion trimmed from 100 g to 85 g without authorization |
Two uncomfortable conclusions. First: the +840 is not inflation, it is the old card lying; that money had been leaving for months with no line to show it. Second, and this is tomorrow's job: the −270 is a cost drop nobody should celebrate. Somebody trimmed 15 g of pork off the dish most ordered on Sundays, and the guest who comes back does notice, however much better the paper looks.
And a concession: the corn dropped 320 COP through a supplier change. Before taking that saving as good the product needs two weeks of testing, because a purchase saving that lowers quality comes back through the till.
The full example has 1 more part(s): you see them inside the library, with your account.