Food Cost Assignment – Make or Buy Decision

The Case Details

You are the National Director of Food & Beverage Operations for a high end steak house chain and the your supply chain has been disrupted by the pandemic. Due to labor shortages the cost of meat has increased dramatically. Fresh produce is not being harvested on time and there are not enough trucks to move dairy product across the country. In addition to the pandemic, climate changes have resulted in reduced growing conditions for russet potatoes, adding additional costs to frozen french fries. You are evaluating four critical items that are affected by these issues and need to conduct a make or buy analysis on three and a cost/quality evaluation on one: NY strip steaks, spinach, clarified butter and french fries. Each item is the number one product in its category:

Meats – New York Strip Steak – make or buy

Produce – Spinach – make or buy

Dairy – Clarified Butter – make or buy

Frozen – French Fries – cost/quality evaluation

INSTRUCTIONS:

Using the provided information and templates, you need to prepare a detailed 500 word minimum length report to present to the VP of Operations and the CEO. Be persuasive when making your case. The report will contain the following elements:

Prepare a make or buy analysis comparing pre-cut portion controlled NY Strip steaks vs. cutting them in house from a 0x1 Strip Loin.

Make or Buy Decision Analysis PC Steaks.docx Download Make or Buy Decision Analysis PC Steaks.docx

Prepare a make or buy analysis comparing frozen chopped spinach IQF (individually quick frozen) vs. cooking and chopping fresh spinach

Make or Buy Decision Analysis Chopped Spinach.docx Download Make or Buy Decision Analysis Chopped Spinach.docx

Prepare a make or buy analysis comparing RTU (ready to use) clarified butter vs. clarifying whole butter

Make or Buy Decision Analysis Clarified Butter.docx Download Make or Buy Decision Analysis Clarified Butter.docx

Prepare a portion cost analysis of the current cut of french fries compared to a new french fry suggested by a manufacturer representative.

Cost-quality Decision Analysis French Fries.docx Download Cost-quality Decision Analysis French Fries.docx

Write a detailed report summarizing the results of the comparative evaluations and your product recommendations.

Attach all four of the completed product evaluation templates.

The product recommendations must include an informal product specification.

Submit as one Word document to this portal.

Instructor led evaluations will be held in the RCHM food labs.

Here is the sample French Fry costing sheet