Food service

retort pouches

retort pouches are flexible, laminated food packaging that can withstand high heat processing to sterilize the contents. They are commonly used for ready-to-eat foods and are designed to keep food safe from contamination, even in situations like flooding, as long as the pouch is intact and undamaged.

sentinel event

A sentinel event in foodservice is a serious, unexpected incident—such as a wet floor in a high-traffic area—that signals a major safety risk and requires immediate investigation and response to prevent harm.

hermetically sealed

Hermetically sealed means that the packaging is completely airtight, preventing any air, water, or microorganisms from entering and contaminating the contents. This type of seal is crucial for food safety, especially in emergencies or disasters, because it ensures the food inside remains safe to eat if the seal is not broken or damaged.

cost-plus purchasing

a method in which the buyer pays the vendor’s actual cost for the product plus an agreed-upon fixed markup or fee. For the RD exam, remember that price changes in this system are tied to the vendor’s documented costs, so increases are more likely to reflect true cost changes rather than arbitrary inflation above market value.

Market value of goods

the current competitive price an item would normally sell for in the marketplace based on supply, demand, and prevailing conditions. In this question, the key issue is whether price increases reflect true market conditions or are based mainly on the vendor’s internal costs or pricing practices.

Centralized purchasing

one department or office handles purchasing for the entire organization, rather than each unit buying independently. It is used to improve standardization, control, and efficiency, but it does not specifically describe how prices are set or whether they rise above market value.

Just-in-time purchasing

an inventory approach where goods are ordered to arrive only as they are needed, minimizing storage and inventory costs. For exam purposes, focus on its role in inventory efficiency and reduced holding costs, not on vendor pricing methods or long-term price inflation.

Prime vending

most vulnerable to price increases over time, not reflective of market value. The bulk of an organization's inventory is purchased from one vendor. Periodic audits are necessary to avoid this inflation of prices.

Prime cost method

1. Calculate labor cost:

2. Prime cost = raw food + labor

3. Total cost percentage = food % + labor %

4. Markup price factor =

5. Selling price = prime cost × markup factor

Food cost percentage method

The food cost percentage method for determining the selling price uses this equation:

Selling Price = Item Food Cost x Pricing Factor

• The food cost is $14.457

Next, the Pricing Factor is calculated with the following:

• Pricing factor = 100 / percent food cost

• Pricing factor = 100 / 40 = 2.5

Selling Price = $14.457 x 2.5 = $36.14

Labor cost and labor cost percentage are not used in this calculation, and are therefore extra information.

Factor method

Selling Price = Food Cost x Pricing Factor

Cost-benefit analysis

is a systematic approach used to evaluate the financial implications of a project or program by comparing the costs involved with the benefits derived, helping to determine if the intervention is financially worthwhile.

Cost-effectiveness study

An economic evaluation that compares two or more interventions that aim to achieve the same clinical/health outcome to determine which produces the outcome at the lowest cost (often expressed as cost per unit of outcome, e.g., $/mmol LDL reduced, $/QALY). It assumes the goal/outcome is worthwhile and focuses on relative “value” across options, not just total spending.