What are Cut Tests?
Cut Tests measure the pounds of retail cuts, fat, bone, and shrink resulting from cutting whole meat, poultry, and fish products into consumer cuts. The yield percent values are the pounds of cut, fat, bone, and shrink as a percent-of-the whole pounds. Retail values can be applied to yield percentages so bottom-line gross margins can be calculated, and the profitability of whole products can be quantified.
An extensive cut test program will designate cut tests for each supplier’s whole items, so yield and cost evaluations can be made by supplier. A properly managed cut test program requires ongoing updates to pounds, so percentages are current that provide accurate benchmarks.
The key advantage of maintaining a cut test program is to have benchmarks so management can evaluate suppliers, cost, labor, and overall profitability. Cut tests provide the financial information needed to manage random-weight meat, poultry, and fish cuts.