Question 1

What is a typical PPD for a senior living community?

Accepted Answer

PPD can vary widely based on the level of care, geographic location, and type of community. However, a general industry range is often between $25 and $45. Independent living is typically on the lower end, while high-end assisted living or memory care with specialized diets will be on the higher end.

Question 2

How is PPD different from food cost per resident?

Accepted Answer

Food cost is just one component of PPD. PPD is a more comprehensive metric because it also includes the significant costs of labor (chefs, servers, dishwashers) and supplies (cleaning chemicals, napkins, etc.), giving a much truer picture of the total cost of the dining program.

Question 3

What are the biggest drivers of high PPD?

Accepted Answer

The two biggest drivers are almost always food costs and labor costs. High food costs can be due to waste, expensive ingredients, or poor portion control. High labor costs can result from inefficient scheduling, high overtime, or a high staff-to-resident ratio.

Question 4

How can I lower my PPD without sacrificing quality?

Accepted Answer

Focus on efficiency. Implement a waste tracking system to identify what's being thrown away. Use a menu engineering approach to promote high-profit, popular items. Optimize staff schedules to match peak dining times. Consolidate orders with suppliers to gain purchasing power.

Question 5

Should I calculate PPD for each care level separately?

Accepted Answer

For the most detailed analysis, yes. If you can separate the food and labor costs for your different wings (e.g., assisted living vs. memory care), you can calculate a more precise PPD for each. This can reveal cross-subsidies, where one efficient area is covering for an inefficient one.

Dining Services Cost Per Resident

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Understanding Dining PPD

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