Food service operation

requires following

 Money,
 Materials,
 equipments,
 personnel.
 The objectives
1.Analysis of income and
expenditure
2.Establishment and maintenance
of standards
3.  Pricing
4.  Prevention of waste
5.  Prevention of fraud
6. Information
 Special Problems Of
F &B Control
 1 The perishability of produce
 2 The unpredictability of the
volume of business
 3 The unpredictability of the
menu mix.
 4 The short cycle of catering
operations
 5 Departmentalization.
Definition of Control
         Establish standards
         Measure the performance
         Note the deviation
         Take corrective action
 Considerations in
designing a control
system
1. Accuracy:
2.  Timeliness:
3.  Objectivity:
4.  Consistency:
5. Priority:
6. Cost:
 Considerations
 7. Realism:
 8. Appropriateness:
 9. Flexibility:
 10.Specificity:
 11. Acceptability:
WHO IS RESPONSIBLE FOR
CONTROL
 Owner
 General manager
 Food and beverage manager
 Accounting department
 Chef
 Purchasing agent
 All employees
 Basic Policies
Financial Policy Marketing Policy

Caterin
g Policy

Operating Budgets Capital Budgets

Food and beverage sales Fixed/ heavy

Cost of food and equipments
beverage Small plant
Cash
Cost of labour
Cost of overheads

Master Budgets

Trading Account
Profit and loss account
Balance sheet
 The Management Process:
Planning
 develops goals and objectives
 creates action plans to attain the goals and
objectives
 to accomplish this a manager must have...
 accurate information
 good communication
 flexibility
 an implementation plan
 The Management Process
Organizing
 establishes the flow of authority and
communication within the organization
 empowerment

Coordinating
 the task of assigning work
 organizing people and resources to achieve goals
and objectives
 delegation
 The Management Process
Staffing
 recruitment and hiring of highly qualified
workers

Directing
 supervising, scheduling, and disciplining

Controlling
 developing and implementing control systems
 The Management Process
Evaluating
 measuring progress to a goal
 comparing the measurement to a predetermined
standard

 determining if corrective action is needed

 implementing change
 evaluating the effectiveness of the change
 Basic Policies
 Financial Policies

 The marketing policy

 The catering policy

 Financial Policy
 To determine levels of profit, costs,
 From various operations
 To determine level of subsidy and
contribution margin from various
operations
 To set targets for the departments
 Marketing Policy
 The marketing policy
 will identify the broad market
the operation is intended to
serve and the particular
segment(s) of the market upon
which it intends to concentrate.
 To identify the immediate and
future consumer requirements on a
in order to maintain and improve
business performance.
 Marketing Policy
 National identity
 Profile of guest
 Market Share
 Turn over
 Profitability
 Average sprnding power
 Satisfaction levels
 Product
 Catering Policy
 Type of customer: Age etc
 Type of menu
 Beverage requirement
 Food quality standards
 Methods of Purchasing
 Type and quality of service
 Hours of Operation
 Décor, comfort levels etc
 Control Phases
 Planning and Pre control

 Operational Control

 Control after the event

FOOD AND BEVERAGE
CONTROL CYCLE
 Purchasing

receiving
Service

Menu
Production Storing

Issuing
 The Menu's Influence:

 menu planning is a dynamic, ongoing

activity
 stimulate revenues and increase guest check
averages
 sales, merchandising, and marketing tool --
it reflects the image of the restaurant
 Planning, organising., coordination, staffing,directing, controlling, evaluating

Marketing Plan and Strategies

Menu

Equipments Other
Products Personnel Energy
Lay out Resources
O O
P P
E E
R R
A Personnel A
T Purchasing Production Administration T
I Receiving delivery systems I
N Training N
G G

C
O
Storing C
O
N Issuing Preventive N
T T
R Maintenance
R
O O
L Production L
Service

Accounting and record keeping systems

 Menu Impact
1. Product requirements and
control procedures
2.  Cost control procedures
3.  Production requirements
4.  Equipment needs
5.  Sanitation requirements
 
 Menu Impact
6.Layout-space requirements
7.Staffing needs
8.Service-style
requirements
9.Sales-income-
controlprocedures
 Menu Planning
 marketing implications
 the menu communicates the operation's marketing
plans

 theme and atmosphere (ambiance)

 the complexity of the menu planning process
depends on the ambiance of the operation
 menu planning strategies
 diversify by adding new menu items
 increases the number and variety of
ingredients
 rationalization ==> limits the menu to only
those items that enhance the operation's
image
 cross utilize ingredients
 Menu Planning
building the menu
 entrees typically selected first
 need to consider cost, preparation methods, and
compatibility with ambiance
 next plan appetizers and soups
 then starch items, vegetables, and salads
 finally breads, beverages, and desserts
 Menu Planning
 dining trends
 grazing -- choosing a variety of appetizers,
soups, salads, and desserts rather than an
entree
 menu variability -- especially important
when clientele is highly repetitive
menu design

single sheet menu

single fold menu

two fold menu

 menu changes
 external factors
 consumer demand
 economic conditions
 the competition
 suppliers and ingredient variety
 industry trends
 menu changes
 internal factors
 operation's meal patterns
 concept and theme
 operation system
 menu mix
 Calculating Menu Selling Prices

1) Subjective Pricing –
 based on assumptions, hunches, and guesses
the reasonable price method -- what would the
guest pay?
 highest price method  -- what is the highest price
the guest would pay?
 loss leader method -- very low price for one item
stimulates purchase of additional items
 intuitive method --  gut feel
 Calculating Menu Selling Prices
1. Simple Mark-Up Pricing
 use the following mark-up formula to determine
an item's menu price...
              item plate cost
menu price = -----------------
                desired FC%
                                
                 
 menu price = (item plate cost) x
multiplier  
 Calculating Menu Selling Prices

 variations include:
 prime-ingredient mark-up
(need a higher multiplier
since only counting the cost
of the main ingredient)
 Calculating Menu Selling Prices
1. Contribution Margin Pricing
 involves a 2-step process
1. determine the the average CM required per
guest...
                       
1. non-food costs + required profit
average CM\ guest = -------------------------
                    number of expected guests

2. determine the base menu selling price...

menu price = (item plate cost) + (average CM per
guest)
 Calculating Menu Selling Prices
1. Ratio Pricing
 involves a 3-step process
1. determine the ratio of food costs to all other
costs plus required profit
   (all non-food costs) + (required profit)
ratio = -----------------------------------------
                       food costs

2. calculate the amount of non-food costs plus

required profit for the menu item
non-food costs plus desired profit = (item plate
cost) x (ratio)
3. determine the base menu selling price...
menu selling price =(non-food cost plus profit) +
(item plate cost)
 Calculating Menu Selling Prices
1. Simple Prime Cost Pricing : involves a 3-step process
2. determine the labor cost per guest...
                        labor costs
labor cost per guest =
---------------------                   
number of expected guests

3. determine the prime cost per guest...

prime cost per guest = (labor cost per guest)
+ (item plate cost)

4. determine the menu item's base selling price...

              prime cost per guest
menu price = ----------------------
              desired prime cost %
 Calculating Menu Selling Prices
1. Specific Prime Cost Pricing
 develop multipliers for menu items so that the menu
selling price covers plate costs and their fair share of
labor costs
 the first step is to divide the menu items into 2 categories
1. those that require extensive labor preparation
2. those that do not require extensive labor preparation
 determine appropriate food and labor cost percentages
based on the categories above

 menu price is determined by taking the item plate and

labor costs and multiplying by the appropriate multipliers
 Menu Engineering
1. looks at a menu item's popularity and profitability
 need 3 pieces of information to perform this analysis
1. the selling price of the item
2. the quantity sold of each item for a specified period
3. the plate cost for each menu item
 determine if a menu item's popularity and profitability is either high or low
 the cutoff for popularity is determined by the following...
                             1
popularity cutoff = ---------------------- x 70%
                     number of menu items

 the profitability cutoff is determined by calculating the average contribution

margin...
                      total CM
average CM = ----------------------------
              total number of items sold
 Menu Engineering
 menu analysis classifies each menu item into
one of the following four categories

 dog >  low popularity and low profitability

 star >  high popularity and high profitability
 puzzle >  low popularity , high profitability
 plowhorse=high popularity,low profitability
 Menu Engineering
 strategies for each menu item are developed based
on 2 criteria:

1. which category the menu item falls into and

2. where exactly in the category the menu item
falls
 Developing F&B Standards
 Standards:

 are levels of expected performance

 help identify variances
 the more specific the standard the more
time needed to develop and monitor
 Pre control

1. Standard recipes
2. StandardPurchase Specifications
3. Standard yields
4. Standard portion sizes
5.  Standard portions costs
 Standardized Recipes
 are used for consistency and portion control
 contain the following pieces of information
1. ingredients and required quantities of each
2. preparation instructions
3. equipment needed to prepare
4. cooking times and temperatures

5. portion size and portioning equipment

6. yield
 Advantages of
following a Standard
recipe.
 1.  Consistency:
 2.  Yield calculations:
 3.  Requirement of equipment:
 4.  Time management:
 Advantages of
following a Standard
recipe.
 5.Indenting and receiving
 6.Supervision
 7.Non-availability of personnel
 8.Potential Cost
 Developing a standard
Recipe:
 Decide on desired yield
required from the recipe
 List the ingredients in order
of use:
 Decide the way of measuring
ingredients
 Developing a std. recipe
 The use of utensils
 Step by step method
 Time and Temperatures
 Provide direction for presentation,
portioning
 Documentation with photograph
 Training to staff
 Purchase Specifications:
 based on menu requirements and pricing policies
give a concise description of the following product
features:
1. quality
2. size

3. weight
4. count
5. yield
used to compare similar products from competing
vendors
 Product test and
Kitchen test
 FRUIT AND VEGETABLES
Count and weight
 Waste/ peel, thickness of peel
 Shape
 Colour
 Firmness
 Smell
 Taste
 Product test
 CANNED ITEMS

          Drained weight

          Density for juices
          Colour
          Taste
          Appearance
          No. of portions
 BUTCHERY TEST
or Yield Test
•
   
      

•Waste
•   Yield /usable meat
•   Bones
•  Feel to touch
•  Firmness of flesh
•  Colour of flesh
•  Bone structure, colour of
bones
COOKING TESTS:
          Cooking time
          Cooking losses
          Taste after cooking
          Appearance after cooking
          Flavour after cooking
          Shrinkage factor
          Storing factors
          Reheating factors
 
HOTEL ABC
STANDARD PURCHASE SPECIFICATIONS
NAME OF PRODUCT___________________________
INTENDED USE ______________________________
GRADE/ QUALITY ____________________________
UNIT ________________ PRICE PER UNIT ________
AVAILABILITY: SEASONAL/ ALL YEAR ROUND

APPEARANCE:______________________________________
TEXTURE: _________________________________________
COLOUR __________________________________________
FLAVOUR _________________________________________
PACKING __________________________________________
SIZE AND SHAPE ____________________________________
NO. PER KG __________________
ANY OTHER REQUIREMENT __________________________
 

 
SIGNATURE OF S & P OFFICER DATE
 
HOTEL ABC
STANDARD PURCHASE SPECIFICATIONS
NAME OF PRODUCT: Tomatoes
INTENDED USE For Salads
GRADE/ QUALITY Grade A
UNIT : kg PRICE PER UNIT Rs. 6.50/ kg
AVAILABILITY: ALL YEAR ROUND

 
APPEARANCE: Shining, Free from spots, bruises, dirt
TEXTURE: Firm
COLOUR : Bright Red
FLAVOUR Ripe flavour (Free from overriped smell).
PACKING to be packed in corrugated boxes of 5 kg
SIZE AND SHAPE Round or oblong
NO. PER KG 5-6 in a kg
 
ANY OTHER REQUIREMENT : Should be transferred in to
different trays in front of the receiving personnel.
 

 
SIGNATURE OF S & P OFFICER DATE
 Standard yield
 yield means the net weight-
volume of a food item after it
has been processed and made ready
for consumption of guest.
 production loss.
 There are three steps:
Preparation, cooking holding and
portioning. The loss can occur in
any or all of these steps.
 Standard Yield
 Standard yield results when
an item is produced according
to established standard
production procedures
outlined in the standard
recipe. They serve as a base
against which to compare
actual yields.
 YIELD CARD
SR. NO. DATE SUPPLIER GODREJ
 
NAME OF PRODUCT: BR. CHICKEN GRADE : A RATE 60.00 KG
 
       
RATE AMOUNT % COST
FACTOR

A.P. BROILER CHICKEN WITH 1 KG 60.00 60.00 100 %  

  SKIN        
        85 %  
  BROILER CHICKEN W/ OUT 850 70.58   1.17
  SKIN GMS      
           
  WEIGHT OF LEGS AND 450 133.00 45% 2.21
  BREASTS GMS      
           
R.T.C. BONELESS CHICKEN 350 171.00 40 % 2.80
    GMS      
R.T.S. CHICKEN TIKKA 300 199.00 33% 3.33
  GMS

  NO OF PORTIONS 2        

  COST PER PORTION 30.00        

  SELLING PRICE 180.00        

  COST % 16.6 %        
 Standard Portions
 Decided before actual operation
 Expressed in weight, number,scoops,slices etc
 Standard portion size brings in
the consistency in product
 Helps maintain std costs
 Tools for std portions:
ladles,spoons,sauce boats,scoops
 Standard Portion Sizes

advantages...
 portion costs are known and consistent
 guests always receive the same value
(remember, value is the relationship between
price and quality)
Encourages to make use of portion control
tools
 STANDARD PORTION COSTS

 Combination of std recipe and std portion

sizes
 Recipe gives a cost figure at a particular
yield
 total recipe cost
standard portion cost = ----------
                     number of portions

 Standard costs and Actual costs

 The Purchasing Cycle:  An Audit
Trail

1. An F&B department needs something  (e.g., food items,

beverage items, wine glasses, menus, salt shakers, etc.)
 a requisition form is created

2 Purchasing Department is notified

 check to see if product is in stock
 if product is not in stock need to decide on a supplier to
purchase from
 this creates a purchase requisition form
 An Audit Trail
3 Contact a supplier
 a purchase order form is created

4 Supplier sends items requested

 supplier generates an invoice

5 Receiving checks items sent by supplier

 receiving creates a daily receiving report

6 Items are moved wither into the storeroom or directly to

production
7 Accounting collects copies of all of the above control
documents
 when Accounting determines the bill from the supplier is
legitimate, a check is issued to pay the supplier for the
product ordered and delivered
 Purchasing Objectives:

 based on the 5 rights  --  an F&B operation should

always purchase the...

1. right product at the

2. right quality in the

3. right quantity at the

4. right price from the

5. right source.
 Purchasing
Responsibilities:
 generally the domain of the food and beverage
manager
 in smaller operations often done by the general
manager or owner
 large operations may have a position entitled,
purchasing agent
 Selecting Suppliers:
1. location

2. quality of the supplier's operation -

sanitation, handling of orders quickly and
reliably, size of stock

3. technical ability of the supplier's staff - do

they know their stuff; can they help you
solve problems
 Selecting Suppliers
4 value - relationship between price and quality

5 compatibility

6 honesty and fairness

7 delivery personnel - appearance, attitude, and

courtesy