BEVERAGE CONTROL

can be defined as a process used by managers to direct, regulate, and restrain

the actions of people so that the established goals of an enterprise may be achieved.

PURCHASE

RECEIVING

STORINGISSUING

PRODUCTION

• establishing standards and standard procedures,

• training staff to follow those standards and standard procedures,

• monitoring staff performance and comparing it with established standards,

• and taking remedial actions as needed

PURCHASE CONTROL

• The primary purposes of beverage purchasing controls are:

1. To maintain an appropriate supply of ingredients for producing beverage products

2. To ensure that the quality of ingredients purchased is appropriate for their intended use.

3. To ensure that ingredients are purchased at optimum prices As always, the key to successful control is to establish suitable standards and standard procedures.

• Establishing standards for beverage purchasing

For beverage purchasing, standards must be developed for:

1. Quality- call brands and pouring brands2. Quantity- perishability is not a critical factor

in establishing quantity standards for beverages.

3. Price

Quantity standards- The principal factors used to establish quantity standards for beverage purchasing are:

1. Frequency with which management chooses to place orders

2. Storage space available3. Funds available for inventory purchases4. Delivery schedules set by purveyors5. Minimum order requirements set by purveyors6. Price discounts for volume orders7. Price specials available8. Limited availability of some items

Standards for price-Control states and license states

Establishing standard procedure for Beverage purchasing

1. Determining order quantitiesPeriodic order methodPerpetual order method2. Processing ordersPurchase request formPurchase orders

Purchase request form

Purchase order form

PURCHASE ORDER MOVEMENT

PURCHASE ORDER

ORIGINAL - FIRM

STEWARD- TO CONFIRM

ORDER

RECEIVING CLERK

PURCHASING AGENT

RECEIVING

The primary goal of receiving control is to ensure that deliveries received conform exactly to orders placed. In practice, this means that beverage deliveries must be

compared with beverage orders in regard to quantity, quality, and price.

The standards established for receiving are quite simple.

1. The quantity of an item delivered must equal the quantity ordered.

2. The quality of an item delivered must the same as the quality ordered.

3. The price on the invoice for each item delivered should be the same as the price quoted or listed when the order was placed.

• Establishing Standard Procedures1. Maintain an up-to-date file of all beverage

orders placed.2. Remove the record of the order from the file

when a delivery arrives and compare it with the invoice presented by the delivery driver to verify that quantities, qualities, and prices on the invoice conform to the order. the picture illustrates a typical beverage invoice

INVOICE

3. Complete the following before the delivery driver leaves the premises.

• Check brands, dates, or both, as appropriate, to verify that the quality of beverages delivered conforms to the invoice.

• Count or weigh goods delivered to verify that the quantity received also conforms to the invoice.

4. Compare the invoice with the order to verify that goods received conform to the order placed.

5. Call to the attention of both management and the delivery driver:

• Any broken or leaking containers• Any bottles with broken seals or missing labels

6. Note all discrepancies between delivered goods and the invoice on the invoice itself.

7. Sign the original invoice to acknowledge receipt of the goods, and return the signed copy to the driver. Retain the duplicate copy for internal record keeping.

8. Record the invoice on the beverage receiving report.

9. Notify the person responsible for storing beverages that a delivery has been received.

BEVERAGE RECEIVING REPORT

THE CYCLE CONTINUES…………………..

Coming up STORINGISSUING

PRODUCTION

STORING CONTROL

Establishing StandardsStoring control is established in beverage

operations to achieve three important objectives:

1. To prevent pilferage2. To ensure accessibility when needed3. To preserve quality

• The following standards are critical to effective storing control:

1. To prevent pilferage, it is clearly necessary to make all beverage storage areas secure.

2. To ensure accessibility of products when needed, the storage facility must be organized so that each individual brand and product can be found quickly.

3. To maintain product quality, each item in the beverage inventory must be stored appropriately,

• Establishing Standard Procedures – PROCEDURE TO MAKE BEVERAGE AREAS SECURE

• Because beverage products are prone to theft, • There are two ways to maintain the necessary degree of

security. -assign responsibility -keep the beverage storage facility locked and to issue a single

key to one person,NOTE- SOLUTION TO PROBLEM to place a second key in a safe or

a similar secure location and require that anyone using it sign for it and write a short explanation of why it is needed

• installing closed-circuit television cameras • A security guard• to install special locks that print on paper tape

the times at which the doors on which they are installed are unlocked and relocked.

Procedures to Organize the Beverage Storage Facility• Ensuring accessibility means storing beverage

products in an organized manner, so that each stored item is always kept in the same place and thus can be found quickly when needed

• BIN CARDS- When properly used, bin cards include essential information (type of beverage, brand name, and bottle size, for example). They may also include an identification number for beverages. Some establishments assign a code number from a master list to each item in the beverage inventory and record that code number on the bin card.

BIN CARD

Procedures to Maximize Shelf Life of Stored Beverages

Procedures for maximizing the shelf life of stored beverages may be divided into two categories:

1. Those dealing with temperature, humidity, and light in the storage facilities

2. Those dealing with the manner in which bottles and other containers are handled and shelved

• Shelving and Handling Bottles and Other Containers

• There are special racks designed to store wines in the proper position.

ISSUING CONTROL

Establishing StandardsIssuing control is established in hotel and

restaurant beverage operations to achieve two important objectives:

1. To ensure the timely release of beverages from inventory in the needed quantities

2. To prevent the misuse of alcoholic beverages between release from inventory and delivery to the bar

Establishing Standard ProceduresTo ensure that the essential issuing standards

identified previously will be met, it is necessary to establish appropriate standard procedures for issuing beverages:

1. Establishing par stocks for bars2. Setting up a requisition system

Setting Up a Requisition System

PRODUCTION CONTROL

Objectives of beverage production controlControl over beverage production is established

to achieve two primary objectives:1. To ensure that all drinks are prepared

according to management’s specifications2. To guard against excessive costs that can

develop in the production process

Establishing Standards and Standard Procedures for Production

• Standards for quantities of equipment• For proportion of ingredients• Drink size must be standardized• Employees must be trained with these

standards

Establishing Quantity Standards and Standard Procedures

Devices for Measuring Standard QuantitiesA plain shot glass A lined shot glass The jiggerThe pourerAutomatic dispenserFree pourglassware

Establishing Quality Standards and Standard Procedures

Standard recipeIt should be clear that to control costs, one must

establish control over the ingredients that go into each drink, as well as over the proportions of the ingredients to one another. In other words, standard drink recipes must be established so that bar personnel will know the exact quantity of each ingredient to use in order to produce any given drink.

Establishing Standard Portion CostsStraight DrinksThe cost of straight drinks, served with or

without mixers, can be determined by first dividing the standard portion size in ounces into the number of ounces in the bottle to find the number of standard drinks contained in each bottle. This number is then divided into the cost of the bottle to find the standard cost of the drink.

Mixed Drinks and CocktailsIt is particularly important to determine the

standard costs of cocktails and other mixed drinks. These drinks, typically prepared from standard recipes, normally have several ingredients and may require two or more alcoholic beverages. Consequently, mixed drinks are usually more expensive to make than straight drinks. Knowledge of the cost per drink is important for making intelligent pricing decisions.

Standard recipe detail cost card picture

Standard cost and sales price

BAR FRAUDS

Frauds by customerCustomer walking without payingBringing foreign articleCustomer making unnecessary complaintsUsing false credit cardCounterfeit currency

• Thefts by waiter and waitress-Intentional omission of itemsReusing of checks-Over charging- Incorrect addition-Substitution- Falsification of tips or other charges-Incorrect change- Split rings-

Bar tenders fraud or errorsCashier theft or errorCashier keeps the money and pockets or destroys a check.Cashier changes the total of check after collection.Cashier bunches sales, split-rings, or under rings.Cashier gives uncorrected change.Cashier performs incorrect addition.Cashier falsifies payout or adds items to complimentary

checks and removes them from other checks.

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