FOOD COST CONTROL

Introduction

Food cost has a direct impact on a restaurants’ operating profit. Because no two operations are identical, it is necessary to calculate the food cost of your particular restaurant monthly. Industry averages cannot be used as an accurate standard.

The concept of food cost must be examined at several different levels in order to take into account any and all variables. For example, one variable is your menu sales mix. When one menu item sells better than another, there will be variances in your overall food cost and you should know how this affects your profits.

Hotel food business would show you how to improve your food cost and create a higher profit margin. This course demonstrates how to control costs before the food reaches the back door to when the guests are served. You will be shown how to cost recipes, price menu items, select the right suppliers, determine a monthly food cost, and much more.

You will receive 10 standard forms such as:

Standardize Recipe CostingMenu Item PricingQuotations for bidInventory SheetDaily Kitchen ReportMenu AnalysisDaily Prep Sheet

Food Cost Control also contains other forms that will help to organize your operation armed with this type of information you will be able to control food cost and move more profits to the bottom line.

Generating Daily Food CostPROCEDURE:

Food cost is generated by system by transferring sale from outlet and issues from stores.

Sales figures are automatically totaled for all the outlets in the system.

Issues are entered by the stores and are termed as food cost and even contains the cost of food consumed by staff cafeteria, A&G, bar snacks which actually need to be considered as part of beverage cost. Amenities served to guests.

Complimentary meals to guests etc.

These extra burden on issues need to be reduced to arrive at the actual cost of food consumed by the guests.Allowable deduction is given such as:

1. A & G / N.C. KOT: - sales price * cost price percentage.2. Staff cafeteria cost: - Number of staff * approved rate.3. Gratis to bar: - Bar snacks issued to outlet.—Taken out from the requisitions.4. Beverages: - Juices issued to bar.—Calculated from requisitions.5. Amenities: - Number of rooms occupied * approved rate of amenities.6. Complimentary B/F: - Number of guests having breakfast * cost of breakfast.7. Food Cost %:- Cost of food divided by the Net sale * 100

Cover analysis report of foodPROCEDURE:

Cover analysis is carried out on daily basis. This report is a system generated one. It shows the budgeted revenue and the covers of a day. The actual day’s revenue and the number of covers sold are

brought to the cover analysis format automatically by the system. This gives enough detail for an analysis from the variance arrived

between the budgeted and actual figures. It prompts for a management decision if required.

The Food and Beverage Cycle on which operations works

Work   hard   on your cost controls and be consistent aboutthem.   One   element   of controlling food cost covers all sevencategories:  thorough training. Give your staff the ability andknowledge and confidence to do their jobs properly and to yourspecifications. Inconsistency and failure to enforce procedures willdrive costs skyward.  Failure here is like throwing money away.

1. ORDERING - The first step is to order right.  Havingdetailed  recipes,  designing purchasing   specifications,   doingcomparative  shopping  based  on those  specifications,   andcomparing  quality,  price  and  service,  etc.   Oh yes, don’torder too early in order to avoid spoilage, wasted storage spaceand lost interest on your money.  Don't order too late, so premiumcosts and delivery charges accrue?  I remember being told standingorders were a bad habit.

2. RECEIVING - The fundamentals are obvious: count; weigh;  inspectfor condition and quality;  verify  against  the purchase order;  keep

PURCHASING

RECEIVING

STORING AND ISSUING

PRODUCTION

SERVICE

the receiving area clean and  uncluttered;  limit access  to  thereceiving area;  train the person receiving and make him or  herresponsible.   Get credit memos from the delivery driver.

3. STORING - Is the method and place of storage for the various itemsappropriate for the item?  Is it secure from pilferage?   Are theshelves strong enough for the product, allow air circulation andeasy to clean?   Are all items stored at a temperature appropriate forthat product? Are items dated (with year, in some cases) andpriced?   Is the storage area orderly and clean? Should shelves belabeled and maybe even stocking quantities noted?

4. ISSUING - What is issuing based on?  Who has access and orauthority to issue or take things from the secured store roomsand walk-ins?    Are issues being made in appropriate quantities and at appropriate times?   Is there a relationship to volume orreasonable par stocks?  Are issues being accounted for?   Is aperpetual inventory or sign out sheet designed specifically for youroperation or a particular store room in use?

5. PREPARATION - I'm not so clear about the details here any morebecause it has been a long time since I worked in a kitchenregularly.   Phrases that come to mind include:  trim properly; use trimmings for stock pots and other recipes.  Proper tools, sharpknives, clean and neat working area, enforcing a policy offollowing recipes, and having photos of finished products availableand used regularly are also critical.   Enough said, as I suspect myreaders know a lot more than I do about this!

6. COOKING - Various considerations here, again my readers know morethan I.  Proper temperatures, proper cooking times, followingrecipes carefully, using photographs of finished products, correctsize, material, and type of utensils and cookware, clean work area.

7. SERVING - Serving is not only about portion control, it is alsoabout decisions made regarding portion size and presentation.   Witha buffet, it is obvious. Proper serving utensils, properholding/serving equipment, right presentation order, plate sizes, etc. in a bar it’s easy, too.  Jiggers or other measuring and controldevices and very strict discipline.   I  take  it  back,  the

discipline  isn't  easy  especially  in tight labor markets.   Diningroom service should be easy to control using good kitchensupervisors, trained cooks, photographs for cooks and servers, etc.    Watch  what  comes  back  from  bused  tables  to  see  ifportions  are  proper.   Marketing decisions may drive largeportions but if the patrons are not eating it or taking it home, the portion size or the recipe should be reconsidered.   Proper chinafor each item served is important for both presentation and portioncontrol.

F&B Cycle of the Hotel RAMANASHREE BRUNTON

PURCHASE

RECEVING AND STORING

ACCOUNTS

ORDERING

ISSUING

PRODUCTION

SERVICE

Techniques used for Food Cost Control in HOTEL RAMANASHREE BRUNTON are:

Ordering the perishable items and dairy products daily. Thursday and Fridays, they have more orders and Business. They marinate most of the meat products to reduce the cooking time. They reduce the portion size in Ala cart. Purchase through credit purchase contract monthly basis. Cash purchase from METRO. They always keep limited Man Power Buy Meat products undressed and for continental section they order

cuts of meat products. Groceries order once in 15 days and maintain stock for 15 days. Food cost control by putting 25% to 35% profit in the menu price

excluding labor and expenses. The date tag is applied on all the perishable and groceries items after

receiving and before storing. The food preparation is reduced and Mise en Place will be ready

before the event. Production as per Booking and A la Carte Reuse food product if its hygienically allow to use in some other dish The inventory done once in a month for (Fish, Chicken and Meat). Try to reduce the meat products in the Banquets party by suggesting

the customer before taking the order and planning the menu. Always maintaining the Standard Recipes.

Their SPS (Standard Purchase Specification) are Chicken for tan door will be 700 gms 800gms each They order more chicken brest to for continental section The eggs will be of 70gms each Fish will come in fillets for continental and whole fish for Indian

section Butter and other cheese brand of amul

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