Food service operation Food service operation requires following requires following
Money,Materials,equipments, personnel.
The objectivesThe objectives
1.Analysis of income and expenditure
2.Establishment and maintenance of standards
3. Pricing4. Prevention of waste5. Prevention of fraud6. Information
Special Problems Of Special Problems Of F &B Control F &B Control
1 The perishability of produce2 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 ControlDefinition of Control
Establish standards
Measure the performance
Note the deviation
Take corrective action
Considerations in Considerations in designing a control designing a control
systemsystem 1. Accuracy:
2. Timeliness:
3. Objectivity:
4. Consistency:
5. Priority:
6. Cost:
ConsiderationsConsiderations
7. Realism: 8. Appropriateness: 9. Flexibility: 10.Specificity: 11. Acceptability:
WHO IS RESPONSIBLE FOR WHO IS RESPONSIBLE FOR CONTROLCONTROL
Owner General manager Food and beverage manager Accounting department Chef Purchasing agent All employees
Financial Policy Marketing Policy
Catering Policy
Basic PoliciesBasic Policies
Operating Budgets
Food and beverage salesCost of food and beverageCost of labourCost of overheads
Capital Budgets
Fixed/ heavy equipmentsSmall plantCash
Master Budgets
Trading AccountProfit and loss accountBalance sheet
The Management Process: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 ProcessThe Management ProcessOrganizing 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 ProcessThe Management ProcessStaffing recruitment and hiring of highly qualified
workers
Directing supervising, scheduling, and disciplining
Controlling developing and implementing control systems
The Management ProcessThe Management ProcessEvaluating 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 PoliciesBasic Policies
Financial Policies
The marketing policy
The catering policy
Financial PolicyFinancial Policy
To determine levels of profit, costs,From various operationsTo determine level of subsidy and
contribution margin from various operations
To set targets for the departments
Marketing PolicyMarketing 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 PolicyMarketing PolicyNational identity Profile of guestMarket ShareTurn overProfitabilityAverage sprnding powerSatisfaction levelsProduct
Catering PolicyCatering 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 PhasesControl Phases
Planning and Pre control
Operational Control
Control after the event
FOOD AND BEVERAGE FOOD AND BEVERAGE CONTROL CYCLECONTROL CYCLE
Purchasing
receiving
Issuing
Storing
Service
Production
Menu
The Menu's Influence: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
Marketing Plan and Strategies
Menu
Products
PurchasingReceiving
StoringIssuing
ProductionService
EquipmentsLay out
Production delivery systems
Preventive Maintenance
Personnel
Personnel Administration
Training
EnergyOther
Resources
Accounting and record keeping systems
OPERATING CONTROL
OPERATING CONTROL
Planning, organising., coordination, staffing,directing, controlling, evaluating
Menu ImpactMenu Impact
1. Product requirements and control procedures
2. Cost control procedures
3. Production requirements
4. Equipment needs
5. Sanitation requirements
Menu ImpactMenu Impact
6.Layout-space requirements
7.Staffing needs
8.Service-style requirements
9.Sales-income-controlprocedures
Menu PlanningMenu 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 strategiesmenu 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 PlanningMenu 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 PlanningMenu 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 menu design
single sheet menu
single fold menu
two fold menu
menu changesmenu changes
external factors consumer demand economic conditions the competition suppliers and ingredient variety industry trends
menu changesmenu changes
internal factors operation's meal patterns concept and theme operation system menu mix
Calculating Menu Selling PricesCalculating 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 PricesCalculating Menu Selling Prices
1. Simple Mark-Up Pricing use the following mark-up formula to determine
an item's menu price... item plate costmenu price = ----------------- desired FC%
menu price = (item plate cost) x multiplier
Calculating Menu Selling PricesCalculating 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 PricesCalculating 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 PricesCalculating 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 itemnon-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 PricesCalculating Menu Selling Prices
1. Simple Prime Cost Pricing : involves a 3-step process 2. determine the labor cost per guest...
labor costslabor 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 guestmenu price = ---------------------- desired prime cost %
Calculating Menu Selling PricesCalculating 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 EngineeringMenu Engineering1. 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...
1popularity cutoff = ---------------------- x 70% number of menu items
the profitability cutoff is determined by calculating the average contribution margin... total CMaverage CM = ---------------------------- total number of items sold
Menu EngineeringMenu Engineeringmenu 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 EngineeringMenu 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 Developing F&B StandardsStandards
Standards:
are levels of expected performance help identify variances the more specific the standard the more
time needed to develop and monitor
Pre control Pre control
1. Standard recipes
2. StandardPurchase Specifications
3. Standard yields
4. Standard portion sizes
5. Standard portions costs
Standardized RecipesStandardized 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 Advantages of following a Standard following a Standard
reciperecipe.. 1. Consistency: 2. Yield calculations: 3. Requirement of equipment: 4. Time management:
Advantages of Advantages of following a Standard following a Standard
reciperecipe..5.Indenting and receiving 6.Supervision 7.Non-availability of personnel 8.Potential Cost
Developing a standard Developing a standard Recipe: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. recipeDeveloping a std. recipeThe use of utensils Step by step methodTime and Temperatures Provide direction for presentation,
portioningDocumentation with photographTraining to staff
Purchase Specifications: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 Product test and Kitchen test Kitchen test
FRUIT AND VEGETABLES Count and weight
Waste/ peel, thickness of peelShapeColourFirmnessSmellTaste
Product testProduct test
CANNED ITEMS
Drained weight Density for juices Colour Taste Appearance No. of portions
BUTCHERY TESTBUTCHERY TEST or Yield Testor Yield Test
•
•Waste
• Yield /usable meat• Bones• Feel to touch• Firmness of flesh• Colour of flesh• Bone structure, colour of bones
COOKING TESTS:COOKING TESTS:
Cooking time Cooking losses Taste after cooking Appearance after cooking Flavour after cooking Shrinkage factor Storing factors Reheating factors
HOTEL ABCSTANDARD 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 ABCSTANDARD PURCHASE SPECIFICATIONS
NAME OF PRODUCT: TomatoesINTENDED USE For SaladsGRADE/ QUALITY Grade AUNIT : kg PRICE PER UNIT Rs. 6.50/ kgAVAILABILITY: ALL YEAR ROUND
APPEARANCE: Shining, Free from spots, bruises, dirtTEXTURE: Firm COLOUR : Bright RedFLAVOUR 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 yieldStandard yieldyield 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 YieldStandard 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 CARDSR. NO. DATE SUPPLIER GODREJ NAME OF PRODUCT: BR. CHICKEN GRADE : A RATE 60.00 KG
RATE AMOUNT
% COST FACTOR
A.P. R.T.C. R.T.S.
BROILER CHICKEN WITH SKIN BROILER CHICKEN W/ OUT SKIN WEIGHT OF LEGS AND BREASTS BONELESS CHICKEN CHICKEN TIKKA
1 KG 850 GMS 450GMS 350 GMS300 GMS
60.00 70.58 133.00 171.00 199.00
60.00 100 % 85 % 45% 40 % 33%
1.17 2.21 2.80 3.33
NO OF PORTIONS 2
COST PER PORTION 30.00
SELLING PRICE 180.00
COST % 16.6 %
Standard PortionsStandard Portions
Decided before actual operation Expressed in weight, number,scoops,slices etcStandard portion size brings in the consistency in product
Helps maintain std costsTools for std portions: ladles,spoons,sauce boats,scoops
Standard Portion SizesStandard 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 COSTSSTANDARD PORTION COSTS
Combination of std recipe and std portion sizes
Recipe gives a cost figure at a particular yield
total recipe coststandard portion cost = ---------- number of portions
Standard costs and Actual costs
The Purchasing Cycle: An Audit The Purchasing Cycle: An Audit TrailTrail
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 TrailAn Audit Trail3 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 ObjectivesPurchasing 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 Purchasing Responsibilities: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: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 SuppliersSelecting Suppliers4 value - relationship between price and
quality
5 compatibility
6 honesty and fairness
7 delivery personnel - appearance, attitude, and courtesy
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