FLASH FOOD COST CONTROL

INTRODUCTION:

What do you mean by flash food cost? `Flash' means in a flash or split of a
second or at a glimpse. That is the means by which you, as a chef or F&B
Manager will come to know the food cost of the day within a few minutes. After
knowing the food cost you can take the necessary preventive measures as
required. Flash food cost control in other words means daily food cost control.(Flash
foods also means the class of food items like meat, fish, poultry, veal, ham etc. In
any normal around 40% of the total food cost. A comparative study of the food cost
under these major headings meat, fish and poultry, vegetables, dry goods etc-
are also carried out to check the variance in prices which directly affects the food
cost selling price and profit margin).

CALCULATION OF FOOD COST: There are several basic terms which need to
be emphasized with regard to the calculation of food costs, such as:

FOOD COST: This refers to the cost of food incurred in preparing the meals
served.

FOOD COST% : Refers to the % of the revenue from sales incurred in

preparing the meals, that is, the cost of food as a % of sales of food.

POTENTIAL FOOD COST OR SALES:

The food cost (or sales) under perfect conditions. This may be expressed
as a% or in financial terms. In major hotels to find out the flash or daily actual food
cost anyone of the following formats or both are used. Both these formats are the
simplified versions in which we can find out food cost on daily basis. Even a 0.5%
variance in food cost % may end up in lakhs of rupees in a year in major hotels. So
a very thorough and constant check on the daily food cost is very essential in
the overall running of the hotel. From the second format the management or
chef can easily find out the reasons for variance in food cost% due to the change
in the prices of certain particular items? ingredient due to market fluctuations or
out of season. Hence the chef can immediately take necessary actions either by
removing that particular item from the menu for a certain period or by increasing
the selling price, so that the food cost % will remain the same.

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641.5 K.Rajshekhar. February- 05. No.28 (02) BSc H& HA. Page 1 of 1