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Knowledge Requirement 52

Knowledge Requirement 52

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Published by sher_a_punjab5783
City & Guilds Notes for Advance Diploma In culinary arts
City & Guilds Notes for Advance Diploma In culinary arts

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Published by: sher_a_punjab5783 on Sep 18, 2009
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12/30/2012

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CHAPTER 5
Costing, Budgets & Control.
Before we start with this chapter their are certain accounting terms that need to beclarified:-
Food Cost
= Ingredient cost (Oil, sugar, flour, meat, etc).
Total Food cost
= Food Cost + Over heads + Labor OVER HEADS: - Water charges, rent, Chemical & cleaners costs, electricity,heating charges as gas, fuel, transportation, etc.LABOUR: - It is of 2 types-1.Direct: - which is involve directly in the food production, service, andmaintenance & cleaning jobs of the kitchen.2.Indirect: - salaries paid to General Manager, accountant, and Humanresource department employees, etc. Which don’t produce the goods inkitchens but have equally important task 
Gross Profit (Kitchen profit) =
Sales – Food cost.
Net Profit =
Sales – Total food cost.
Note
G.P > N.P5.1 Identify & explain the various sources of information used for monitoring food & beverage operations performance.Past Performance, Kitchen Profit, Sales, Retention, Outside Influences.It is very important to monitor the performance of the beverage & food operations. Asthese help to evaluate if the business is running in the profit or not.
Past Performances
 
can be measured with the help of the
trading account, profit &loss, turn over, net profit & budgets.
Past performances can be measured by comparing Income statements i.e.:-
Trading Account. This shows the gross profit /loss.
Profit & loss Account. Shows net profit or net loss.
Trading Account:-
This account is also called the goods account as only transactionrelating to the goods is only recorded. This account shows Gross Profit i.e.:- difference between the sales & food cost.If the amount of sales exceeds the amount of purchases then the difference is termed asG.P. that is the F & B operation is doing fine. Vice versa is gross loss.
Gross Profit (Kitchen profit) =
Sales – Food cost.
 
 Profit & Loss Account: -
Trading Account only discloses the G.P earned as a result of  buying & selling of the goods. But there are other costs & expenditure incurred duringthe processes which are left out.So to have net amount of profit
(N.P)
sum of total food cost is subtracted from the sales.The net profit of the current year can be compared with that of the previous years. Itenables the business to know whether the operation is being conducted efficiently or not.
Net Profit =
Sales – Total food cost.
Budgets: -
Budget generally refers to a list of all planned expenses and revenues. A budget is an important concept in business, as they use a budget line to illustrate thegrowth, expenses incurred from the period of the time & help to evaluate the profitability.If the real expenditure & revenue are close to the estimates then it means thatoperation is running normal. But if expenses fluctuates & increases. Then the loose poleshould be found & fixed.
SALES REVENUE/TURNOVER 
– The money value of the sale of products by a business is called as a turnover. It helps the business to evaluate the profit that it has madeduring the period. Higher the turnover the better the business is performing. They cananalyze with their past & see what they can do better to raise their sales revenue/turnover.
Kitchen Profit
It means the Gross Profit.This profit helps to control & give clear picture of the stock & commodities in the hand.If the food cost increases then the sales then it mean that we are incurring losses. Socorrective action should be taken. And kitchen profit should be matched on frequent periods.
Sales
Sales mix figures may be taken from a sales summary sheet.Food & drinks sales may be broken down further to provide sales mix data. This does notonly reconciles sales of item with different gross profit but also provides information on-
Popular / unpopular items on the menu/drinks list.
Record for stock control, e.g.:-helping predict future demand.
Change in the customer’s interest.
Where the profit & losses are being made.
Retention
 
By retention we mean the guest returning.In the hospitality industry say service & goods that you may provide to the guest are of the good quality. But you are not able to attract the guest again & again to your restaurant. Then it is not possible for the business to make profitability in the long run.
OUTSIDE INFLUENCES:-
 
By outside influences it is meant the competition in the market that is faced by therestaurant.Say if our competitor is doing well in same period of time. Then our F & B operationsneed to be amended. That may include menu items, menu mix, etc.
5.2
Describe the methods & procedures for determining purchase requirements.Menus, Cuisine, Stock levels, Suppliers, Method of purchasing, Delivery, Availability of the units.Purchasing is the very crucial aspect in the kitchen management. What ever goods or commodities to be purchased depend upon the Menu used.
MENUS: -
There are different kinds of the menus used in the industry. On the bases of demand & commodity used the purchases of the stock takes place. Here are someexamples of the menu used in the industry;-
Table d´hote or set price menu: - This menu forms three or two courses at a sameset price. Further the choice of the dishes that is offered is also limited. (In thismenu the goods purchased would be of limited variety. And would not be aselaborated in he other menus.)
A la carte: – in this kind of the menu the dishes are individually priced. There is awide variety of food to choose from the menu. So the shopping list that is made iselaborated.
Special party or function menus:-Menus for the banquets or function of all kindscomes under these menus. Before making purchases the special requirement ismade & goods & commodities that are required are ordered.
Hospital Menu: - These are the special menus that are complied by the chefskeeping inconsideration the need of patients. Nutrition& food value is the mainconsideration.
Ethnic or specialty menus:- In these menus the dishes that are served are of ethnickind – Chinese, Indian, African, Greek, etc. so the purchases that would be madefor these menus would be of ethnic condiments & commodities, etc.
CUISINE:-
Cuisine is a specific set of cooking traditions and practices, often associatedwith a specific culture. There are different kinds of the cuisines available in the industry.Cuisines can be defined on the bases of the region, religion, country (Jewish, Chinese,Indian, Jain, etc) cuisine on the bases of the diet, etc.All these cuisines need goods & commodities for their production. Different cuisines willhave different needs.Their ingredients that require to be purchased can be:-
Fresh
–.These includes the goods that have never been processed. But used in their natural form & fresh, but not preserved. Like dairy food; Fruits; Vegetables, poultry,meat & sea food. For example the preparation of tandoori chicken. We need freshsupply of the chicken. But if we need a pickle we would get ready made. As the timefactor it takes to make. Different dishes demand different kind of ingredients, say inthe fresh salad only fresh vegetables are required, frozen vegetables will not do.

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