Food service operation

requires following
Money,
Materials,
equipments,
personnel.

The objectives
1.Analysis
of
income
and
expenditure
2.Establishment and maintenance
of standards
3.Pricing
4.Prevention of waste
5.Prevention of fraud
6.Information

Special Problems Of
F &B Control
1

The perishability of produce

2
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 Control

Establish standards
Measure the performance
Note the deviation
Take corrective action

Considerations in
designing a control
system
1. Accuracy:
2.Timeliness:
3.Objectivity:
4.Consistency:
5. Priority:
6. Cost:

Considerations

7.Realism:
8. Appropriateness:
9. Flexibility:
10.Specificity:
11. Acceptability:

WHO IS RESPONSIBLE FOR

CONTROL
Owner
General

manager
Food and beverage manager
Accounting department
Chef
Purchasing agent
All employees

Basic Policies
FinancialPolicy

MarketingPolicy

Caterin
gPolicy
Operating Budgets

Capital Budgets

Food and beverage sales

Cost of food and
beverage
Cost of labour
Cost of overheads

Fixed/ heavy
equipments
Small plant
Cash

Master Budgets
Trading Account
Profit and loss account
Balance sheet

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 Process

Organizing
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 Process

Staffing
recruitment and hiring of highly qualified
workers
Directing
supervising, scheduling, and disciplining
Controlling
developing and implementing control systems

The Management Process

Evaluating
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 Policies
Financial

Policies

The

marketing policy

The

catering policy

Financial Policy
To determine

levels of profit, costs,

From various operations
To determine level of subsidy and
contribution margin from various
operations
To set targets for the departments

Marketing 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 Policy
National

identity
Profile of guest
Market Share
Turn over
Profitability
Average sprnding power
Satisfaction levels
Product

Catering 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
Dcor, comfort levels etc

Control Phases
Planning

and Pre control

Operational
Control

Control

after the event

FOOD AND BEVERAGE

CONTROL CYCLE

Purchasing

receiving

Service

Menu
Storing

Production

Issuing

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

Planning, organising., coordination, staffing,directing, controlling, evaluating

Marketing Plan and Strategies

Menu

Products
O
P
E
R
A
T
I
N
G
C
O
N
T
R
O
L

Purchasing
Receiving

Storing
Issuing

Equipments
Lay out

Production
delivery systems

Personnel

Personnel
Administration
Training

Preventive
Maintenance

Production
Service

Accounting and record keeping systems

Energy

Other
Resources
O
P
E
R
A
T
I
N
G
C
O
N
T
R
O
L

Menu Impact
1. Product
requirements
control
procedures
2. Cost control procedures
3. Production requirements
4. Equipment needs
5. Sanitation requirements

and

Menu Impact
6.Layout-space requirements

7.Staffing needs
8.Service-style
requirements
9.Sales-incomecontrolprocedures

Menu 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 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 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 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
single sheet menu
single fold menu
two fold menu

menu changes
external

factors
consumer demand
economic conditions
the competition
suppliers and ingredient variety
industry trends

menu changes
internal

factors
operation's meal patterns
concept and theme
operation system
menu mix

Calculating 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 Prices

1.

Simple Mark-Up Pricing

use the following mark-up formula to determine
an item's menu price...
item plate cost
menu price = ----------------desired FC%

menu price = (item plate cost) x

multiplier

Calculating 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 Prices

1.

1.

Contribution Margin Pricing

involves a 2-step process
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 Prices

1.

1.

Ratio Pricing
involves a 3-step process
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 item
non-food costs plus desired profit = (item plate
cost) x (ratio)

3.

determinethebasemenusellingprice...
menu selling price =(non-food cost plus profit) +
(item plate cost)

Calculating Menu Selling Prices

1.
2.

Simple Prime Cost Pricing : involves a 3-step process

determine the labor cost per guest...
labor costs
labor cost per guest =
--------------------number of expected guests

3.

determinetheprimecostperguest...
prime cost per guest = (labor cost per guest)
+ (item plate cost)

4.

determinethemenuitem'sbasesellingprice...
prime cost per guest
menu price = ---------------------desired prime cost %

Calculating Menu Selling Prices

1.

1.
2.

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
those that require extensive labor preparation
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 Engineering
1.

1.
2.
3.

looks at a menu item's popularity and profitability

need 3 pieces of information to perform this analysis
the selling price of the item
the quantity sold of each item for a specified period
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...
1
popularity cutoff = ---------------------- x 70%
number of menu items
the profitability cutoff is determined by calculating the average contribution
margin...
total CM
average CM = ---------------------------total number of items sold

Menu Engineering
menu

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 Engineering
strategies

for each menu item are developed based

on 2 criteria:

which category the menu item falls into and

2. where exactly in the category the menu item
falls
1.

Developing F&B
Standards
Standards:
are

levels of expected performance

help identify variances
the more specific the standard the more time
needed to develop and monitor

Pre control
1.
2.
3.
4.
5.

Standard recipes
StandardPurchase Specifications
Standard yields
Standard portion sizes
Standard portions costs

Standardized 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.
6.

portion size and portioning equipment

yield

Advantages of
following a Standard
recipe.
1.

Consistency:
2. Yield calculations:
3. Requirement of equipment:
4. Time management:

Advantages of
following a Standard
recipe.
5.Indenting

and receiving
6.Supervision
7.Non-availability of personnel
8.Potential Cost

Developing a standard
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. recipe

The

use of utensils
Step by step method
Time

and Temperatures
Providedirectionforpresentation,
portioning
Documentationwithphotograph
Trainingtostaff

Purchase Specifications:

1.
2.
3.
4.
5.

based on menu requirements and pricing policies

give a concise description of the following product
features:
quality
size
weight
count
yield
used to compare similar products from competing
vendors

Product test and

Kitchen test
FRUIT

AND VEGETABLES
Count and weight
Waste/ peel, thickness of peel
Shape
Colour
Firmness
Smell
Taste

Product test
CANNED

ITEMS

Drained weight
Density for juices
Colour
Taste
Appearance
No. of portions

BUTCHERY TEST
or Yield Test

Waste
Yield /usable meat
Bones
Feel to touch
Firmness of flesh
Colour of flesh
Bone structure,
bones

colour

of

COOKING TESTS:

Cooking time
Cooking losses
Taste after cooking
Appearance after cooking
Flavour after cooking
Shrinkage factor
Storing factors
Reheating factors

HOTEL ABC
STANDARD 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 ABC
STANDARD PURCHASE SPECIFICATIONS
NAME OF PRODUCT: Tomatoes
INTENDED USE
For Salads
GRADE/ QUALITY
Grade A
UNIT :
kg
PRICE PER UNIT
Rs. 6.50/ kg
AVAILABILITY:
ALL YEAR ROUND

APPEARANCE:
TEXTURE:
COLOUR :
FLAVOUR
PACKING
SIZE AND SHAPE
NO. PER KG

Shining, Free from spots, bruises, dirt

Firm
Bright Red
Ripe flavour (Free from overriped smell).
to be packed in corrugated boxes of 5 kg
Round or oblong
5-6 in a kg

ANY OTHER REQUIREMENT :

Should be transferred in
different trays in front of the receiving personnel.

SIGNATURE OF S & P OFFICER

DATE

to

Standard yield
yield

means
the
net
weightvolume 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 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 CARD
DATE

SR. NO.
NAME OF PRODUCT:

A.P.

BROILER
SKIN

BR. CHICKEN GRADE : A

CHICKEN

SUPPLIER

GODREJ

RATE

60.00 KG

RATE

AMOUNT

60.00

100 %

COST
FACTOR

WITH

1 KG

60.00

BROILER CHICKEN W/ OUT

SKIN

850
GMS

70.58

WEIGHT OF
BREASTS

450
GMS

133.00

45%

2.21

350
GMS
300
GMS

171.00

40 %

2.80

199.00

33%

3.33

85 %

LEGS

R.T.C.

BONELESS CHICKEN

R.T.S.

CHICKEN TIKKA

AND

NO OF PORTIONS

COST PER PORTION

30.00

SELLING PRICE

180.00

COST %

16.6 %

1.17

Standard Portions
Decided

before actual operation

Expressed in weight, number,scoops,slices etc
Standard portion size brings in
the consistency in product
Helps maintain std costs
Tools for std portions:
ladles,spoons,sauce boats,scoops

Standard 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 COSTS

Combination

of std recipe and std portion

sizes
Recipe gives a cost figure at a particular
yield

total recipe cost

standard portion cost = ---------number of portions

Standard

costs and Actual costs

The Purchasing Cycle: An Audit

Trail
1.

An F&B department needs something (e.g., food items,

beverage items, wine glasses, menus, salt shakers, etc.)
a requisition form is created
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 Trail
3

6
7

Contact a supplier
a purchase order form is created
Supplier sends items requested
supplier generates an invoice
Receiving checks items sent by supplier
receiving creates a daily receiving report
Items are moved wither into the storeroom or directly to
production
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 Objectives:
based

on the 5 rights -- an F&B operation should

always purchase the...

1.

right product at the

2.
3.

right quality in the

right quantity at the

4.

right price from the

5.

right source.

Purchasing
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:
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 Suppliers
4 value - relationship between price and quality
5 compatibility
6 honesty and fairness
7 delivery personnel - appearance, attitude, and
courtesy