Food Cost Management Best Practice Manual

‘A recipe for success’

Index
Section 1 – Management Overview
! ! ! ! ! ! ! ! ! ! ! Objectives and Outcome Key Performance Indicators Why have a manual? Food Cost Management Facts Who needs to be involved? Management Responsibility Table How to use the manual Food Cost Management Action Checklist Process Flow Chart Questions HUKI Food Cost Management Best Practice

Section 2 – Planning
! ! ! ! ! ! ! ! ! ! ! Menu Costing Sales Mix Analysis Gross and Net Weights Achievable Food Cost Exercise Setting Menu Selling Prices Forecasting and Food Cost Planning Banqueting Costing and Purchase Planning Peaks and Troughs Planning Shopping Basket Profit Maximisation Budgeting
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Section 3 – Ordering, Receiving, Storage, Control and Wastage
! ! ! ! ! ! ! ! Par Stocks Must Stocks Ordering – The Purchase Cycle Receiving and Goods In Storage Security and Key Control Out of Hours Policy Wastage and Out of Date Stock

Section 4 – People
! ! People Colleague Feeding

Section 5 – Revenue Control and Yield Management
! ! ! ! ! ! ! ! ! Revenue Control Reports Covers Definition Nominal Code Definitions Food Tracker Stock Taking Table Management and Food Production Optimum Food Costing Sharing Information

Section 6 – Appendices
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Charts and Food Cost Calculations
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Why Have A Manual? Food Cost Management Facts Who Needs To Be Involved? Management Responsibilities Table How To Use The Manual Food Cost Management Action Checklist HUKI Food Cost Management Best Practice Questions 4 .Management Overview ! ! ! ! ! ! ! ! ! ! Objectives And Outcome Key Performance Indicators.

5 . Leading to: .Optimum Food Costing. • Consistent Standards Throughout The Hotel And Across The Hilton Estate. Outcome • This manual will allow the hotel to develop a systematic approach to food cost management that will bring consistent. • Put in place monitoring and control procedures to make sure that these solutions and tools are used. • Improved Efficiency. controlled and planned profitability. • Improved Hotel Food Costs. • GOP Impact On Balanced Scorecard. • Management Has Clear Understanding of Best Practice. • Improved Customer Service. • Improved Staff Training And Knowledge.Objective • To provide solutions and tools to effectively manage hotel food cost: Making Food Cost Management A Way of Life.

Key Performance Indicators for Best Practice Food Cost Management. (KPI’s) • Planned food cost is achieved per period • All menus and buffets are costed • Monthly food purchasing plan is in place • Par stocks in place • Monthly shopping basket exercise completed • Controlled ordering procedure in place • Controlled receiving and storage procedure in place • Recorded wastage procedure active • Staff training and knowledge up to date • Table management procedures in place • Staff feeding meeting Hilton people standards • Effective revenue control in place • Stocktaking accurate and consistent 6 .

Chefs control the biggest cost budget after payroll but are given little or no training and assistance in how to do it. • No formal document exists to teach Chefs and Managers the Hilton Standard. • • • To separate the food operations process into component parts and give clear operational procedures for each part. Control Systems to manage food cost vary from hotel to hotel. There is little understanding of the formal mechanics of food cost management. To inform. A lot of our Chefs are recruited from smaller hotels or restaurants where formal food costing is not important to the business. educate and share knowledge with management and kitchen staff on the importance of food cost management. to react to changes in business demands.Why Has It Been Created? • • Hilton Hotels have a varying level of efficiency in food cost management. Change in management and staffing means that it is not always possible to work to the same standards. • • • • • • Food Cost Management Is Not Just The Responsibility Of The Chef! 7 . Optimum unit food cost is not planned. and due to the multi cultural and multinational nature of our kitchen brigades systems and procedures may be different in other countries. There is little understanding of what action to take to improve costs generally or what contingencies to make.

Food Cost Management “The Facts” Hilton. purchases and cost percentages in the 3 year period ending 2002.50 for breakfast. Frightening Scenario It is human nature that processes can lapse for various reasons such as sickness. holidays and new staff appointments etc. Therefore it is important that tight controls and tested methods exist in order that the company maximizes profitability.7m £122. 8 . If we use an average selling price of £10.750 unattributed costs.2m Cost 28. £21.95 for dinner and a banqueting menu of £29.88% 28. lost sales and £6. It is also realistic to assume that we do not do things right all of the time so imagine if the following revenue was not raised at each HUKI hotel every day of the year. 1 x Extra banqueting dinner due to an extra delegate arriving late. as a group has generated and forecasts to generate the following sales.725m For your hotel this could mean a minimum of £22.00 across the 77 hotels in the Hilton portfolio.2m £123.39% After payroll. Year 2000 2001 2002 Sales £119. we would be losing net sales of: - £ 1.a. food purchase is our biggest operating cost of sales. 1 x Exclusive breakfast due to Fidelio meal plan report or guest key card not being checked.4m £35.3m £37. 1 x TDH dinner due to Fidelio meal plan report or guest key card not being checked.54% 30.5m Purchases £34.500 p.

sales. Executive Chef – Daily management and control of all processes. cooking.Who Needs To Be Involved And Understand The Process General Manager. Food and Beverage Manager. Executive Head Chef. menu planning and costing. • • • Conference & Banqueting Sales Manager – Revenue maximisation. • Financial Controller – Provision of effective control measures. C&B Manager . Strategic food cost planning. Food and Beverage Manager / Food Services Manager. everyone must contribute and be looked upon as an important contributor. Financial Controller. Restaurant Manager. Strategic food cost planning. Each department head plays a key part in the process and it should be noted that their contribution is important. buying. preparation. stock control and wastage control etc. Conference and Banqueting Sales and Operations Managers. All team members who impact on food buying. table management. production and service.Efficient service. audit and periodic review of accuracy. Key Responsibilities • General Manager – Overall executive responsibility for food cost management likened to responsibility for all revenue streams and control processes within the hotel. In order to achieve a balanced approach. staff training and customer relationship management. 9 . Strategic food cost planning. revenue capture. revenue maximisation. wastage control. profit planning and customer relationship management. receiving.

Management Responsibilities Table Financial Controller General Manager F&B/FS Manager C&B Sales Manager HR Manager X x x x x x x x x x x x x x x x x x x x x x x x Head Chef Stores x x x x x x x x x x x x x x x x x x x Management Overview Menu Costing Gross and Net Weights Achievable Food Cost Exercises Setting Menu Selling Prices Forecasting and Food Cost Planning Banqueting Costing and Purchase Planning Peaks and Troughs Planning Shopping Basket Profit Maximisation Budgeting Ordering Receiving and Goods In Storage Security and Key Control Out of Hours Policy Wastage and Out of Date Stock People Staff Feeding Revenue Control Reports Covers Definition Nominal Code Definitions EPOS Management Food Tracker Par Stocks Must Stocks Stocktaking Table Management and Food Production Optimum Food Costing X x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x x 10 .

It is Best Practice that the hotel works with a recorded Par Food Stock. received and stored by the same person. It is Best Practice that a product photograph accompanies all menucosting sheets. It is Best Practice that individual supplier order sheets are used. • • • • • • • • • • • • • 11 . Best Practice is for the Financial Controller to undertake this exercise to review hotel selling prices against cost percentages. Best Practice is for the staff food to come from the public menus. It is Best Practice that 3 AFC exercises are undertaken per service as a minimum. It is Best Practice that nominated suppliers are adhered to when purchasing food products. Best Practice is to have a 7-9 day average stock holding. Every 3 months if there is a food cost problem. It is Best Practice that if food is specified. that invoices and control measures are audited for irregularities at least by weekly. Achievable food cost exercises should be undertaken at least every 6 months as Best Practice.HUKI Food Cost Management Best Practice • It is Best Practice that Banqueting menus should not be sold under their costed price. ordered. It is Best Practice that the shopping basket exercise is carried out 3 monthly and then at the input of new menus or dishes. Best Practice is for all costings to be reviewed at least every 3 months to take into account market price fluctuations and seasonal changes. It is Best Practice that all menus are costed. Par Stocks should be based upon a maximum of 7-9 days trading per average. If relevant this should be per outlet. Therefore if a customer wishes to purchase at a given selling price the Chef should be consulted to devise and cost a separate menu.

It is Best Practice that the Head Chef has overall control and is fully responsible for purchasing and stores. It is Best Practice to calculate Optimum Food Cost as part of month end calculations. and that minimum numbers are charged without fail.• • • • • • • • • • • • It is Best Practice that as a minimum all Meat. It is Best Practice that contracts are signed for minimum numbers. 12 . It is Best Practice that as a minimum all red sections of the Food Cost Management Action Checklist. It is Best Practice that invoices are not paid until Credit Notes are received. It is Best Practice that all kitchen personnel can calculate a food-selling price given a set cost price. It is Best Practice that stock is counted weekly if food cost percentage is not being achieved. It is Best Practice that a stock valuation is obtained per accounting period. Fish and Vegetables are weighed on delivery. It is Best Practice that all kitchen personnel are trained on this manual. It is Best Practice to return inferior quality goods. It is Best Practice to use a Food Tracker System.

5) The responsibilities of each manager are identified in the appendices.How To Use The Manual 1) Before use it is assumed that all users have a degree of knowledge. 3) If relevant each section has detailed procedures for you to follow. Red sections are ‘essential tools’ Yellow sections are ‘recommended tools’ Green sections are ‘desirable tools’ should problems still exist. Start with the management responsibilities and action checklist found in the next section. 6) Each section has been given a degree of importance of effective food cost management. 13 . 4) The manual contains appendices of recommended blank masters for reference and copying. Not all sections will be relevant to you or your hotel. 8) Formulate an action plan of what needs to be done and allocate responsibilities. 7) Work through each section of the manual. Do a health check of where you currently stand. 2) The manual acts as a training tool and aide memoir to ensure that you have a consistent and structured approach to food cost management.

Food Cost Management Action Checklist Action Area Menu Costing Achievable Food Cost Exercises Setting Menu Selling Prices Forecasting and Food Cost Planning Banqueting Costing and Purchase Planning Budgeting Ordering Receiving and Goods In Storage EPOS Management Wastage and Out of Date Stock Revenue Control Nominal Code Definitions Optimum Food Cost Calculation Profit Maximisation Security and Key Control Out of Hours Policy Staff Feeding Food Tracker Par Stocks Stocktaking Table Management and Food Production Gross and Net Weights Peaks and Troughs Planning Shopping Basket Continuous Review of Cost. Accuracy Covers Definition People Reports Must Stocks Section 2 2 2 2 2 2 3 3 3 5 3 5 5 5 2 3 3 4 5 5 5 5 2 2 2 Throughout 5 4 5 5 Yes / No Red areas are actions that are essential standards of operation. Prices. Green areas are desirable action areas. Yellow areas are recommended if food cost problems exist. 14 .

15 .Before You Go Any Further Ask Yourself These Few Simple Questions • • • • • • • • • • • • Is food cost profit important to me? Do I know what to do if I get or know I am going to get a poor food cost result? Would I like to achieve a better food cost for the business? Do I know how much any % improvement in food cost would mean to hotel profitability? Can I put in place an action plan to improve? Have I been able to solve all of my problems in the past without them reoccurring? Do all of my team understand how to manage food cost? Can I teach them to manage it better? Are enough team members involved in managing the food cost? Did I know that so many people play a part? Do I know how to calculate food-selling prices to achieve a profit? Do I know the cost of each dish sold and are my menus costed? Do I know the average food cost of my buffet? Are any or all of the tools in place to manage food cost? The list could be endless but if you answered NO to any of these questions then this manual could benefit you.

Planning ! ! ! ! ! ! ! ! ! ! ! Menu Costing Sales Mix Analysis Gross and Net Weights Achievable Food Cost Exercise Setting Menu Selling Prices Forecasting and Food Cost Planning Banqueting Costing and Purchase Planning Peaks and Troughs Planning Shopping Basket Profit Maximization Budgeting This Section Contains KPI’s ! ! ! All menus and buffets are costed Monthly food purchasing plan is in place Monthly shopping basket exercise completed 16 .

Due to seasonal variations some products are not available all year round or their price might be artificially inflated due to the fact that the product is sourced from overseas. it is up to the hotel to enforce this as with all contracts and agreements. Reasons and Procedures for Menu Costing 1) Recipe costing must be completed for all dishes on the menu. breakfast and carvery. (See gross and net weights). all menus should carry the proviso that prices are subject to change etc. 2) Costing exercises must be undertaken on all non-menu buffets. i. With differing sales mixes within all hotels due to the type of food offerings. Or indeed if you have a selling price. how much a dish needs to cost in order to make a set profit margin. including banqueting and table main courses. 5) Any changes should be noted and selling prices or recipes adjusted accordingly. This applies to all food that is served whether it is a single item such as a sandwich. 3) Costings should be made on a ‘gross weight’ basis.Menu Costing Menu or recipe costing is the key component of effective food cost management. Menu costing needs to make allowance for this. single main course. restaurant buffet or indeed a breakfast buffet. it is not the case where all food products sold will automatically achieve a planned food cost.e. N. Therefore a balance needs to be made between what is practical to put on the menu to achieve cost and what is luxury (You can up sell to luxury?).B. 4) Best Practice is for all costings to be reviewed every 3 months to take into account market price fluctuations and seasonal changes. (See also stocktaking). You need to know how much an item costs before you can effectively set a selling price. For example the costs in a fine dining restaurant will or might be considerably higher than at banquets or breakfast. 6) Update your EPOS system and the recipe card along with date of alteration. Menus need to be costed to ensure that both profit is made and that customer expectation of quality and standard is reached or exceeded. 17 .

(Note that small canapés can be a high cost item due to preparation and content. Nobody knows the cost of a single sprig of Rosemary or 2 slices of cucumber! 11) Include in your costings an amount for wastage. melon. 1) Gather ALL ingredients for 10 portions. This allows us to gain an average. i. (not to exceed 2%). 14) Include with the cost of coffee and tea the cost of milk. 4) Cost each item on the basis of net raw weight. if you make a terrine that contains 25 portions. chicken or steak etc. 50 portions for soups and 20/25 for pates and terrines. lunch and dinner buffets.e. box etc). Cost garnishes per 25/50 portions and divide down cost to single portions. as well as impacting on food cost. 3) Give a weight or size to each item (kg. 18 . (See gross and net weights). Method Menu or dish costings should be made in multiples of 10 portions. as however well people are trained and follow procedures there will always be some variance or ‘heavy handedness’.7) Ensure that all staff are trained to prepare dishes to the recipes of each dish. mint. 9) Canapés should be costed in multiples of 20 portions minimum. This wastes food and will often detract from the main part of the dish. 13 portions could be wasted (if not resold) if you serve it to a dinner for 12. 2) Itemise on menu costing sheet. It is Best Practice that all menus are costed. 16) Achievable food cost exercises need to be carried out on restaurant breakfast. Be consistent in your approach. 15) Insist on minimum sales numbers for certain items. sugar. gram. 12) Include in your costings an amount for staff feeding. petit four. (See achievable food cost exercises). and that the method is followed. 10) Common mistakes are over garnishing. biscuit or pastry (cost in multiples of 10). 8) Banqueting meals should be costed in multiples of 10 portions for single dishes such as. 13) Include in the cost of a STARTER and MAIN COURSE the cost of a bread roll and butter. (not to exceed 3%). bag.

French Fries.50 = £0.05/ portion = £25. Green Beans Ingredients.5) Add roll and butter (for starters and main course). 8) Calculate your selling price based on your desired food cost percentage. 7) Total cost for 10 portions. Tomatoes. Remember that if using compound dishes such as sauces or Dauphinoise potatoes. 9) Describe method of cooking. Weights and Costs Sirloin Steak 225g x10 French Fries 75g x 10 Green Beans 75g x 10 Tomatoes x 10 Mushrooms 25g x 10 Red Wine Sauce (Previously Cost) Total Cost @ £2. Mushrooms. 6) Add wastage.55 / 225g @ £0.25 = £3.50 = £36. (See formulas).15 / each @ £0. Please note the following simple example Menu Grilled Sirloin Steak.50 = £2.45 Therefore the cost of 1 dish is £3. Divide into 1 portion.20 = £1. these need to be costed separately.32 / 75 g @ £0.45/10) 19 .35 / 25g @ £0.50 = £3. (£36. You now have your cost per portion / menu item.225 / 75 g @ £0.645. 10) Photograph for consistent presentation standard You have now prepared a menu-costing sheet.

It is Best Practice that a product photograph accompanies all menu-costing sheets. If you follow these simple steps your menu costing will be accurate. After dish costing and dish preparation a photograph of the completed dish should be taken and placed with the cost sheet.15 net 30 You now have a net price. £12.645 x 100 ---------------.28.28. this example must be sold to the customer for £14.15 x 1. Before serving to the customer you must add VAT at the current rate.= £ 12.To calculate the selling price of the dish assuming a food cost percentage (%) of 30 % the selling price would be: Food Cost x 100 --------------------30 = Net selling price £3. This process should be applied to all dishes whether singular or compound. Therefore in order to achieve a food cost of 30%.175 = £14. 20 .

5 Total Food Cost (£) 2250 875 3500 5000 875 1250 13750 It can be seen that because of the drop in banqueting revenue and the increase in revenues from restaurant 2. Sales Mix (%) Breakfast Room Service Restaurant 1 Restaurant 2 Bar Banqueting Total 30 5 25 25 5 10 Total Sales Value (£) 15000 2500 12500 12500 2500 5000 50000 Outlet Food Cost % 15 35 28 40 35 25 27. This is especially true in the larger hotels. The continuing variance of covers will also affect the cost of food sold. Sales Mix (%) Breakfast Room Service Restaurant 1 Restaurant 2 Bar Banqueting Total 20% 10% 25% 5% 5% 35% Total Sales Value (£) 10000 5000 12500 2500 2500 17500 50000 Outlet Food Cost % 15 35 28 40 35 25 26 Total Food Cost (£) 1500 1750 3500 1000 875 4375 13000 The total food cost percentage is reached by dividing food cost £ by total sales £ and multiplying by 100. Therefore in order to achieve the overall desired food cost. Also to be taken into consideration is the rise or fall in covers within a sales outlet. These are two basic examples that are related to constant revenues. Note what that change in sales mix does to the change in food cost percentage based on the same £50. Example:. its food sales and department costs are broken down as follows to achieve a food cost percentage of 26%.000 per month. each food outlet within the hotel probably has a differing food cost.If hotel A’s sales mix was to change as outlined below. 21 .5% to 27.Hotel A has food sales of £50.Sales Mix Analysis As you will see from the table below.000 sales. that the food cost has risen for hotel A by 1. a balance needs to be achieved.5%. Example: . (See formulas).

Sales Mix (cvrs) Breakfast Room Service Restaurant 1 Restaurant 2 Bar Banqueting Total 1750 500 2000 500 250 1000 6000 Average Spend (£) 7.55 11.25 20 11. in order to achieve the same 26.63 net revenue. 22 . revenues and covers in order to explain fluctuations in food cost.00. If the breakfast spend was £6.78% food cost as in example 3 the Chef must try to save or adjust his overall cost by £2135.5 9.50.876 5.17 Total Revenue (£) 12994 4702 24750 8910 619 22000 73975 Food Cost per Cover (£) 1. In summary.Hotel B serves 6000 covers to achieve an average spend of £12. (£21945 / £73975) x 100. you need to understand the rise and fall of sales mix in costs.326 3.5 18 2.125 3. 100 covers would generate £510.500 7.500 3. The examples below highlight this.325 Total Cost (£) 2165 1829 7700 3960 241 6050 21945 The food cost for hotel B has now risen to 29. Example: .20 2. (It is true that a menu sold at whatever price. generates net revenue of £1234. Sales Mix (cvrs) Breakfast Room Service Restaurant 1 Restaurant 2 Bar Banqueting Total 1925 550 2200 550 275 1100 6600 Average Spend (£) 6.75 8.5 12.41.For example 100 covers for breakfast at full spend of £14. because of the movement in business.66%.200 0.78 Total Cost (£) 1969 1663 7000 3600 219 5500 19951 The food cost per cover is £3. (£19951 / 6000).5 22 12. still costs the same to produce). Because of this.325. If hotel B’s covers were to increase by 10% but the average spend was to decrease by 10% the following effect would be seen if we took the same food cost per cover per outlet.41 Total Revenue (£) 13125 4750 25000 9000 625 22000 74500 Outlet F/Cost % 15 35 28 40 35 25 26.25 16.00 per cover.

00 just on this one menu item. Total Cost £25.00 divided by 40 (x 250 grm portions) = £1. After cooking the same 10 kg Rib could weigh 9 kg.00 = £4. The example below will highlight the difference that the gross / net variance could show to a food cost. To take account of this net raw weight must be used in menu costing calculations.00 10 kg @ £4. = Menu Item Cost Per Portion 23 .11p difference in cost was multiplied at 10 covers per service (lunch and dinner) over a whole year then undercosting would amount to £803. A whole fresh salmon.Gross and Net Weights. Example. Based upon a 10kg Rib of Beef costing £4. (10% shrinkage). After preparation and cooking most food products experience shrinkage.00 kg = £40.00 per portion. Therefore. The £3. there is less product available to serve to the customer.00 / kg. Therefore the rule is Gross Raw Weight x Gross Cost ----------------------------------------Net Yield (number of portions) Another example could be as follows. If after gutting and trimming we have only 7 kg left (30% wastage) the cost per kilo would now be £3. 9kg@ £40.00.44 / kg divided by 36 (x 250grm portions) = £1.57.57 cost should be used in your menu cost price calculations. Therefore. Total Value = £40.11 per portion If this 0. with head. tail and bones weighs 10 kg and costs £2.50 per kilo.

as over a period you will find that the same amount of food is being consumed per head. Therefore good teamwork is required between the kitchen. The hotel needs to work out what is an average amount of covers. lunch and dinner). Values need to be given in the same manner as individual dish costing. The AVERAGE calculation is used. 24 . milk and coffee. Count in the same manner as you would when stocktaking. F&B Management and control departments. The only variables to the calculation are the net cost of food and the net selling price. for a quiet. choose service periods where you will serve approximately this number of covers. 4) All food items need to be counted to create an opening stock within the department. restaurant. moderate and busy service periods. again the customer decides more or less how much they wish to eat. Achievable food cost exercises should be undertaken at least every 6 months as Best Practice. butter. Method 1) The complete exercise will consist of quiet. these items need to be added to the stock sheets. 2) All participating team members need to be involved and briefed on their roles and responsibilities. This consumption is then applied to AVERAGE revenue per customer or service to give an AVERAGE food cost. as the food served is not of a fixed portion and customers have the choice of eating as much or as little as they wish. Therefore an opening and closing stock figure needs to be made to calculate consumption. Decide before starting who will do what. 3) All food consumed during a service period needs to be given a value. Although portion control is practiced to an extent with the Chef carving joints or serving individual portions of chicken or salmon etc. Moving on to cold buffet displays and finally hot dishes as they leave the kitchen. 5) As the buffet is replenished or extra items issued from stores. Therefore in order to establish the AVERAGE cost of a meal served to a customer it is necessary to calculate as accurately as possible the AVERAGE food consumption per customer. moderate and busy service. Once you have established these averages. Start with the simple things like sugar. Every 3 months if there is a food cost problem. Have previously prepared spreadsheets ready for counting.Achievable Food Cost Exercises A different approach needs to be applied to the costing of restaurant buffets (breakfast.

B. Recommended .3 lunch and 3 dinner services and 4-5 breakfast services.x 100 Net Revenue £300. (Treat discounts and complimentary as full price). All food that is returned to the kitchen to be used again is part of your closing stock. All wastage is part of your consumption.00 x 100 = 30% 10) As the AFCE is an average you will need to undertake a number of exercises. This will be your closing stock. Food Consumption ------------------------.75 1530 2723. Give these items a value. Sample AFCE for restaurant buffet lunch over 3 service periods Service 1 2 3 Total Covers Served 50 125 250 425 Food Cost (£) 133 303.75 Food Cost % 38 36 30 32. It is Best Practice that 3 exercises are undertaken per service as a minimum.75 Net Revenue (£) 350 843. 7) Calculate your opening stock. 8) Establish your net food revenue for the service period. Example. 9) Now that you are in possession of your consumption and revenue you can work out your food cost percentage. plus additions and your closing stock figures to find your consumption.00 --------------£1000. 11) Having completed the exercises add all your costs and revenues together to find out your average cost. N.6) At the end of service count back in all food items that are left unconsumed by the customer. Example.75 459 895.88 25 .

You can see that the average cost of the lunch buffet for this restaurant is 32.88%, based on 3 exercises. 12) Costs will vary between services; therefore the more exercises undertaken the more accurate your AVERAGE results will be. Agree the accuracy of the results with the Financial Controller. 13) These exercises should be used as a guide to costing, so that the Chef is aware of how much the buffet is costing to produce per service period. If it is too high he needs to trim it back. However do not compromise on standards. 14) N.B. where an a la carte menu is in operation during a buffet service. Do not include the covers, revenue or food consumed for a la carte as this will negate the result of purely counting the buffet.

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Setting Menu Selling Prices
There is no hard and fast rule to set menu selling prices. The most important thing to do is to consider all factors. • • • • • • • Required Food Cost % Sales Mix Revenue Mix Seasonality Fair Market Price / Value For Money Average Spend Potential Price Fluctuations

A practical way of seeing if selling prices generate the hotel sufficient profit is to carry out the following exercise. Looking at historical data (Micros / EPOS System) and your anticipated menu sales estimate how many individual menu items you will sell over a period (4 weeks). Menu Item Estimated Sales 1 600 2 1200 3 1000 4 600 Total 3400 Selling Price 3.50 5.50 6.00 8.75 Total Revenue Sales Mix % 2100 11 6600 33 6000 30 5250 26 19950 100

Now multiply each menu item sales mix percentage by a pre determined cost percentage, as identified below to give a weighted cost percentage. Menu Item 1 2 3 4 Sales Mix % 11 33 30 26 100 Menu Item Cost % 25 45 30 30 Weighted Cost % 2.75 14.85 9 7.8 34.4

This gives an overall weighted cost of 34.4%. Therefore, if the target is 30% cost the selling prices will either have to be increased or the cost prices reduced. Best Practice is for the Financial Controller to undertake this exercise to review hotel selling prices against cost percentages.

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Forecasting and Food Cost Planning
This is a tool that is not often used to effectively control the management of food cost. Its aim is to gear the Chef to the ordering and production of food in a regulated manner to service customer requirements based on anticipated business needs. If you are a Chef ask yourself these questions: • • Do I know what next weeks / months food revenue forecast is or am I just planning to order for the number of covers I expect to serve? How much planning do I do?

If the hotel expects to have total food revenues of £100.000 next month and is looking to achieve a 28% food cost then the Chef has only £28.000 to spend! How often is the revenue forecast discussed by the General Manager, Financial Controller, F&B and C&B Managers or Revenue Manager and Chef together? Prior to the start of each month the Chef, F&B Manager, Storeman, Buyer, Financial Controller etc. should hold a planning meeting. Remember again that after payroll, food purchasing is the biggest cost for the hotel. A planning meeting will enable you to do the following 1) Maintain correct stock levels of food to within 4 days. ! Best Practice is to have a 7-9 day average stock holding.

2) Minimise wastage by ordering and producing correct levels of food. 3) Gives suppliers maximum time to get quality and quantity correct. 4) Negotiate prices and discounts with suppliers based on volume. 5) Plan staff feeding (see below). 6) Minimise number of deliveries and invoices. 7) Review menu and dish costings. 8) Rotate menus effectively. 9) Maintain standards by using fresh commodities, therefore satisfying guest expectations.

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pies and stews are widely accepted by the customer. Remember when people are away from home they want something familiar. 2) Precise information about house function numbers on a particular date.Requirements 1) Precise information about menus and contents especially banqueting. 7) Plan to sale particular menu items on a particular day to cut down wastage. put it on the restaurant buffet and serve it to the staff. as it is what they will eat at home. Example – If weekly food sales are £25000 and target food cost is 30%. If a function is being served chicken with mushroom sauce. (See below). Most customers are not used to gourmet cuisine. 8) Plan to make use of cheaper cuts for buffets.weekday and weekend c) Sleepers that will eat in banqueting d) Sleepers that won’t eat (aircrew) e) Sleepers that eat in Executive / Club Lounge f) Inclusive Sleepers g) Tours 5) Sales mix pattern – do not just look at today look at the next 10 days and adjust your plans accordingly. Casseroles. Then the Chef has £7500 to spend in the week. 6) The above statistics after forecasting revenues can be used to forecast costs for food based on the restrictions imposed by the sales mix. then set weekly spend targets based on revenue / cost percentage. 29 . 3) Past history or trend data of sales in reference to a) Last years sales b) Sleeper density (double occupancy) c) Local events and promotions 4) Current statistics a) Sleeper/ Breakfast ratio – weekday and weekend b) Sleeper / Dinner ratio . Batch cooking is one of the most effective cost and waste control measures. Best Practice is for the staff menu to be the same as the restaurant or banqueting buffets.

Be lead by what you have to produce. i. It is the same as planning a staff roster or holiday planner. You will see that the staff are being served the same food as the customers.e banqueting menus Restaurant Roasts Monday Beef Soup of day Tomato Function 1 Function 2 Staff Melon Chicken Chasseur Veg Soup Roast Lamb Sm Salmon Chicken Kiev Haddock Turkey Tom Soup Lamb Cutlets Terrine Chicken Chasseur Melon Roast Cod Tom Soup Chicken Chasseur Veg Soup Roast Lamb Melon Chicken Kiev Carrot Soup Turkey Bisque Pork Lentil Steak Pie Consommé Pork Steaks Tuesday Lamb Vegetable Wednesday Gammon Mushroom Thursday Rib of Beef Carrot Soup Carrot Soup Friday Pork Bisque Buffet Buffet Saturday Turkey Lentil Lentil Steak Pie Buffet Sunday Beef and Chicken Consommé Pork Steaks Note that the planner can be broken down into daily service periods and can accommodate a number of functions.9) Use a weekly planner as detailed below to plan menus. 30 .

This might be a good time to install incentives or promotions. Review One of the most important areas of forecasting is review. Reviews can help the team learn and develop. Obtain a list of fixtures and plan accordingly. if you know that you will have a change in sales mix. • • • 31 . If there is a difference to your forecast find out why? If you have a variance to your weekly food cost estimates there should be reasons. Put as much emphasis on it as you would payroll! Plan ahead. Ideally the food and beverage team should be planning 2-3 months in advance. Be imaginative! 11) Accurate recipe / dish costings Always ensure that food forecasts are net of VAT. therefore probably meaning a change in cost mix. Midweek demand for room service is particularly high when there are major sporting events such as the Champions League on. At the end of each day or week write down the actual number of covers served and the revenue taken. you will be able to re-cost or adjust menu items and re-print outlet menus. react to changes in demand and business mix. Points to remember when forecasting • Ask questions of reservations about large bookings with no meal requirements at your weekly operations meeting. If necessary change your menus and pricing. Reviews also allow us to use our experience to plan better in the future. Make food cost and particularly wastage part of your daily reviews and meetings. This is a possible sales opportunity and could prevent a large booking turning up without being forecasted. By doing this. therefore you can investigate any overspend etc. Forecast in advance.10) Look at ways that money can be saved by not compromising on quality.

Therefore if a customer wishes to purchase at a given selling price the Chef should be consulted to devise and cost a separate menu.50. the Head Chef must be consulted and separately cost and suggest a menu that fits with his cost structure. The total cost of a menu can be established. Selling Below Published Prices If a menu is sold below its published selling price. the food cost margin will not be achieved.00 it will have a 26% cost.35).77 Main 2. ! It is Best Practice that banqueting menus should not be sold under their costed price.75 and sold at £25. Menu A Cost (£) Starter 0. 32 . Example.35 Total 6.43 Coffee 0. As it is known how much it costs to produce each dish and therefore each whole meal.75 to spend in buying produce.35 If 125 covers were to be served at the function the Chef would have £793. If a customer wishes to pay a lower price than the stipulated menu price. Example. (125 x £6.85 Dessert 1.95 Soup 0. If a menu containing a chicken supreme main course is costed at £5. because with the same selling price the cost will be 39%.Banqueting Costing And Purchase Planning The purchase of food for function set menus should be made consulting the individual recipe / menu costing sheets. The chicken cannot be replaced with beef fillet costing £8. The Chef should regularly consult and adhere to the cosBting plans. therefore increasing cost and effecting profit.

30 am.Peaks and Troughs Planning To totally understand how your business should be managed. you must forecast both covers and at what time peaks and troughs will occur.1. Using this forecast you will ensure: 1) Presentation is at its best 2) Products do not deteriorate as they are not held under heat lamps 3) Wastage is reduced as you are cooking for consumption ½ hour ahead Do not allow the breakfast Chef to cook everything off prior to service opening. Chart. 33 .00 am until 8. and to ensure best presentation. Presentation dishes for troughs should be reduced to half the size.1. Outside these times are troughs. best use of manpower. equipment and to reduce wastage to a minimum. Example. Breakfast midweek Monday to Friday Peak is 7.

Chart. Peaks and troughs should be forecast on a weekly basis and actioned accordingly. or 50 people might be leaving early on a tour bus.2. 34 . Remember 100 people might be attending a conference breakfast and will not dine in the restaurant.

A rise in market prices will be expressed as 100%+ and have a negative effect on cost price and a fall will be expressed as 100%. The exercise will track the rise and fall in commodity prices and can be a tool in setting menu selling prices. planning menu cost prices and assisting in explaining food cost fluctuation. It is Best Practice that the shopping basket exercise is carried out 3 monthly and then at the input of new menus or new dishes. A minimum of 40 items should be used for the exercise and they should be selected from commodities that have regular cost price movement (perishables). 4) On the second week do the same again.Shopping Basket In order to track the movement and fluctuation of price over a given period each Head Chef. (This market value will be identified as the starting point or 100%. You now have 2 shopping basket values. 3) Calculate total cost of shopping basket. 35 . Consider fish and vegetables out of season.and have a positive effect on cost price. Dry goods and goods that have a fixed annual price should not be used. 5) These 2 values are then compared to each other in the form of a percentage. Financial Controller or F&B Controller should undertake a shopping basket exercise. On the second week or month the market values of the same commodities will be established). Method 1) Choose a selection of ingredients (shopping basket). 2) Give a current market value. Goods with high volume and high price movement are particularly relevant.

25 0.5%.05 2.55%.00 14. In week 3 prices have risen over week 1 by 5.5 We can see from the above example that food prices between week 1 and week 2 have risen by 8. Menus should be costed on week 1.00 0.55 0. It is therefore correct to say that if prices fall we will theoretically make a higher food cost profit. This is expressed as 108.30 44.5%.89 1.55 14.90 0.00 0. over an extended period and due to seasonal variations prices will go up and down.99 0.00 8.50 Value Wk2 (£) 9. If they fell by 5.45 11.50 1.50 Diff (+/-) (£) 0.25 0.Example Product Unit Value Wk 1 (£) 9. On a weekly basis you should not expect significant price fluctuation.10 3.34 Diff (+/-) (£) 0.6 -1.25 8.70 0.16 Diff (+/-) (%) 1.2 20 5.90 0.00 Diff (+/-) (%) 2.15 0.00 0.00 5.45 10.54 0. It is also correct to say that if prices rise you should adjust your menu selling prices to reach the same desired level of food cost %.15 8.50 0.00 0.34 13.00 0.35 46.46 0. This means that our selected purchases are 8 ½% more expensive.55 14.00 8.00 Value Wk3 (£) 9. they would be expressed as 94. therefore price rise and fall if significant should be applied to menu price costing.9 Beef Fillet Lamb Fillet Tomatoes Melons Bread Cheese Potatoes Total Kg Kg Box Each Loaf Kg Kg 13. (Please note that prices may also fall.73 40.5%.00 0. This is expressed as 105. however.15 -0.25 42.75 0.00 1.45 11. 36 .19 1.53 27.55% to the starting point (week 1). in order that food cost profit can be maintained or menu items changed.5% of week 1).75 0.64 11.45 0.

The ‘Cash Cow’: high sales and high profit contribution make this the ideal product. It can be ‘milked’ for cash. High Plough Horse Popularity (sales) Cash Cow Dodo Low Cuddly Panda High Contribution (margin of profit) 37 . The ‘Plough Horse’: high sales and low profit contribution. Therefore. if cared for and fed regularly.Profit Maximization Often popularity and profitability are confused. Menu items can be arranged on a grid – the so called ‘Boston Matrix’ – representing their performance with regard to volume (popularity) and cash contribution (profit). The ‘Dodo’: low sales and low profit. it will require careful study and special attention. It works hard but the profits are not always immediately apparent. Lovable but elusive. get it off your menu. it will take time to reap the full reward from this crop. Probably extinct. The ‘Cuddly Panda’: low sales but high profit.

Maintain value. Low Price: Good Value Sought After Item and Price Does Not Matter Low Price But Uninteresting Tempting But Overpriced Evaluation The Plough Horse Tempting. 38 . Is this an old product in decline? Can it be revamped? Is it a new product that needs attention? If both cash contribution and volume remain low. Careful price increases through enhanced benefits and added value. but overpriced.Profit Improvement Strategy Profit maybe enhanced by manoeuvring ‘cash cow’ menu items towards the top right of the grid. raw material etc. but uninteresting. Good Value. price does not matter. Try repackaging and / or linking The Cash Cow Sought after item. As shown in the example below. Warrants further promotion and merchandising with prime menu position. However. Price increases but with caution The Dodo Low price. re-style and / or add value. The Cuddly Panda Low Price. Re-appraise. review costs and portion size. research (market.) and try a variety of options. Increase promotions. it may be wise to eliminate this product. when considering strategies / tactics be aware of the potential effects and possible consequences.

Promotions Promotions should only be undertaken when there is an opportunity to make incremental sales over and above normal business volumes or when you want to drive ‘cash cows’ and ‘cuddly pandas’ to make incremental profits. The thinking behind this is that the customer must consume the menu items that you specify at a cost you can control. If you have a food cost management problem do not run a promotion if it means buying in extra menu items over and above your norm. Promotions should be staged from within the normal operation of the business. that will facilitate the ‘cash cow’ syndrome or menu items that need to be sold before expiry dates which are ‘cuddly pandas’ or ‘dodos’. Table d’Hote and Inclusive Menus When writing Table d’Hote or inclusive menus always use ‘Cuddly Pandas’. The only proviso to this is when a new menu or menu items are being introduced and a sales drive is required to initiate customer awareness. Specials Specials are items that the Chef is able to purchase at a more competitive ‘oneoff price’. 39 . Do not put high sales and low profit ‘plough horses’ on promotion.

Hilton is rapidly expanding its leisure market. When budgeting it is an unrealistic assumption that the food cost should remain the same for every accounting period. unless the manual is used correctly it will not be an aid to budgeting. Your 30% total should be made up of 12 food costs of differing amounts! When budgeting for the next financial year you should use all available data from the EPOS. If you do not react your food cost will automatically move upwards. Your budgets should reflect the monthly movement in sales mix. Take into account possible movements in rooms business mix. food cost budgeting should become easier and more accurate for the hotel. sales mix analysis.Budgeting As an outcome of the use of this Best Practice manual. more and more sleepers will be on low priced inclusive breakfast and dinner packages. Therefore. menu costing and profit maximization exercises to set a realistically achievable budget that fits with your business needs. if for example the hotel is looking to attain an annual food cost of 30% it is unrealistic to have 12 accounting periods saying that they will all be at 30% cost. However. Therefore. 40 . Food costs could vary dependant upon the hotel and time of year. from 18 – 35% per period. If it does not your year end budgeted food cost will be impossible to achieve.

Control and Wastage ! ! ! ! ! ! ! ! Par Stocks Must Stocks Ordering – The Purchase Cycle Receiving and Goods In Storage Security and Key Control Out of Hours Policy Wastage and Out of Date Stock This Section Contains KPI’s • • • Controlled Ordering Procedure in Place Controlled Receiving and Storage Procedure in Place Recorded Wastage Procedure In Place 41 . Storage. Receiving.Ordering.

Par stocks should be based upon a maximum of 4 days trading per average. It is Best Practice that the hotel works with a recorded par food stock. Food product orders should be based on the forecast of customer consumption. For standard products work out by monitoring consumption over a monthly period and dividing by the number of days. If you use 600 loaves of bread over 30 days you consume an average of 30 per day. Christmas or quieter periods such as January. Micros sales information on mix and volume must be used regularly to check actual consumptions. Example 1. Too much stock will lead to wastage. Too little will lead to panic buying or customers not having the correct product available. All Hilton nominated food suppliers deliver at least twice a week. i.e. If relevant this should be per outlet. A par stock is the minimum number of any product that should be kept at any one time for normal trading patterns. The Par Stock must be flexible depending on volumes and menu sales mix forecast and time of year. but are not limited to a) b) c) d) e) f) Tinned / Dry Frozen Breakfast Goods such as Preserves and Bacon etc Juices Breads Staple menu items such as Sirloin Steaks Consider when setting par stocks what size or weight of product needs to be purchased. Food products requiring a par stock are. Build in a 10% error factor for unexpected rises in business and you should hold 33 loaves. Can a smaller size be bought or can it be purchased less frequently? Review par stocks as business demand changes. If you receive 3 deliveries a week then 231 loaves are required weekly or 77 per delivery. 42 .Par Stocks Par Stocks are one of the most effective tools in food cost management.

Combine your orders and try to negotiate a better price with the supplier.Must Stocks For food the must stocks are items that appear daily on your menus. consistency and contractual requirements. Can an alternative be used without compromising on standards? Remember that food cost profit should be the first consideration in menu planning. Regularly review invoices to see what is being bought. Use it at the time! This saves cost! Items that do not appear on your menu should not be purchased. received and stored by the same person. Do not use it up after. do not order 20 per day. 43 . ordered. Fois Gras and Saffron etc. that invoices and control measures are audited for irregularities at least by-weekly. restaurants and staff. It is Best Practice that if food is specified. These should adhere to specification for quality. Do not order separately for banqueting. Carefully consider the purchase and use of luxury items such as Caviar. However you should question the amount that you order. If you only average sales of 5 Fillet Steaks per night.

• Supplier Schedule – • A supplier delivery schedule should be on display in the kitchen at all times to ensure that all kitchen personnel are aware of cut off dates for orders. as this will lessen the chance of supplier shortage and having to source alternative orders at a premium cost. This will alleviate the need to use local suppliers and petty cash if a cut off point is missed due to holidays or sickness. In many cases two suppliers have been set up for each hotel for a particular food type grouping.Ordering – The Purchase Cycle Aim The process of ordering sufficient food stocks to meet immediate business requirements. specification and product code when possible are entered on to the order sheets. as this will help whoever receives goods to check for accuracy of delivery. Order Sheets – • Supplier order sheets should be prepared before ordering with a supplier and kept on file to ensure that deliveries are as requested. Ensure that the agreed price. It is Best Practice that individual supplier order sheets are used. Do not rely on answer phones for suppliers. Any queries regarding nominated suppliers should be directed to The Food Supply Chain Executive. at Maple Court. 44 . Try to order as early as possible or give plenty of notice for large orders. It is Best Practice that these suppliers must be adhered to when purchasing food products. as there is no guarantee that your order has been accepted or that product availability has been checked. which will lessen the possibility of wastage through over ordering. Success Criteria a) All orders will fulfill the business requirements. It is essential to use price lists from each of these suppliers to obtain the most competitive price for a particular order. b) All commodities will be the best value for money. Nominated Suppliers – • Use the list of nominated food suppliers as agreed with HUKI Purchasing Department. Use of order sheets will ensure that contents of stores and fridges will be checked. ensuring the freshness and quality of all produce and commodities.

45 . d) Optimum use of deliveries from each supplier.c) Purchasing specifications are being adhered to. f) Continuity of produce standard is maintained. e) HUKI Group discounts are maximized.

fish and vegetables are weighed on delivery. past their sell by date or of a lower grade than ordered. temperature and quantity against the order and delivery note. It is Best Practice that as a minimum all meat. to the specifications required. Temperature Checks – • Temperature checks must be carried out on all chilled products. quality.Receiving and Goods In Aim All commodities to be delivered at a time. Credit Notes – • If there is a discrepancy between the goods delivered and the order sheet produced by the Chef then a credit note or goods returned note must be obtained from the delivery company driver. Any deviations from the delivery note should be recorded on a credit note / goods returned note. Weights & Measures – • All deliveries must be checked against delivery notes and order sheets to ensure that quantities and specification delivered match those that are charged for. 46 . Delivery notes – • Must be obtained for every food delivery and entered onto a purchases received sheet in the main kitchen which can be cross matched with all food invoices processed on Oracle by the hotel Accounts Office. Grade & Quality – • All deliveries should be checked to ensure that no products are damaged. (See food safety hazard analysis document by Safety Risk Management for minimum standards). Any deviations from the delivery note should be recorded on a credit note / goods returned note. which will facilitate correct checking and monitoring of produce for weight. An appropriate set of scales should be available to ensure all weights match delivery notes. Both parties must sign these.

d) No leakage of monies due to non-conformity of prices. It is Best Practice that the Head Chef has overall control and is fully responsible for purchasing and stores. c) Suppliers are meeting hotel business demands. 47 . b) Food health and safety regulations are adhered to.Please refer to the food safety hazard analysis manual to ensure that all health and safety regulations are being adhered to as outlined by Safety Risk Management at Cadogan Square. quantity and quality by suppliers. Success Criteria a) Guests receive a continuous high standard of fresh produce.

Date coding guns and labels can be purchased through a nominated supplier recommended by Safety Risk Management at Cadogan Square Temperature Checks – • Must be adhered to as set out by the Safety Risk Management department at Cadogan Square. • Please refer to Food Safety Hazard Analysis Manual to ensure that all health and safety regulations are being adhered to as outlined by Safety Risk Management dept. Storage – • All foods should be stored as recommended by suppliers and in adherence to the guidelines set down by Safety Risk Management department. with the minimum loss arising from either wastage or spoilage. poultry and fish items must be date stamped before storage to ensure that items do not pass their sell by date. Stock Rotation – • To ensure that food items do not have to be thrown away. storage of all food products should be clear and simple with all new stock put to the back of any storage facility. again it is an offence not to temperature check under the Food Safety Act 1990. All foods should be decanted into suitable containers that provide hygienic storage conditions. 48 . All open packets should be decanted and sealed in pest proof containers.Storage Aim To ensure that there is an adequate supply of all food items maintained for immediate use. Date Coding – • All meat. Be aware that it is an offence under the Food Safety Act 1990 to not date code / stamp. Older food should be brought to the front to alleviate any unnecessary wastage.

Success Criteria a) Food health & safety regulations are adhered to. 49 . b) Minimal wastage and spoilage of food produce.

fridges and freezers are locked when not in use. keys and stock. 1) 2) 3) 4) 5) 6) 7) 8) Who can purchase food? Who can receive food goods in? Who stores food? Who reconciles invoices to goods in? Who checks wastage? Who authorises returns? Who authorises allowances? Who is authorised to dispose of OLD stock. 4) A formalised method of control of keys should be in place. 2) All stores. The following is a guideline to best practise. 8) The issuing and receiving departments must sign this. As a reminder Hilton UK & Ireland spend £50m per annum buying food. 5) Keys must be signed in and out. 50 . to ensure that security is maintained to doors. 9) The department and duty managers should make regular checks out of shift. 1) Once goods have been received ensure that they are put away in suitable storage containers.Security and Key Control As we have already said. Hilton Food Cost is an expensive commodity. 7) Any items leaving the stores and kitchen to be transferred to other departments must be requisitioned using the appropriate documentation. It therefore needs to be looked after and be secure. 3) Keys to stores and cold rooms must be kept in the kitchen during shifts and locked away on kitchen close down. Keys should have restricted access. As well as the above points the following should be agreed within the hotel and individuals trained on their own responsibilities. 6) If locks and/or clasps are ill fitting these should be changed or repaired to ensure effective operation. Each hotel needs to put in place security and control measures that best fit its own operational needs. A list of authorised people should be kept with the keys. and the requisition kept for stock taking departments.

Duty Managers. Food and Beverage Manager and Deputies. Our customers do not want to hear this. • • Ensure all food items are cling filmed. A policy needs to be agreed and implemented so as there is control out of hours. Record wastage. 3) To prevent pilferage. Security. make sure that they are brought in and samples of appropriate foods have been taken and recorded in the food sampling folder. • 51 .Out of Hours Policy As hotels are a 24-hour operation it is impossible for our kitchens to be always fully stocked and because of the needs and requests of customers from time to time we will need to requisition from the stores. soup. outside normal opening hours. Management Trainees. At least 2 people should be present when making out of hours requisitions 1) To check stock issues for quantity. date stamped (with 2-day shelf life) and refrigerated. It should be trained into staff that each and everyone within the Food and Beverage Department should take responsibility for the control of stores.e. Kitchen Closedown At the end of each working day a formal kitchen closedown procedure should be in place to ensure that not only food hygiene regulations are being adhered to but also that food is correctly stored so it can be used the next day. salad bar etc. People responsible can and should include the following Head Chef and Deputies. i. It is not good enough to say that ‘the stores are closed’. Heads of Department. If any food is still left in the restaurant. Duty Food and Beverage Manager. 2) To check stock issues for conformity.

do you always check that you receive credit notes? It is Best Practice that invoices are not paid until Credit Notes are received. Only authorise stock for disposal as a last resort.Wastage and Out of Date Stock Wastage is the discarded element arising from the inefficient use of resources. On delivery do you check weights? Is a 7oz Chicken Supreme always 7oz or is it 6oz? Therefore forcing you to use more! On delivery do you inspect quality for potential shelf life? Remember if it is not fresh when it comes in. ask questions • • • • • How often am I placing second orders? What food is being thrown away and why? Do my Chef’s know how to carve? Are the restaurant trained in the efficient use of the toaster and coffee machine? Are we cooking properly? (A roast joint sealed properly will not only taste better but the wastage and shrinkage is significantly reduced). Keep wastage to a minimum and order effectively. • • • • • • • 52 . it will not last so long in your stores. It will never be eliminated but can be reduced. Check what you and your Sous Chefs do. Do I regularly review the stores for stock that is either slow moving or will soon be out of date? Do I check expiry dates of goods on receipt? When you return goods to suppliers. It is Best Practice to return inferior quality goods.

• • • • Can they be controlled in any way? Can the staff be trained to waste less? How often during a breakfast service do you check how much coffee and bread is wasted? Undertake a waste control exercise.Consider the following table as an aide-memoir to wastage control. Cause Over Buying Effect Slow Moving Stock Difficulty in Control New Rotations of Stock Higher Prices Quick Deterioration Cure Better Planning Par Stocks for Items Decrease Wastage Better Planning Containers with Lids Don’t Over Order Correct Storage Temp Work to Specs Staff to Understand Weights and Measures Use Measured Dispensers Under or Panic Buying Poor Storage Over Portions Increased Usage Poor Presentation Stock Products A key task when looking to control wastage is to look at your most wasted or biggest wasted items. Empty the refuse bins at the end of service and analyse what has been wasted! 53 .

People • • • • Recruitment and Training Balanced Scorecard Job Sharing and De Skilling Colleague Feeding This section contains KPI’s • • Colleague feeding meeting Hilton People standard Staff training and knowledge 54 .

1) Has the candidate a good command of the language? 2) Has the candidate a good level of mathematical understanding? 3) Has the candidate potential for management development? 4) Will he / she be able to understand and solve reasonably complex business problems given training? 5) Has the candidate the ability to learn and develop under training? 6) Is the candidate responsible enough to take on responsibility? This simple approach will enable the Executive Chef to delegate responsibilities and give accountability to other members of his team. It is Best Practice that all kitchen personnel can calculate a food-selling price given a set cost price. In todays changing environment the Chef is one of the key drivers to business success and profitability. A Head of Department will not achieve this alone.Recruitment and Training One of the most important aspects of today’s Chef is his ability to control and manage costs. Once recruited training is the element that binds everything together. All elements in this document are designed to help achieve Optimum Food Cost. when recruiting for new employees the following needs to be considered. Quite simply check that they can use a weighing scale. it will only be achieved through teamwork and the understanding of all the various areas. It is an essential business need. If in doubt set your new recruits tests that relate to their job function. check that they have an understanding of portion control. ‘Not enough time’ is not an excuse. The misconception when new employees are recruited is that they only need to be able to cook and / or prepare food. check that they can check an invoice. 55 . The more time you expend on the training and development of your team the greater the business success you will achieve. Therefore enabling him to concentrate on the more strategic aspects of the job. therefore.

cutting and slicing Use the skills of the Chef’s to cook and finish.TBS Training Effective Food Cost Control should be included as part of the training and review process within your department. Examples of jobs that can be de-skilled are • • • • Salad Prep and Sandwich Prep Vegetable Prep and Vegetable Cooking And many functions that require basic chopping. It is Best Practice that all kitchen personnel are trained on this manual. It should form a basis for more in depth training in the future. Profit Each is a key-determining factor within your operation and each must take equal importance within your operation. A lot of functions within the food operation can be given to less skilled staff. train and develop Customer – give quality. is it always necessary to recruit skilled Chefs on a full-time basis. analyse the requirements of a job. Customer. 56 . • • People – recruit. As we have said being a Chef is not just about cooking and hygiene. Success will be achieved by placing equal importance on the four core values of • People. However. In the current climate we all know that it is difficult to recruit skilled Chefs. Think about how this could impact on your business. control and reinvest Job Sharing and De-Skilling Before any recruitment takes place. Quality. Balanced Scorecard It could be argued that effective food cost management is related to a balanced scorecard approach as championed by the company. value and respect • • Quality – maintain consistency Profit – develop. With a little training they can undertake a lot of the basic mis-en-place that takes up so much time.

Food & beverage machines – There are currently various machines available from Coca Cola Enterprises Ltd. If your hotel is small and serves a limited amount of staff food the matrix in the food forecasting and planning section should be applied. • • Breakfast – Cereals. vegetables.Colleague Feeding Aim To ensure that quality and choice expectations of all our colleagues are met and the cost of production can be greatly reduced through menu forward planning. salad items. (Typical dishes include: meat or fish with potato. Tea and Coffee Lunch and Dinner – a selection of hot and cold dishes are offered to suit cultural tastes as appropriate and includes a vegetarian option. fresh bread and butter). Toast. Staff feeding will be the same standard as that of our customers. Please contact Group Human Resources Department at Maple Court for standards of staff food required and entitlements for all contract types including live-in staff. Success Criteria a) Colleagues are contented with choice and quality. All dishes are nutritious and wholesome. c) Minimum cost and wastage achieved. A fixed rotational menu will be applied having reflected time of year and ethnic backgrounds. Call Group Purchasing Department at Maple Court for the latest specifications and prices available. 57 . b) Viewpoint result constantly moving forward. vegetarian options. It is Best Practice and the Hilton people standard that colleagues receive as a minimum. cold meats. cheeses.

Revenue Control and Yield Management • • • • • • • • • • • Revenue Control Revenue Capture Reports Schedule Reports Index Covers Definition Nominal Code Definition Food Tracker Stocktaking Table Management and Food Presentation Sharing Information Optimum Food Costing This section contains KPI’s • • • Effective revenue control in place Table Management procedures in place Stocktaking regular and accurate 58 .

Allocations – • These should be in line as per HUKI instructions. Management Account – • All items that are used by management or staff should be authorised and tracked so that the Accounts Office can charge to hotel expenses and credit the food stock account.Revenue Control Aim To ensure we are maximising all food revenue segments and any gross profits associated with them and capturing all relevant data to enable analysis of our business so that we can make strategic and informed decisions. Retrospective Discounts – • These are credited by HUKI for quantities purchased from nominated food suppliers. These can be checked by the Accounts Office through supplier invoice listings reports produced through Oracle financials. A running total should be tracked by the Accounts Office so that these can be reviewed in conjunction with the monthly food cost result and help identify any training needs or issues within departments. Allowances – • All revenue that is allowed off the daily revenue should be documented and authorized by Financial Controller. Promotions / Vouchers – • Any food dishes that are discounted or are free of charge to the customer should be tracked so the Accounts Office can charge the cost to marketing expenses and credit the food stock account. Please contact your Regional Director of Finance for up to date standard allocations. 59 . Epos Analysis – • It is essential that management review all available reports so that business decisions can be based on factual information. Menu choices and planning can be based on actual sales achieved to avoid wastage and spoilage.

d) Mystery customer result standards are achieved through correct billing. Wastage and spoilage can be reduced from dishes that are proven sellers All the above revenue control measures are Best Practice 60 . Please see reports section for a list available. This will help identify if all exclusive guests and additional guests are being charged for. Success Criteria a) All HUKI Group discounts are being maximized through nominated food suppliers. Guest Key Cards – • Staff should examine these for every meal period to ensure that the correct charge is raised to the correct guest. c) Informed decisions can be made from accurate data capture. A review of actual sales reports against forecasted sales will pinpoint any discrepancies. b) All revenue is captured and gross profits are maximized.Reports – • Various Fidelio reports can be printed to help ensure that guest packages are reviewed and can be charged accordingly at different meal periods. There are many Micros reports available to analyze revenue and dish favorites. Lost / Leaked Business – • A cross matching of revenues and covers should be carried out by the kitchen to ensure that numbers charged are the same as numbers that actually dined.

Many control mechanisms are already set up within Fidelio and the various EPOS systems within the company such as Micros and Remanco. rendering any data analysis useless for stocktaking. It is Best Practice that all dishes set up on the EPOS system match the hotel menus and menu prices to eliminate the use of the open food key button. 61 . otherwise use of open food & beverage sales keys will occur. This will enable management to track training needs and sales performances by employee. It is imperative to have an EPOS champion per hotel so that the system database is current and correct for items and prices. open checks and cancelled checks to eliminate any possible foul play and to ensure that staff can be identified if they are having legitimate problems with using the system. menu costing.Revenue Capture To ensure that all food services provided to our guests are charged for it is essential to put in place basic revenue capture measures. It will also ensure that there is a segregation of duties for departmental cashing up. The Management Team should monitor use of voids. It is vital that EPOS systems are used to their full potential by ensuring every employee has their own system key. menu engineering and staff performance incentive schemes. Keys should be assigned with the relevant system responsibilities per employee depending on job title and position. tracking sales trends. Revenue is charged correctly and that all historical data is accurate and will assist in making strategic business decisions based on fact.

At end of shift can only produce a report to enable the balancing of room charges and credit cards. Able to void transactions. Able to void transactions. NOT CASH. Able to post and cash off items. At end of shift can produce a report summary to balance all payment types. Able to post and cash off items. Able to void transactions. Job Title Waiter / Barman Server User Level Definition Able to post and cash off items on the system. At end of shift can produce a report summary to balance all payment types. Able to post and cash off items. Supervisor Supervisory Outlet Manager Management Duty Manager Management Night Auditor Management 62 . Able to post and cash off items. NOT CASH. Able to void transactions. At end of shift can only produce a report to enable balancing of room charges and credit cards.Key Responsibilities Below is a table listing employee responsibilities for the EPOS system. At end of shift can produce a report summary to balance all payment types.

63 . To assist in capturing possible lost revenue it is imperative that there is a line of communication between meeting organisers and hotel staff to ensure that any delegates above the contracted numbers are charged for. You must ensure that a delegate or organiser is presented with a charge docket if they require an extra pot of tea or coffee. This will ensure extra diners are charged and not just processed as inclusive. Many hotels do not have their meeting or banqueting department set up as outlets on their EPOS systems so a manual number cheque pad should be used then posted by Reception. Night Auditor and Income Auditor so that any possible missed revenue can be posted to the guests room account. Restaurant staff should liase with the C&B Sales Department to ensure numbers for lunch and dinner match the final numbers discussed at the “Meet and Greet” with the organiser in the morning. Meal Plan Reports The Fidelio system produces meal plan reports for the breakfast and dinner service periods. This will highlight which guests are on an inclusive package and those who are not. In many hotels a Duty Manager will sign for a pay-in once it has already been completed. This report should be attached to the restaurant pay-in for breakfast and dinner so that reconciliation can be carried out by the Reception Staff.Remember that it is essential that there is “segregation of duties” in place so that no member of staff can reconcile their own cash takings. This is not acceptable as they are only signing to say that the member of staff has reconciled their own takings. Function / Meeting Charges Function and meeting charging should be treated no differently to charges posted to guest bedrooms. The restaurant should use this report to tick off each guest who dines in the restaurant to ensure they are charging all non-inclusive guests for their meals.

g. Are touch screen pads in outlets user friendly for staff to use correctly? Revenue Control 1. Are all employees on system current and have relevant responsibilities? 5. Is a Weekly and Monthly sales forecast issued to the individual outlets? 4. Are delegate numbers checked and recorded in the restaurant or meeting rooms to ensure additional attendees are charged? 5. Is a cup of coffee coded to food sales? 9. Are all items on system set up for the correct sales categories? E. Are all discounts recorded on a Revenue Deduction sheet and credited to Cost of Sale account and debited to Expense accounts? Reports 1. Has the “No Sale” button been removed from the tills? 8. Is a Daily Actual Revenue & Covers report issued to the individual outlets daily? 3. stock values and credits? 6. Are guests asked to produce proof of a signed room key card when ordering items in the F&B outlets? 2. Is a monthly Food Cost result completed and issued to the chef with a full breakdown of revenues. Does the closing stock value generated from the stock sheets match the figure on the Balance Sheet? 2. Open Checks etc? 4. Are daily saves completed by Night Audit? 10. Are Meal Plan reports used to ensure correct charging of inclusive and exclusive diners? Are these reports attached to departmental pay-ins so Night Audit and Income Auditor can check them? 4. Are all menu items on EPOS system and correctly priced? 2. Epos System 1. Is a Daily Food Cost Tracker sheet completed and issued daily to the Management Team? 2. Is chef issued with a General Ledger Account (180 characters) report so he can check all invoices coded. Are reconciliation’s carried out to ensure that revenue matches food orders taken in the kitchen? 3. Are reports generated and monitored for Voids. Are departmental pay-ins authorized and checked by the Management Team with no member of staff being able to reconcile their own cash takings? 7.Financial Responsibilities Checklist Use the following checklist to assess how you are helping the Management Team to successfully control Food Cost Management. Are the Open Food & Beverage keys disabled? 3. Are all Food Invoice Batch headers signed and authorized in accordance with 64 . Are all complimentary items authorized with a Management signature? 6. and credits given for the Food Cost of Sale account? Miscellaneous 1. Are there enough members of the Management Team with good system knowledge in case of sickness or staff turnover? 6. Is a Food Supplier Usage sheet completed and issued daily to the chef? 5.

Are all delivery notes. un-batched invoices & credit notes accrued at month end into the Food Cost of Sale account? 7. Is the chef assisted at month end by a member of the Management Team when counting physical stock? 5. Are the two nominated meat suppliers bidding for business with cheaper prices than their competitor? 65 . Are prices updated regularly on the stock sheets to give a true valuation of the closing stock value? 4. Have you checked that there are full menu costing sheets for every dish served in the hotel and that these have been reviewed quarterly to ensure that they are relevant? 6.“Segregation of Duties”? 3. Are all suppliers used by chef nominated? 8.g. Is there a good mix of use between the two nominated suppliers for a main food grouping to ensure that the hotel is buying at the most competitive price? E.

As stated above a reports schedule should be drawn up and issued for other systems.Reports It is essential that as a business we are able to analyse all available data. Monitor promotions and allowances. Quick pointer for guest names at meal periods to meet Brand Standards. The system manuals should be checked to see what is available and then a table produced for what each hotels individual requirements are. The hotel should be using various reporting tools to help: a) b) c) d) e) f) g) h) Analyse what sells and what does not. The above are fundamental in controlling revenue and cost of sale and should be readily available and utilised by as many departments as possible. Look at voided transactions for security. who needs them and at what time. Reconcile revenues and covers. However the main fundamentals of reporting will be very similar throughout the group. Produce stocktaking results. The following reports section list reports available on Micros. With such a diverse portfolio of hotels encompassing many different food outlets and staff positions it would be wrong to say that one solution will meet all needs. Unfortunately within the portfolio of hotels there are many different IT systems and versions to control our food outlets such as Micros. Remanco. Are all prices on system correct and regularly checked. Fidelio F&B and Uniwell. Show what guest entitlements are per meal period. 66 . This will enable informed decisions to enhance our business. but all of these systems are capable of producing data to help run the business.

main. sides etc… Monthly breakdown of revenue centres Monthly summary of any off line payments Monthly summary of any food discounts given Monthly summary of any beverage discounts given Monthly summary of any transfers between revenue centres Monthly summary of balances in fidelio Monthly summary and business revenue centre Monthly summary as above except by serving period Monthly summary as above except consolidated Monthly breakdown of sales with attributed costs Monthly breakdown of sales with costs by group e.g. starters/sides/mains Monthly report showing by revenue centre menu item costing 67 .Financial Controller Report Schedule Title Revenue Report Off Line Payments Food Discounts Beverage Discounts Outlet Transfers Micros/Fidelio Balance Revenue Centre Financial Serving Period Financial System Financial Payment Employee Closed Check Report Revenue Report Off Line Payments Food Discounts Beverage Discounts Outlet Transfers Micros/Fidelio Balance Revenue Centre Financial Serving Period Financial System Financial Report Major Group Cost Report Family Group Cost Report Revenue Report Off Line Payments Food Discounts Beverage Discounts Outlet Transfers Micros/Fidelio Balance Report Revenue Centre Financial Serving Period Financial System Period Financial Major Group Cost Report Family Group Cost Report Menu Item Cost Report Frequency Daily Daily Daily Daily Daily Daily Daily Daily Daily Daily Daily Weekly Weekly Weekly Weekly Weekly Weekly Weekly Weekly Weekly Weekly Weekly Monthly Monthly Monthly Monthly Monthly Monthly Monthly Monthly Monthly Monthly Monthly Monthly Content Breakdown of revenue centres Any off line payments used Any discounts given on food Any discounts given on beverage Transfers between revenue centres Revenue balances into Fidelio Total days business by revenue centre As above except by serving period As above consolidated All payments that have been used See how checks are opened/closed Weekly breakdown of revenue centres Weekly summary of any off line payments Weekly summary of any food discounts given Weekly summary of any beverage discounts given Weekly summary of transfers between beverage centres Weekly summary of balances in fidelio Weekly summary business by revenue centre Weekly summary as above except by serving period Weekly summary as above except consolidated Weekly breakdown of sales with attributed costs Weekly breakdown of sales with costs in groups starters.

Chef Report Schedule
Title
Food Discounts Revenue Centre Financial Food Discounts Revenue Centre Financial Major Group Cost Report Family Group Cost Report Food Discounts Revenue Centre Financial Major Group Cost Report Family Group Cost Report Menu Item Cost Report

Frequency
Daily Daily Weekly Weekly Weekly Weekly Monthly Monthly Monthly Monthly Monthly

Content
Any discounts given on food Total days business by Revenue centre Weekly breakdown of any food discounts Weekly summary of business by revenue centre Weekly breakdown of sales with attributed costs Weekly breakdown of sales with costs in groups e.g. starters/main/sides etc… Monthly summary of any food discounts given Monthly summary of business by revenue centre Monthly breakdown of sales with attributed costs Monthly breakdown of sales with costs by group e.g. starters/sides/mains etc… Monthly report showing by revenue centre menu item costing

Food and Beverage Manager Report Schedule
Title
Food Discounts Beverage Discounts Revenue Centre Financial Food Discounts Beverage Discounts Revenue Centre Financial Major Group Cost Report Family Group Cost Report Food Discounts Beverage Discounts Revenue Centre Financial Major Group Cost Report Family Group Cost Report Menu Item Cost Report

Frequency
Daily Daily Daily Weekly Weekly Weekly Weekly Weekly Monthly Monthly Monthly Monthly Monthly Monthly

Content
Any discounts given on food Any discounts given on beverage Total days business by Revenue centre Weekly breakdown of any food discounts given Weekly breakdown of any beverage discounts given Weekly summary of business by revenue centre Weekly breakdown of sales with attributed costs Weekly breakdown of sales with costs in groups e.g. starters/main/sides etc… Monthly summary of any food discounts given Monthly summary of any beverage discounts given Monthly summary of business by revenue centre Monthly breakdown of sales with attributed costs Monthly breakdown of sales with costs by group e.g. starters/sides/mains etc… Monthly report showing by revenue centre menu item costing

68

Bars Manager Report Schedule
Title
Beverage Discounts Revenue Centre Financial Beverage Discounts Revenue Centre Financial Major Group Cost Report Family Group Cost Report Beverage Discounts Revenue Centre Financial Major Group Cost Report Family Group Cost Report Menu Item Cost Report

Frequency
Daily Daily Weekly Weekly Weekly Weekly Monthly Monthly Monthly Monthly Monthly

Content
Any discounts given on beverage Total days business by Revenue centre Weekly breakdown of any beverage discounts given Weekly summary of business by revenue centre Weekly breakdown of sales with attributed costs Weekly breakdown of sales with costs in groups e.g. starters/main/sides etc… Monthly summary of any beverage discounts given Monthly summary of business by revenue centre Monthly breakdown of sales with attributed costs Monthly breakdown of sales with costs by group e.g. starters/sides/mains etc… Monthly report showing by revenue centre menu item costing

Restaurant Manager Reports Schedule
Title
Food Discounts Beverage Discounts Revenue Centre Financial Food Discounts Beverage Discounts Revenue Centre Financial Major Group Cost Report Family Group Cost Report Food Discounts Beverage Discounts Revenue Centre Financial Major Group Cost Report Family Group Cost Report Menu Item Cost Report

Frequency
Daily Daily Daily Weekly Weekly Weekly Weekly Weekly Monthly Monthly Monthly Monthly Monthly Monthly

Content
Any discounts given on food Any discounts given on beverage Total days business by Revenue centre Weekly breakdown of any food discounts given Weekly breakdown of any beverage discounts given Weekly summary of business by revenue centre Weekly breakdown of sales with attributed costs Weekly breakdown of sales with costs in groups e.g. starters/main/sides etc… Monthly summary of any food discounts given Monthly summary of any beverage discounts given Monthly summary of business by revenue centre Monthly breakdown of sales with attributed costs Monthly breakdown of sales with costs by group e.g. starters/sides/mains etc… Monthly report showing by revenue centre menu item costing

69

Index

Daily Reports
-

Overview of reports and who should receive the reports that can be pulled off by the Night Auditor at the end of the day.

Weekly Reports Overview of reports and who should receive the reports that can be pulled off by the Night Auditor at the end of the week. (There are two additional reports from those pulled off on a daily basis).

Monthly Reports Overview of reports and who should receive the reports that can be pulled off by the Night Auditor at the end of the week. (There is one additional report from those pulled off on a daily basis).

Miscellaneous Reports Overview of additional miscellaneous reports, which can be used by various Heads of Departments

70

Daily Micros Reports The reports in the following section are printed every night by the Night Auditor. Examples of some of these reports can be found in the appendix. This section identifies the areas of importance that should be looked at and who should be using them. 71 .

Bar. 6. The revenue on this report should be posted manually into Fidelio. food. The revenue centres and meal periods are shown down the left hand side of the report. The revenue shown is broken down further into meal periods of the different revenue centres.System Wide This report shows any offline payments that have been used. 3.Major Group OffLine Payments .Offline payments should only be made when the interface between Micros and Fidelio is down. The final column shows the number of covers for a revenue centre. Mgr FC/F&B Mgr/Bars Mgr FC FC/GM/MPM FC/Rest Mgr/Bars Mgr/F&B Mgr/Chef FC FC FC 1.System Wide .g. Business Privilege). cheque etc) Points to note . tobacco/miscellaneous and tips.System Wide This report shows revenue. cash. beverage.System Wide Revenue Centre Financial Report Serving Period Financial Report System Financial Report . 3.System Wide Beverage Discounts .System Wide Outlet Transfers . Within each revenue centre/meal period you can see the major groups (e.System Wide Micros/Fidelio Balance Report . wine.g.g. 4. Room Service and Conference and Banqueting). 2. 72 . 9.Daily Reports 1. 7. by revenue centres (e. Restaurant.g. 5. 10. by meal period Points to note - 2. Food Discount Report . and the different types of offline payments are shown going across the report (e. and the different discount types are shown going across the report (e. Offline Payments .System Wide Food Discounts . HR11.System Wide This report shows any food discounts that have been given The revenue centres and meal periods are shown down the left hand side of the report. Report Name Revenue Report .System Wide Payment Report To Whom FC/Hotel Micros Project Mgr (MPM) FC FC/Chef/F&B Mgr/Rest. 8. Revenue Report .

number of checks and average spend per check. Revenue Centre Financial Report .4. The report is split with a new sales total figure. menu item voids) can also be seen in this report 7. beverage. service charge. checks that have begun.Revenue Centre Wide This report shows the total business by day for that particular revenue centre. tobacco/miscellaneous and tips. error correct totals and no sales count.Error corrects and cancels should be checked to assess training needs. food and service quality and possible training needs. Across the report shows revenue by major groups (food. The report is a full breakdown which incorporates net sales. number of guests. This information includes payments. . Transfers in/out. Business Privilege). and the transfers in/transfers out are shown going across the report 6. discounts. The revenue centres and meal periods are shown down the left hand side of the report. The breakdown at the bottom of the report is the same information that the User pulls off at the end of shift report to cash up. and the different discount types are shown going across the report (e. wine.System Wide This report shows the balance which has been posted into Micros to Fidelio. 73 . These are extracted from the Fidelio balance. The column showing inclusives should be looked at and analyzed carefully.System Wide This report shows any beverage discounts that have been given The revenue centres and meal periods are shown down the left hand side of the report. with a total revenue column. The revenue centres and meal periods are shown down the left hand side of the report.Voids should be checked on a daily basis to assess lost revenue.System Wide This report shows any transfers that have been made from one revenue centre to another. and total sales. Beverage Discount Report . HR11. transferred in. voids. Other information includes cancel totals. paid and transferred out. Micros/Fidelio Balance Report . covers and voids (voids from previous rounds in the Bar. discounts. 5. Points to note . Outlet Transfers .g. average spend per guest. total revenue.

If there are any concerns regarding the previous points then this report should be checked to see which shifts are the cause. 9. This information is by serving periods. and the different types of payment are shown going across the report (e. cash. Payment Report . Serving Period Financial Report . cheque etc) 74 . This information is for the system.8.This information assess results by individual shifts.g.By Shift The information shown in this report is laid out identically to that in the revenue centre financial report (7). Points to note . 10. The revenue centres and meal periods are shown down the left hand side of the report. System Financial Report .System Wide The information shown in this report is laid out identically to that in the revenue centre financial report (7).System Wide This report shows any payments that have been used.

This allows us to compare food & beverage results on Micros with those posted onto Fidelio.Weekly Micros Reports Weekly Micros reports should be printed on the Thursday night each week after the end of day reports. 75 . Examples of some of these reports can be found in the appendix.

Revenue Report . Food Discount Report – System Wide This report shows any food discounts that have been given The revenue centres and meal periods are shown down the left hand side of the report. 11. 4.System Wide Food Discounts . Revenue Report .g.System Wide . Restaurant. and the different types of offline payments are shown going across the report (e. wine.Major Group OffLine Payments .Revenue Centre Wide To Whom FC/Hotel Micros Project Mgr (MPM) FC FC/Chef/F&B Mgr/Rest. The revenue centres and meal periods are shown down the left hand side of the report.System Wide Revenue Centre Financial Report Serving Period Financial Report System Financial Report . Mgr FC/F&B Mgr/Bars Mgr FC FC/GM/MPM FC/Rest Mgr/Bars Mgr/F&B Mgr/Chef FC FC GM/FC/Chef/F&B Mgr/Bars Mgr/ Rest Mgr GM/FC/Chef/F&B Mgr/Bars Mgr/ Rest Mgr 1.System Wide Major Group Cost Report . Offline Payments . HR11. If this report is showing offline payments. 3. Business Privilege). 7.Revenue Centre Wide Family Group Cost Report . it should be checked very carefully the reason for these. cheque etc) 3. cash.g. Within each revenue centre/meal period you can see the major groups (e. 10.System Wide This report shows any offline payments that have been used. 76 . 5.System Wide Outlet Transfers . tobacco/miscellaneous. It should be noted that offline payments should only be made when the Front Office interface is down. The revenue shown is broken down further into meal periods of the different revenue centres.Weekly Reports Report Name 1. Bar. and tips The final column shows the number of covers for a revenue centre. and the different discount types are shown going across the report (e.System Wide Beverage Discounts . 2. 9.System Wide This report shows revenue. 8. Room Service and Conference and Banqueting). beverage.System Wide Micros/Fidelio Balance Report . by meal period 2. by revenue centres (e. food.g. 6.g.

error correct totals and no sales count. Business Privilege). HR11. is the same information that the user pulls off at the end of shift report to cash up. checks that have begun. which has been posted into Micros to Fidelio. 5. The report is split with a new sales total figure. Beverage Discount Report . 8. menu item voids) can also be seen in this report 7. This information includes payments.By Shift The information shown in this report is laid out identically to that in the revenue centre financial report (7). These are extracted from the Fidelio balance.Revenue Centre Wide This report shows the total business by day for that particular revenue centre. Transfers in/out. The column showing inclusives should be looked at and analyzed carefully. with a total revenue column. Outlet Transfers . and the transfers in/transfers out are shown going across the report 6. returns. wine. average spend per guest. discounts and total sales. covers and voids (voids from previous rounds in the Bar. Revenue Centre Financial Report . Across the report shows revenue by major groups (food.4. The revenue centres and meal periods are shown down the left hand side of the report. total revenue.System Wide This report shows any beverage discounts that have been given The revenue centres and meal periods are shown down the left hand side of the report. number of guests.System Wide This report shows the balance. The revenue centres and meal periods are shown down the left hand side of the report. The report is a full breakdown. service charge. Serving Period Financial Report .g. transferred in. beverage. which incorporates net sales. This information is by serving periods 77 . discounts. Other information includes cancel totals. voids.System Wide This report shows any transfers that have been made from one revenue centre to another. tobacco/miscellaneous and tips. Micros/Fidelio Balance Report . number of checks and average spend per check. The breakdown at the bottom of the report. paid and transferred out. and the different discount types are shown going across the report (e.

beverage. grills.Revenue Centre Wide This report highlights costs by the major groups (food. whiskey. wine. together with the weekly gross margins.g. with sub totals underneath each major group shown. The weekly sales figures are shown in the first column. 11. tobacco/miscellaneous) The major groups are shown down the left hand side of the report. followed by the sales mix percentage. The following two reports are additional reports that are pulled off weekly 10. This information is for the system. Other information shown at the bottom of the report includes the total sales count.9. mains.Revenue Centre Wide The information shown in this report is in an identical format to the major group cost report (10). total preparation count and total preparation cost. The weekly costings. soft drinks etc. This is for the family groups within the system e.System Wide The information shown in this report is laid out identically to that in the revenue centre financial report (7). together with the weekly cost mix percentage are then shown. total gross sales. Family Group Cost Report . 78 . starters. Major Group Cost Report . System Financial Report .

Examples of some of these reports can be found in the appendix.Monthly Micros Reports Monthly Micros reports should be printed on the last day of every month. 79 . which can be used to assess the performance of the food & beverage team. These reports consolidate each day’s information into one final selection of reports.

9. by revenue centres (e. wine.Monthly Reports Report Name 1.Revenue Centre Wide To Whom FC/Hotel Micros Project Mgr (MPM) FC FC/Chef/F&B Mgr/Rest.Revenue Centre Wide Menu Item Cost Report .g.System Wide . 11. cash. Food Discount Report .System Wide Outlet Transfers . tobacco/miscellaneous. and the different types of offline payments are shown going across the report (e.System Wide This report shows any offline payments that have been used.System Wide Revenue Centre Financial Report Serving Period Financial Report System Financial Report . Room Service and Conference and Banqueting). 4. 5. HR11. cheque etc) 3. beverage. 80 . It should be noted that offline payments should only be made when the front office interface is down. Business Privilege. food.System Wide Beverage Discounts .g. Within each revenue centre/meal period you can see the major groups (e. Revenue Report .System Wide Major Group Cost Report .System Wide Food Discounts . it should be checked very carefully the reason for these. by meal period 2.System Wide Micros/Fidelio Balance Report . Offline Payments .Major Group OffLine Payments .Revenue Centre Wide Family Group Cost Report .System Wide This report shows any food discounts that have been given The revenue centres and meal periods are shown down the left hand side of the report. and tips The final column shows the number of covers for a revenue centre.g. 10. The revenue centres and meal periods are shown down the left hand side of the report. 6. 2. Restaurant.System Wide This report shows revenue. 12.g. Revenue Report . Mgr FC/F&B Mgr/Bars Mgr FC FC/GM/MPM FC/Rest Mgr/Bars Mgr/F&B Mgr/Chef FC FC GM/FC/Chef/Bars Mgr/Rest Mgr/F&B Mgr GM/FC/Chef/Bars Mgr/Rest Mgr/F&B Mgr GM/FC/Chef/Bars Mgr/Rest Mgr/F&B Mgr 1. Bar. 8. If this report is showing offline payments. and the different discount types are shown going across the report (e. The revenue shown is broken down further into meal periods of the different revenue centres. 7.

and the different discount types are shown going across the report (e. checks that have begun. Revenue Centre Financial Report . with a total revenue column. number of guests. average spend per guest. and total sales.Revenue Centre Wide This report shows the total business by day for that particular revenue centre. covers and voids (voids from previous rounds in the Bar. The breakdown at the bottom of the report is the same information that the user pulls off at the end of shift report to cash up. The revenue centres and meal periods are shown down the left hand side of the report. This information includes payments. This information is by serving periods 81 . discounts.System Wide This report shows any beverage discounts that have been given The revenue centres and meal periods are shown down the left hand side of the report. Serving Period Financial Report – By Shift The information shown in this report is laid out identically to that in the revenue centre financial report (7). 8. voids. Other information includes cancel totals. total revenue. beverage. HR11. paid and transferred out. Business Privilege. Transfers in/out. The report is split with a new sales total figure. The report is a full breakdown. wine. discounts. error correct totals and no sales count. which has been posted into Micros to Fidelio. 5.System Wide This report shows any transfers that have been made from one revenue centre to another. service charge.System Wide This report shows the balance. which incorporates net sales. The column showing inclusives should be looked at and analyzed carefully. Outlet Transfers . Micros/Fidelio Balance Report . Across the report shows revenue by major groups (food. transferred in. returns. These are extracted from the Fidelio balance.g. menu item voids) can also be seen in this report 7. tobacco/miscellaneous and tips. and the transfers in/transfers out are shown going across the report 6. number of checks and average spend per check.4. Beverage Discount Report . The revenue centres and meal periods are shown down the left hand side of the report.

System Wide The information shown in this report is laid out identically to that in the revenue centre financial report (7). together with the weekly cost mix percentage are then shown. 10. The weekly costings. price. wine. This information is for the system. monthly quantity percentage. The following report is an additional report that is pulled off monthly 12.Revenue Centre Wide The information shown in this report is in an identical format to the major group cost report (10). This is for the family groups within the system e. monthly cost mix percentage and monthly gross margins 82 .9.Revenue Centre Wide This report shows by revenue centre a menu item costing for each menu item that is in that particular revenue centre. monthly quantity sold. The weekly sales figures are shown in the first column. beverage. menu item cost. whiskey. monthly sales mix percentage. total gross sales. monthly cost total. The columns across the top of the report show from left to right. Other information shown at the bottom of the report includes the total sales count. with sub totals underneath each major group shown. followed by the sales mix percentage. grills.g. together with the weekly gross margins. The menu items/record number is shown down the left hand side of the report.Revenue Centre Wide This report highlights costs by the major groups (food. monthly sales totals of that particular item. System Financial Report . Major Group Cost Report . monthly quantity cost percentage. Menu Item Cost Report . mains. Family Group Cost Report . soft drinks etc. starters. total preparation count and total preparation cost. monthly quantity prepared. tobacco/miscellaneous) The major groups are shown down the left hand side of the report. 11.

Miscellaneous Micros Reports There are a number of miscellaneous reports available in Micros. 83 . There is also the opportunity to have other reports programmed for specific needs. Examples of the following reports can be found in the appendix.

Quantity of the item that has been prepared by the Kitchen 8) Current Cost Total .Quantity of that particular item that has been sold 3) Current Sales Total .Percentage as a sales figure against the total mix 6) Item Cost . FC. GM. G.Qty prepared x item cost 9) Current Qty % . B.Percentage as a quantity against the total mix C.Selling price of the item 2) Current Qty Sold . Restaurant/Bars Mgr Restaurant/Bars Mgr Restaurant/Bars Mgr A. FC. System Menu Item Sales Report This report shows the same information. GM. F.Selling price x the quantity sold 4) Current Qty % . C.Miscellaneous Reports Report Name A. FC. The columns across the report are as follows: 1) Price .g. Revenue Centre Item Sales Report Revenue Centre Item Cost Report System Menu Item Sales Report Menu Engineering Report Employee Closed Check Report Employee Financial Report Time Period Summary To Whom Chef. E. Restaurant/Bars Mgr Chef. This report is for the whole of the system rather than one particular revenue centre 84 . Revenue Centre Item Sales Report B. FC. D.Percentage as a quantity against the total mix 5) Current Sales Mix % . GM. Restaurant/Bars Mgr Chef. in the same format as reports 1&2 above. restaurant The menu item number and menu item names are shown down the left hand side of the report. Restaurant/Bars Mgr FC. You can select all of the revenue centres (system wide) or one particular revenue centre e.If the costings of the items have been put in the price file in the configuration these will show in this column 7) Current Qty Prep . Revenue Centre Item Cost Report These reports highlight the menu items sold by revenue centre. GM. Restaurant/Bars Mgr Chef.

Quantity of the item that has been prepared by the Kitchen 8) Prep Cost . This report is used by the Night Auditor/Supervisor if there are any problems with balancing at the end of shift/night.Number of guests/covers on the bill (d) Open/Closed .Total sales minus the preparation cost 10) Item CM .Item sales minus the preparation cost 11) Category .low GP). average spend per guest. discounts. 85 . The breakdown at the bottom of the report. there will be a 2/3 in this column (c) Guests . Menu Engineering Report This report gives the Chef/F&B Operators a breakdown of each menu item.Menu mix as a % 3) Sales Total . The report is a full breakdown. checks that have begun.high GP). service charge.Table number which the check was opened to (b) Group . This information includes payments. paid and transferred out. Puzzle (high sales . number of checks and average spend per check. if there are two people sharing the bill.g.Menu Contribution Margin .e.high GP).Star (high sales . The columns across the report are as follows: (a) Table . number of guests. The columns across the report are as follows: 1) Current Qty Sold .Qty Prepared x item cost 9) Menu CM .low GP).Percentage as a sales figure against the total mix 5) Qty Prep .Total sales of that particular item 4) Sales Mix % . and total sales. Plow horse (low sales . Dog (low sales .this is where the waiter would put in a tip payment (I) Payments . error correct totals and no sales count. total revenue.Used when a bill has been split .Self explanatory (g) Auto SvcChg . The report is split with a new sales total figure.How many times the check has been printed (f) Sub Total . This report is useful for Restaurant/Bars Managers when trying to track sales by employees for sales races. Restaurant The menu item number and menu item names are shown down the left hand side of the report.D.Quantity of that particular item that has been sold 2) MM % .should have zeros in this field (we do not use auto service charges) (h) Svc Charge . discounts. The Micros Check numbers are shown going down the left hand side of the report. which incorporates net sales.the total amount due is shown here together with the payment method F. is the same information that the user pulls off at the end of shift report to cash up. You can select all of the revenue centres (system wide) or one particular revenue centre e. A Financial Controller/Restaurant Manager can see exactly how the checks are being opened/closed by this report.g. Other information includes cancel totals.Date and time the check was opened/closed (e) Prt . E. Employee Closed Check Report This report is one of the most useful and powerful reports in the system.Item Contribution Margin . Employee Financial Report This report shows the total revenue generated by each employee. voids. returns. transferred in.

A Restaurant / Bars Manager can see at a glance when the Restaurant / Bar or Room Service is at its busiest and quietest. By doing this we can see sales peaks and troughs and understand our busiest and quietest periods during the day. 86 . Time Period Summary Report With the advent of the new working time directive this report will become particularly important when scheduling staff. reducing labour cost without impacting on service quality.G. By using this report and by multi-skilling staff we are able to schedule staff to the optimum. The figures on this report are easier to understand when put onto an excel spreadsheet and placed into graph format.

for breakfast.00pm until 11. This includes single services of tea and coffee.00pm until 11.00am until 6. lunch and dinner. Lounge. Dinner • Any cover / person served a meal in the restaurant during the period 6. Where guests order multiple teas and coffees. English or Continental breakfast served within the Restaurant up until 11.00 am.00 am and 11. Restaurant 2 / 3 / 4 As Restaurant 1.00pm.00 am until 6pm Dinner • Any cover as per breakfast served 6. Bar and Caffe Cino Food (not second restaurant) Breakfast • Any cover / person served from this area between 6.00pm 87 . Lunch • Any cover as per breakfast served 11.00 am or EPOS closure whichever is the latest. Deli.00pm or EPOS closure as above.Covers Definition Brand Standard = any person ordering a food menu item including tea and coffee Restaurant 1 Breakfast • Lunch • Any cover / person served a meal in the restaurant during the period 11. this should be treated as 1 cover per person.

00am until 11. Dinner • As lunch except between 6.00am until 6. which are a lunch or dinner item.00pm. NB.00am until 4.00am until 11.Functions and Banqueting Breakfast • Any person having food served to them as a restaurant breakfast in a banqueting or conference room 6.e. Buffets in Lobby’s etc). Lunch • Any person having food served to them in a banquet room or function related area (ie.00 am. This does not include sandwiches. This excludes just tea and coffee. teas. pre packed crisps and snacks.00pm and 11.pm Others Tea and coffee served in a function room or lobby or other related area throughout the day and including nibbles and canapés.00am Bar 1 Food and nibbles served over the bar counter and charged for i. coffees).00am Other Covers • Any food served in a guest bedroom from 11. offered with beverages (alcohol. Room Service Breakfast • Any food served in a guest bedroom from 4. Other Food Sales • • Any Night Porter food served in public areas excluding guest bedrooms Any outside catering revenue 88 . 11.

lunch. i. It is Best Practice that contracts are signed for minimum numbers.Non-Cover Sales • • • Any food consumed on a complimentary basis Aircrew welcome lounges Executive and / or Club Lounges.e. It is important that it is identified and trained into team members that covers need to be accurately recorded in order to track average spend and judge volume of business for staffing etc. Ensure during banquets and functions that minimum numbers of covers are charged for. morning coffee. 89 . afternoon tea is equal to 3 covers. Day and 24-hour delegates who have multiple servings of food items should be recorded as 1 cover per item served. and that minimum numbers are charged without fail.

all takeaway food and all outside catering. Banqueting Food Other • Tea. Food served between the stated opening times of 11. and canapés served throughout the day. coffee. 90 . Food served between the stated opening times of 6. Lunch • Dinner • Banqueting Food • As above per service period.00pm.00am until 11. This includes the value of food served with inclusive packages.Nominal Code Definitions Food Sales Breakfast • Food served between the stated opening hours of 6. nibbles.00am and 11.00pm. Other Catering • All Night Porter food (ex room service).00am and 6. Room Service Other Revenue • Bar Food • Food served as per Restaurant lunch and dinner Food served throughout the day or night except room service breakfast served 4.00am.00pm and 11.00am. This includes the value of food served with inclusive packages. This includes the value of food supplied with inclusive packages.

7) The food tracker does not take into account the movement in stock levels or stock valuation. However the following should be noted and may cause adverse effects if not controlled properly 1) Revenues will rise and fall with additional and rebated charges.Food Tracker Once planning. Regularly liase with Stores and Purchasing to see that all invoices are in place / received. 2) Credit notes will reduce costs. preparation and menu sales are complete. Regularly liase with the Finance Department to see that revenues and invoicing are up to date. 6) Management and entertainment figures may only be entered monthly. A useful tool for this is a food tracker. In order to optimise use of the food tracker a weekly target of cost against revenue should be set in order to have controlled expenditure. in order to track your performance you must have a tool to combine all of your component parts. which will give you a rough estimation of week. dairy etc) and monitored against average consumption. fish. See appendices. If all the information in the example is used and data is up to date then a reasonably accurate picture should be built of the running months food cost. or month to date food cost%. 5) Invoice prices should be checked for accuracy against price list and purchasing manual. 91 . 3) Un-accrued invoices from previous periods will raise costs. 8) Invoices should be broken down into categories (meat. (Any awaiting credits should be made clear on delivery notes). delivery. 4) Invoices not received for delivered and used goods will reduce costs. It is Best Practice to use a food tracker system.

jars. The best way to ensure an accurate result is to maintain a consistent approach. Count in • • ¼. it is the Pounds £ that are important. ½. During all stock takes you must understand that you will never get a 100% accurate result as a) stock moves and b) you will always miss something. Whole kilos. bags and boxes etc. Stock should be counted in the same units and given the same value as that stated on the suppliers delivery invoice.Stocktaking Aim To provide a true and auditable value of monthly assets and to provide data for the calculation of monthly food cost profit. therefore with these items you need to be more accurate and precise. Saffron. One of the counters should be independent of the kitchen. checking and questioning the count and value. A minimum of two (2) people should stock take. Don’t worry too much about the Pennies. Be methodical. 1 counting and 1 recording. ⅓. always count in the same order and count in the same unit sizes relevant to what you are counting. Therefore. and Fois Gras etc have a high net value. As a 24-hour business it is important that you are flexible in your approach to stocktaking whilst at the same time ensuring accuracy and consistency. tins. 92 . However also remember that luxury items such as Caviar. It is Best Practice that a stock valuation is obtained per accounting period.

Remember however to regularly update them as menus and business changes. The important thing is that you have somebody who 1) Can count and judge weight and value and 2) Who recognizes the goods / product. (Could be computerised to give a real time value). This is also an ideal training method to help them understand food costing within the kitchen. Stocktaking can be carried out by anyone as long as the above rules are followed. Periodic spot-checks will ensure that no items are missing.It is a misconception that the Head Chef has to do all of the stocktaking. Fresh fruit salad . always question the reason goods are in a certain fridge or store. oranges. Or use the standard recipe costing. Give realistic values to prepared or compound products. If you have a large enough operation Dry Stores should have a ledger that records stock movement in and out of the store. pears and pineapples etc? • Use basic Excel spreadsheets per sub department and get each section Chef to count his own fridge and workstation. 93 . knowing full well they do not have it on their menu or indeed a grill? Large stock discrepancies should be noted and investigated.How many apples. For example would you expect to see 5 kg of smoked salmon in the dairy fridge or 5 fillet steaks in the bar. These investigations should be identified to the Head Chef and Financial Controller. Example. If you count in the same order you will be able to compile and use the same stock sheets weekly /monthly. how much cheese? Give these a value. how much cream. Therefore if a Commis’ is good at mathematics and is methodical there should be no reason as to why he cannot help. • 2 Trays of Dauphinoise potatoes – how many potatoes. When stocktaking.

Also known as slow moving items. 4) Closing stock total to be supported by actual stock sheets. invoice returns etc. creditors. invoice returns and authorised journals.x 100 Net Revenue ( -Allowances) 94 . It is Best Practice to have a 7-9 day stock holding of foodstuffs. 8) All arithmetical accuracy to be checked. 5) Revenue figures to agree to business and reflect sales position for exact stock period excluding VAT. 2) Non-invoiced goods (accruals) total to be supported by listing of supplier and amounts outstanding. credit notes.e. 1) All brought forward figures to be checked to previous result carried forward / closing figures. As they inflate the value of stock you either need to use them or get the Financial Controller to dispose of them. 6) Staff feeding figures to agree to set amount. 3) Purchase figures to agree to appropriate payments returns i.From time to time you will have items in the store that do not seem to be used. Calculations Opening stock value + purchases value – closing stock value = consumption Consumption Food Cost Percentage = ------------------------------------. Method For Calculating Stock Value Food results sheets are assembled and calculated from actual stock on hand (stock sheets). 7) Stock sheets updated for price change on a weekly basis. statement.

4) Stocks to be taken by competent persons (see training). Authenticity of stock holdings and valuations to be checked quarterly by Hotel Controller as a standard.Taking of Food Stock Food stocks should be taken monthly or weekly if adverse results are being produced. 95 . 1) All stocks to be taken and calculated at current purchase prices. Stock count sheets to be kept for a period of 12 months. 3) The total stock valuation must be the figure used on calculation of the trading result. 2) No estimated values to be included. It is Best Practice that stock is counted weekly if food cost percentage is not being achieved. compound dishes made in house must be broken down by value of their component parts.

B. a bad Table Chef will cost you money in wastage. lounge and even reception staff on what is on the menu. So what they see forms their expectation of tastes and flavours. choose dishes that can be cooked quickly. Look upon these as visual Table d’ Hote menus. Remember that the food quality expectation of the last customer is the same as the first. The majority of customers eat with their eyes. Do not cook everything off prior to service. and cooking method. bar. 96 . Fully brief all restaurants. The customer is looking for a) b) c) d) e) • • • • • • • • • • Freshness Colour variation Uniform dish display Attractive but not over garnished Visual variation (height) Understanding when and what your customer expectations are. When replenishing dishes. The Table Chef must have a personality and character so that they can talk and sell food to the customers. Every time a customer sets eyes on the buffet they must have a ‘Hilton Moment’. N. Carving techniques must be taught. In order to successfully sell buffets they must have a certain ‘WOW’ factor. take old dishes away and replenish with a new dish. is the base for managing the experience. The presentation must be checked by the Senior Chef and Restaurant Manager prior and during service. Use the ‘little and often’ principle. all the ingredients. Ensure that the Chef on the table understands all the dishes. Do not top up dishes in front of the customer.Table Management and Food Production The management of both hot and cold tables is a ‘science’.

Re-Stocking • Once peaks and troughs have been established use a ½ size dish for trough and a full-size for peaks. 97 . taking care. The method is to take away the dish that needs restocking. food production should be geared up to just in time cooking. The recipe in the breakfast specifications manual should be followed. Do not stack trays on top of each other. do not ‘tip’ new in on top of old. have a new dish ready with new product and place (do not tip) the old product on top. This will stop the rashers sticking together and causing increased wastage or poor portion control. When stocking a product. so no liquid comes from the old onto the new. • • • Scrambled Eggs Bacon Sausages Scrambled Egg • Should be produced in batches of no more that 20-25 portions for peak times. Sausages • These must be trayed up so that there is space to get an even colour on the product during the cooking process. This will not only ensure that the product looks and tastes good but also that wastage is reduced. Bacon must be cooked using the methods in the breakfast specification manual. Under no circumstances should they be fried. They should be oven baked. Bacon • When bacon is trayed up do not overlap the rashers.Breakfast Using the knowledge gained from peaks and troughs. Establish what the average mix of business is by consumption of key production items. this leads to poor presentation and a build up of old product generally in fat at the bottom. Monitor the average consumption over a weekly period.

and updated regularly. tours and Conferences. Always use existing nominated supplier base. Look for value for money ingredients. The product if used should be able to be reproduced in volume. except in the cases of Soups. 98 . yield and shelf life. Preparation and production time for dishes needs to be consistent. ‘little and often’. Customer expectations are met and exceeded by the specifications. Look for ingredients that you can get consistently. should availability problems occur. quality. Using the micros room service menu analysis you will be able to predict those nights and sales mix. • • • • • • • • • • Always use a standardised production method. Products should be scoped so that substitutions can be made.Lunch / Dinner Production for lunch and dinner tables follows a similar system to breakfast. Food Production Remembering these principles will ensure efficient food production. Remember sales mix will vary according to weekend and midweek. Room Service As already mentioned in forecasting and planning will be busy on nights when there are popular sporting events on the television. Terrines and Stocks. Ensure that your mis en place is only sufficient to cover your immediate service needs. When cooking a la carte production. Take Micros sales analysis to help predict volumes. This will reduce wastage. production and presentation. Take into account pack size. Recipes must always be costed. The entrée dishes should only be cooked off for immediate use. This covers the majority of bookings of groups. i. Do not batch cook for a la Carte. Use only seasonally available commodities.e. The basis being the forecast of number of covers and at what time they will be eating.

Sharing Information To make strategic business decisions concerning the hotels food and beverage outlets it is essential that all data is readily available and is accurate. Without accurate information we cannot forecast business trends or plan for the future. Without accurate information we cannot judge individual or team performance. covers and average spends. ! ! Without accurate information it is impossible to successfully manage a hotel or department. ! ! 99 . It is the responsibility of the Accounts Office to supply the General / Hotel Manager and all of the Management Team with daily accurate information giving details of revenue. Without accurate information we cannot measure success or failure against targets. All information produced and issued daily by the Accounts Office should mirror any revenue or statistical reports that can be produced from Oracle.

Daily Revenue Deduction Tracker. To track success of menu dishes and ensure menu cost (if applicable) is correct per item. credits for discounts. Report Type Daily Food Supplier Usage. Covers & Average Spend by Department. To ensure covers and revenue match forecast and match dishes served from kitchen. average spends and sleeper/diner ratios. Lists revenue. Monthly EPOS Sales Report by Item. discounts. Daily Revenue. Track all deducted revenue such as allowances. Utilise for forecasting and planning menus. All credits for inter departmental transfers have been posted. Monthly General Ledger Report For The Food Cost of Sale Account (294-31001).Information Table Below is an example of the various information that should be shared to manage food cost profitability. covers. To ensure all suppliers on report are food suppliers. Monthly Oracle Statistics Report. Monthly Food Cost Result. Daily Food Cost Tracker. 100 . This should list opening and closing stocks. supplier usage. management complimentary account and promotions. management complimentary account and promotions have been posted. credits for IDTs. Use Track monthly cumulative expenditure. All credits for discounts. Track monthly cumulative food cost %. promotions and management complimentary account.

optimum food costing can be worked towards by implementation. Food costs for any other outlet based on menu costing and sales mix From the example below based on previous calculations the optimum food cost for the trading period is 25%. The financial or food and beverage controllers need to calculate the following. Any variance to this forecasted monthly cost should be investigated. Food cost for Room Service based on menu costing and sales mix. ‘The minimum cost of product used to serve a meal to a specified standard as a percentage of maximum achievable sales revenue’. From menu costing. Calculating Optimum Food Cost On a monthly basis the hotel can calculate its optimum food cost based on the previous months sales. All sections contribute towards optimizing food cost and although some sections are small. If the calculations have been made correctly this will give a true picture of what the food cost should be within the hotel. regular review and training of this manual. This definition is of course not as simple as is sounds. all are as equally important to Best Practice management. Food cost for restaurant a la carte based on menu costing and sales mix. 101 . Food cost for banqueting based on banqueting menu cost and selling price tracker sheet. • • • • • Food cost for buffet restaurant based on the AFCE.Optimum Food Costing This can be simply defined as follows. However. sales mix and the AFCE’s the hotel should calculate its forecasted monthly cost. The calculation is made up of a combination of the sales mix and achievable food cost exercises. We have seen throughout this manual that a number of factors exist that we must take into consideration.

102 .Example Hotel Optimum Food Cost Calculation Sales (£) Buffet A la carte Room Service Bar/Lounge Restaurant 2 Banqueting Total 10000 2000 2000 2000 3000 20000 36000 FC (£) 3500 600 800 500 1140 3600 10140 FC (%) 35 30 40 25 38 18 26 The cost values are calculated from the menu cost sales mix analysis. AFCE’s and Banqueting menu sales / cost matrix tracker. It is Best Practice to calculate optimum food cost as part of month end calculations.

Appendices Charts and Food Cost Calculations • • • • • • • • • • • FC001 FC002 FC003 FC004 FC005 FC006 FC007 FC008 Food Expenditure Tracker Food Suppliers Goods Received Suppliers Order Form Hotel Audit Checklist Outlet Manager Questionnaire Quick Calculation Table Menu Costing Sheet Revenue Deductions Conversion Formulae Conversion Tables List of Nominated Food Suppliers (at October 2002) 103 .

35 Grams to Ounces – Multiply by 0.4536 Kilograms to Pounds – Multiply by 2.20262 Exact Formulae .Conversion Tables Exact Formulae –Dry Goods • • • • Ounces to Grams – Multiply by 28.0352 Pounds to Kilograms – Multiply by 0.568 Workable Equivalents Ounces / Fluid Ounces ½ 1 2 3 4 5 10 15 20 Gram / Millilitres 10 25 50 75 100 125 250 375 500 104 .4 Pints to Litres – Multiply by 0.4 Millilitres to Fluid Ounces – Divide by 28.568 Litres to Pints – Divide by 0.Liquid • • • • Fluid Ounces to Millilitres – Multiply by 28.

00 Net Selling Price = £5.75 Inc Vat 105 .Conversion Formulae To Calculate Selling Price on known GP% • Cost Price x 100 / Known Cost % = Net Selling Price To Add VAT • Net Selling Price x 1.45 = £3.175 = Net Price Example Cost Price Cash Profit = £1.175 To Find Food Cost % • Cost Price / Selling Price x 100 = % Cost To Find Food Profit % • Cash Profit / Selling Price x 100 = % Profit To Find (Take Off) Vat Element • Selling Price / 1.55 = 29% = 71% Selling Price = £5.

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