Food Service – food served outside home [in quantity]

EVOLUTION OF THE FOOD SERVICE INDUSTRY

Tremendous growth due to:
 Socioeconomic factors
 Increase in population growth
 Higher family income
 Employment of women in commerce
 Industry and growth of suburbs and cities
Across the Globe
a. Ancient Times
The era covers the first civilizations. [roasting – first cooking method; boiling]
 Taverns
 Started in Sumeria [cuniform tablets - recipes]
 Cooked foods and cookshops
- Food stalls sold short orders (fried fish and meats)
- Greece: roast pork and saltfish
- Professional cooked food in Mesopotamia
 Cookbooks
- Apicius de re Coquinaria by M. Gabius Apicius: the first cookbook
 Ceremonial feasts
- A public consumption of an elaborate meal often accompanied by entertainment
- Goals served include paying debts, displaying opulence, gaining allies
 Dinner parties [banquets]
- Lavish dinner parties
- Greece: symposire [only for male aristorcrats]
- Romans: convivium [men and women]
- Elaborate rules and rituals (e.g. reclining in the dining room)
b. Middle Ages
The era includes the World Exploration, Renaissance, French Revolution, and Industrial Revolution
 Religious orders
- Quantity food production
- Early day cost accounting system
- Canterbury Abbey: 45-ft wide kitchen
 Royal and noble households
- Scientific cost accounting system; more elaborate because of social rankings
- Northumberland Household book
- Causes of food spoilage
- Refined kitchen equipment
- Employee’s attire in the kitchen
 Hostels
- Europe (12th century)
- Board and lodging
- Sororities and fraternities: feeding of large students without faculty supervision
 Inns and taverns
 - 13th century to 18th century
- Food and lodging for travelers
- Taverns specialized in wine; forerunners of the coffeehouse and present restaurants
COMMERCIAL
 Stand alone – not within an establishment
 Within lodging facilities – within hostels
 Dining rooms – hotels

THE MENU
Priority Concerns of the Menu Planner
 Wants and needs
 Concept of value
 Item Price
 Object of Property Visit
 Socio-Economic Factors
 Demographic Concerns
 Ethnic Factors
 Religious Factor
Aspects in Menu Planning
A. The Customer
1. Demographics
 Age, sex, paying capacity, geographic & age distribution
2. Physiological/nutritional
3. Socio-cultural influences
 Marital status, lifestyle, ethnic background, values & religious practices
4. Food consumption, habits & preferences
B. Budgetary Requirements
1. Based on sales – commercial facility
2. Food cost allowance per meal/patient
3. Balance of high- and low-cost items
C. Production and Service Capabilities
1. Kitchen space, physical facilities, equipment, utensils and sanitation
2. Manpower, materials and time availability
D. Style of Service
1. Buffet – dry, easy to handle
2. Waiter service – decorated, garnished
E. Types of Menu
1. Based on pricing
2. Extent of selection
3. Frequency of use
F. Time and Seasonal Considerations
1. Time of the day/season of the year
2. Holiday & religious occasions
G. Food Characteristics (Aesthetics)
1. Appearance
2. Temperature
3. Texture
 4. Flavor
H. Food Utilization
1. Using edible trimmings
2. Avoiding leftover by careful planning of the production
3. Planning ahead of time on how to use leftovers
4. Eliminating perishable ingredients which are of “minimum use”

The Menu: The Foundation for Control

Menu Planning – Purchasing – Receiving – Storing - Issuing – Preparing – Cooking – Holding – Serving –
Guest Satisfaction
Menu Pattern
- Outline of menu item categories/meal
Meal Plan
- Breakfast, lunch, dinner
*continental – no protein

CONTRIB MAGRIN = MENU PRICE – FOOD COST

Average Contribution Margin = total contribution margin / total number of items sold
 Profitable items have a contribution margin equal to or higher than the average contribution margin
Menu Total Menu Portion Food Portion Total CM
Sold Price Cost Cost CM CM %
%

Ham
burger
Cheese
burger
BLT
Ham
Chicken
Club
house
Steak
Sand
wich
Total

Ave CM = 415.25/50 = 8.305

8.2 98.4 24
7.7 61.6 15
8.2 82 20
7.45 37.25 9
9.7 38.8 9
8.95 53.7 13
8.7 43.5 10

POPULARITY
 Determined by comparing sales of items to expected popularity
 The expected popularity is the priced menu mix (sales mix) if each of the menu items in a category were
equally popular
Application of Popularity
If you have (7) sandwiches, the expected popularity would be 100% divided by 7 or 14.3%. to be considered
popular, items must have sales of 70% (constant) or more of the expected popularity.

Popularity = Expected popularity x 0.7

Popularity of sandwiches = 14.3 x 0.7
Therefore, the contribution margin percentage of each must exceed 10% to be considered popular.

Stars
Profitable and popular items
 Maintain rigid specification
 Place in a highly visible location on the menu
 Test for selling price inelasticity
 Use suggestive selling techniques
Cash Cows
Not profitable but popular
 Increase prices carefully
 Reduce cost of accompaniments
 Assess the direct labor factor
 Consider portion reduction
 Relocate the item to a lower profile on the menu
Puzzles
Profitable but not popular
 Repositioning on the menu
 Consider a price decrease
 Add value to the item by:
- Increasing portion size
- Garnishing and better side dishes
Dogs
Items that are low in contribution margin and low in popularity
  Candidates for removal from the menu
 Consider retaining when it provides opportunity to make use of left overs and if it entails lower labor
cost

PURCHASING
Food processor - person applying marketing strategies to sell, fabricators, manufacturers
Menu – driver of purchasing cycle
TYPES OF PURCHASING
1. Centralized
 Separate purchasing department
2. Decentralized
 Local branches or departments
INFORMAL BUYING METHOD
1. Open Market Buying
2. Prime Vendor or One-Stop Method – one supplier supplies all goods
3. Standing Order – per staples; unchanging
4. Blank Check or Complete Open Buying – addition of goods(?); charge
5. Cost-Plus Buying – specific markups agreed upon
6. Quotation and Order Sheet Method – for medium-sized establishments; list of prices
FORMAL BUYING METHODS
1. Formal Competitive Bid Buying – competition; sealed bids or price offer
2. Future Buying – advanced order to protect from inflation
3. Cooperative/Shared/Group Buying – cheaper
4. Warehouse Club Buying – status symbol
5. Negotiated Purchase – price agreements
PURCHASING OPTIONS
1. Buy-and-inventory – buy then stock
2. Stockless purchasing – buy but not stock; no storage
3. Ride the market – du jour items, in season
4. Cost-plus option – agreed markup
5. Hedging – goods as stocks
6. Shop around more frequently – line shopping; compare prices
7. Use of substitutions – no supply
8. Cash discounts – coupons, “suki”
9. Economical packaging – no labels, colors
10. Promotional discounts/introductory offers -
11. Just-in-time purchasing – kung kalian gagamitin, dun lang bibilhin
12. Odd-hours delivery –
NEEDS
- Based on:
1. Menu
2. Current inventory level
3. Level of preparation required
 4. Coordination with the different foodservice units

Purchase Order – issued from organization to suppliers

Purchase Requisition – inter departmental

PURCHASING CONTROL
 Pressure buying
 Satisfied buying
 Pilferage – smaller, cheaper items
 Burglary -
 Spoilage

How much to order?

Minimax – stock allowed to deplete to safety level before new order is made to bring level up to maximum
RECEIVING
[addt’l] Purpose:
 Enforce FDCA #3740
Location – closest to the back door

 Schedule
 Defined, off-peak period
 Personnel
 Receiving clerk
 Stockroom personnel
 Foodservice manager
 Security
 Immediate checking and storage

f. Type of receiving
3. Blind receiving – items only
Other types of receiving
1. Standing Order
 Delivery tickets
 Regular, periodic payment
2. Odd Hours Receiving
 Avoid rush receiving
3. Drop Shipment
 Common carrier
 Difficult to settle immediately
 4. Mailed
 Packing slips; e-commerce
5. Cash on Delivery
 Delivery agents receives payment

Receiving Process
1. Inspect and check delivery vs. P.O.
2. Inspect and check delivery vs. invoice
3. Accept order if quantities and specifications are met
4. Sign invoice
5. Complete receiving records
6. Immediately store goods

Common Oversghts in Receiving

1. Inappropriate quantities
2. Non-detailed inspection
3. Faulty check for expiry
4. Not referring to specifications
5. Arrival of man suppliers at a time
6. Shortage of manpower
7. Delay in ordering

STORAGE
Condition of Facilities and Equipment
1. Adequate containers for raw & cooked foods
2. Adequate freezers and refrigerators registering right temperature
3. Adequate mobile and adjustable shelves
4. Proper ventilation and air circulation
5. Slatted floor racks
6. Adequate lighting

Storage Temp
1. Refrigerator – 35-40
2. Freezer – 0 or lower
3. Dry storage – 60-70

Food Arrangements
1. Rotation of foods stocks (FIFO)
2. Location of items should be fixed for easier inventory & to avoid over purchasing, spoilage, and theft
3. Arrange according to:
 Alphabetical sequence
 Frequency of use
  Grouping of commodities
4. If possible,
5. D
6. Store food 12” from the floor, 18” from the ceiling, 2” from the wall
7. Cooked foods stored in small containers
8. Foods should be covered and dated
9. Toxic and non-food items kept in separate storerooms

Security
Addtl: Closed circuit TV to monitor activities inside the storage room to deter pilferage
With bell and internal door opening for WI units

Dry stores – 60-70F; for staple goods

Fishes – high moisture, protein in nature
Essentials for Food Storage
 Adequate space
 Right tempt and humidity
 Adequate equipment
 Proximity to receiving and production
 Access to proper maintenance
 Security
 Competent personnel
 Storeroom regulations

Par Stock (addtl) – maximum quantity of a given item that should be on hand after the most recent order has
been made
Economic Order Qty (EOQ)
 formula used to determine the optimum order size
Periodic Inventory
 Commonly used for maintaining inventory of non-perishable items
 Shows amount of money tied (*not fast moving) in inventory

Periodic Inventory: Periodic Order method

 Permits infrequent ordering; established regular dates for ordering with fixed intervals
 Formula
 Amt required for the upcoming period
Perpetual Inventory
 Records amounts of producers purchased, and as items are issued for use, the amts are deducted from the
total amount of products on hand
 Obtain running balance of stocks on hand without physical counting done

Ex.
Par stock level of sotanghon is 5 packs Usual consumption is 2 packs per week. When supplies go down to 3
packs, a purchase order must be made. If the delivery for dry goods come on a weekly basis, compute for the
reorder quantity.
Par stock 5
Reorder point (-) 3
Subtotal 2
Normal usage (+) 2
Reorder qty 4

Physical inventory record for crushed tomato

Jan 1, 2016: 20 cans
Jan 31, 2016: 8 cans
Sched of delivery: 5 cans twice a montth
20 cans cans opening inventory
(+) 10 cans purchases during the month
(-) 8 closing inventory
22 cans

Periodic Inventory
Amt required
(-) Amount on hand
(+) Amt needed until next delivery
= AMOUNT TO ORDER

Perpetual Inventory
Par Stock
(-) Reorder point
(+) Normal usage
= REORDER QTY
Physical Inventory
Opening inventory
(+) Purchases
(-) Closing inventory
= cost of foods sold on units consumed

Inventory
 Qty of goods on hand counted as assets for financial purposes and taxes
 Also termed as stock – finished good or in the process of production, raw materials, items used in the
production of goods
VALUING INVENTORY
 Valuing inventory is used for raw materials; recipe costing for processed and finished goods
 Food products are unstable in price and quality
Objectives:
 Determination of Inventory

1. FIFO Method (Latest Price)

 Food cost is charged with latest purchase prices for raw materials, in-process items, and finished
items
 As food items are perishable and space is limited, you will use he oldest inventory before more
recent purchases
 Uses recent purchase prices to extend the inventory values
 Results in highest ending inventory, lowest cost of goods sold, highest net income
2. Last-In-First-Out Method (Earliest Price)
 LIFO in pricing, but uses FIFO in issuance of stocks; not a commonly used method
 Items in the inventory at the end of the cycle are treated as though they had been in the opening
inventory, plus or minus purchases to make up the correct total
 The value assigned to the inventory is the oldest purchase price
 During inflation, when prices are rising, the LIFO method yields a lower ending inventory,
 Extended value = price x units
3. Actual Purchase Price Method
 Use actual price to determine inventory value
 Most accurate but most time consuming
 Each item in inventory must have its own price
 Marks each product with actual purchase price may the stock be old or new
 Items will have different values based in its purchasing price
 Ff
4. Weighted Ave Purchase Price Method
 Identical inventory items are combined
 Adding all inventory values to get a grand total then dividing it by the total number of units
 Takes the average of all units avail for sale during the accounting period and uses the average cost to
determine the value of the cost of goods sold pft
 Total Price / no. of units
5. Latest Purchase Price Method (Most Recent Price)
  Simple because it uses latest price for all goods whether its old or new
 No need to review stocks, automatically use the latest price for all items in the inventory list
 FIFO is recommended for rotation of tocks but not for valuing inventory during inflationary times
 LIFO is recommended during inflationary period
 Average and actual price methods are time consuming and difficult to implement
 Latest price method is the best overall approach

Recommended guidelines for inventory turnover ratios:

Food (storeroom) 4.0-2.5
Food (storeroom and prod’n) 2.5-1.5
Beverage (storeroom) 2.0-1.0
Beverage (storeroom and production) 1.0-0.5

 Interpretation of Inventory Turnover

- Low ratio implies weak sales, excess stock
- High ratio implies strong sales and/or large discounts
 Dead stock
- Stock w/o significant inventory movement
- Waste of company capital
It is the responsibility of the foodservice manager to maintain storeroom inventory turnover and to minimize
product deterioration.

FOOD COST
- includes cost of food sol to customers, value of food given away, wasted, or even stolen
Starting inventory + purchases – ending inventory = Cost of Goods Sold

Adjustments to Cost of Foods Consumed

Employee meals – free meals for employees (-)
Complimentary meals – food given away (-)
Grease sales – sales from used oil, grease bones, and fat scraps (-)
Transfer to other units: to another unit (-), into a unit (+)
Food to bar – value of items transferred to bar for making drinks (-); typical items include fruits, veg, spices,
juices, dairy
Gratis to bar – light food given away to customers (-)
Steward sales – sales to employees at cost (-)
Promotion expense – free taste (-)
Production is the step at which raw or processed food are transformed to an acceptable finished product; ready
for service

Production includes:

Methods of Forecasting
2. Subjective Method
 Uses info, experience, and intuition to determine the amount of products needed
 Padding – practice of ordering and producing more than is actually needed in order to avoid
shortage; percentage forecasting
Reasons for inaccuracies in forecasting:
1. Increase recording of information such as padded amounts, batch cooking, leftovers, and substitutions
2. Intentional or unconscious attempts to undermine the computer system
Monitoring Accuracy
 Compare forecast vs actual
 Make analysis and adjustments as needed
PRODUCTION SCHEDULE
Storage and thawing time
Assembly
Pre-preparation
Preparation
Cooking
Plating and packaging

Holding and storage prior to service

Production Meeting
planned or scheduled times when employees and managers gather to discuss the menu and production plan

Prodn control
Process of monitoring production during and after to determine if plans are met and to make adjustments as
required
Used to direct the conversion of inputs into products that are uniform and reproducible
Prodn controls: ingredient assembl and use of standardized
Quality Standarads
Measurable statements of the aesthetic characteristics of food
Closely related to consumer expectations and acceptability
Refers to sensory characteristics of food like flavor, texture, appearance, temp, visavis response of the clientele
to food

Portion Control
- Giving a definite quantity of good food for a definite percentage of profit
- Involves weighing of food and using standardized serving utensils
1. Butcher Test
a. Determine standard portion costs before cooking for steaks, chops
b. Establish price of prime cuts relative to other parts
c. Dictate selling price of menu items
2. Cooking Lost Test
3. Yield Percentage
a. Ratio of the weight of part of a product to the weight of the product as purchased
5 Ways of Quantifying Items
1. Weight
2. Volume
3. Count
4. Equal Portions
5. Portion fill (for beverages)

Centralized Ingredient Control

 Control of unused portions is facilitated because storage and assembly is located centrally rather than in
various work units
 Ability to combine tasks of two or more recipes using similar ingredients
 Use of ingredients rooms for assembly

*Steam Jacketed Kettle (SJK)

*Proofer – heated cabinets responsible for letting dough rise
Consomme – clarified soup
Bouillon
Vegetable Soup

Sponge method: leavening agent (pre-ferment) – allow rise (rest) - + flour + other ingredients
Distance:
Decentralized – longer
Centralized – shorter

Conventional, Ready Prepared – Centralized

Commissary, Assembly/Serve – Decentralized

Types:
Centralized: QSRs, Small hotel fs, Small hospitals, Small banquet service
Decentralized: Tertiary hospitals, Hotels, Industrial plants, QSR commissary

Size and Physical Layout

High Rise Multilevel – Decentralized
Sprawling – Decentralized/Centralized

Self service - centralized

Waiter service - centralized

ServSafe program – certifying body trains fs workers

Cross contamination occurs when microorganisms are transferred from one surface to another
A foodborne illness can result if cross contamination happens in any of these ways (ServSafe, 2008):
1. Contaminated ingredients are added to food that receives no further cooking
2. Contaminated food touches or drips fluids onto ready-to-eat food
3. A food handler touches contaminated food and then touches ready-to-eat-food
4. Ready-to-eat food touches contaminated surfaces
5. Contaminated cleaning towels touch food-contact surfaces
Common Risk Factors that Cause Foodborne Ilness:
1. Purchasing from unsafe sources
2. Failing to cookfood adequately
3. Holding food
4. A
5. A

Foodborne Toxin-Mediated Infections

- Ingestion of food containing pathogens, which then produce illness causing toxins in the intestines
Foodborne Illnesses Caused by Viruses
Preventive measure: practice personal hygiene
1. Norovirus gastroenteritis
 Virus: Norovirus – fecal contamination
 Symptoms: vomiting, diarrhea, nausea, abdominal cramps
 Linked with ready-to-eat food and shellfish from..

Foodborne Illnesses Caused by Bacteria

1. Bacillus cereus gastroenteritis
 Bacteria: Bacillus cereus (produces toxin)
 Symptoms: diarrhea, vomiting
 Food: cooked veg, meat, milk, rice dishes (vomiting)
2. Listeriosis
3. Hemorrhagic colitis
 Bacteria: E. coli (Shiga toxin-producing) including O157:H7, O26:H11, O111:H8, and O158:NM
 Found in the intestines of cattle; can contaminate meat during slaughtering; bacteria produces toxins by
4. Clostridium perfringens gastroenteritis
5. Campylobacteriosis
6. Botulism

Preventive measure: prevent cross-contamination

1. Salmonellosis
 Bacteria: Salmonella spp. (excreted in feces)
 Cook at 165F internal T for meat
 Symptoms: diarrhea, abdominal cramps, vomiting, fever
 Food: poultry and eggs, dairy products; half-cooked high protein
Five Pathotypes of E. coli
1. ETEC
2. EHEC
3. EPEC (Enteropathogenic)
4. EAEC (Enteroaggravative)
5. EIEC (Enteroinvasive)