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Canteen PDF
Canteen PDF
In the industrial belt of Pune and Pimpri-Chinchwad there are many industrial
units that run round the clock -Kirloskar units, Bajaj units, Tata units, Kinetic units and
other units like Ruston Greaves, SKF, Thermax, Forbes Marshall and others run their
production units to the full capacity. The workforce has to report at least an hour before
the commencement of the shift. They start from the place of their residence at least an
hour or more before the reporting time. The same procedure is followed when they
finish their work. Their working schedule lasts for about nine and half hours. Add to
this time required before reporting and after the end of the work-shift. The total time
required for transport and work in the shift is of about eleven to twelve hours. It is but
natural that these workers need to be fed properly and sumptuously. This requires the
establishment of the catering unit on the premises of the industrial unit. It is obligatory
for industrial units having more than 250 employers to provide the canteen facility.
Though it is optional for them, many units having less than 250 employees in their
workforce, provide the canteen facility on their premises for the convenience of their
workforce. The provision of wholesome food needs to be made for the workforce that
is required to put in their hard physical labour in the industrial unit. It is essential to
maintain a balanced diet of sufficient nutritional values to be served in such industrial
canteens. The need for the provision of canteen facility for workers is thus universally
acknowledged in respect of the industrial units for more or less than 250 employees in
the workforce.
The need to establish such catering units is the main ground of its justification.
The physical necessity of the establishment of an industrial canteen justifies its
existence. It is a welfare facility to be provided to the workers in an establishment. It is
a humanitarian gesture on the part of the employers. The welfare facilities that are
given to the employees in a unit are considered to be the part and parcel of the
expenditure an employer is required compulsorily to incur. It is now a privilege of the
workforce to demand this facility. The provision of an industrial canteen is thus an
obligation for the
The physical needs are those which are required for comfort at work. The
welfare activities of this category are the provision of proper lighting, temperature and
humidity control, fresh air free from fumes and gases, low noise levels, a clean
environment, clean uniforms for staff, toilet and hand washing facilities, waste disposal
equipment, proper drainage and sanitation facilities, safety procedures and devices and
appropriately designed equipment and furniture. Sound proof ceilings, fitting exhaust
fans, provision of sinks and sitting and resting facilities are required in the industrial
establishments and particularly in the canteens.
The socio-psychological needs cover the needs for security through adequate
wage payments, provision for housing, infant creches for working mothers, transport,
social working hours, leisure and holidays, leave for sickness, maternity and
counselling services for stress at work-in-addition to the wages, subsidies on meals,
housing and others help to enhance wages indirectly.
The physiological needs are the needs of all the people. The provision of safe
drinking water, canteen facilities, rest periods and room, clean toilet facilities and
medical facilities are included in the physiological needs. Canteen facilities are a
statutory requirement. Irrespective of this, it is moral obligation on employers of
catering staff to provide them with fully or partly subsidised meals. Health facilities
generally include regular medical check-up, treatment for ailments or injuries,
preventive medical care, health education and health insurance. Money is an important
motivator of people’s behaviour as far as it can help to satisfy basic physiological needs.
After that it is the non-financial incentives that take care of psychological and social
needs. The employee welfare measures include (a) work environment facilities related
to the maintenance of temperature, humidity, clean air, noise level and safety, (b)
hygiene and sanitation such as toilets, change rooms, rest rooms, waste disposal,
drainage protective clothing, and footware (c) welfare amenities such as canteen
services, safe drinking water, health facilities and medical checks, (d) housing facilities
such as HRA free accommodation and loans for housing (e) recreation as sports, games,
reading room, library and films and (f) training such as job development, individual
development, language training communications, craft training and lectures etc. The
provision of canteen facilities thus satisfies the physiological needs of the worker and
thus running a canteen in an industrial unit is a labour welfare facility.
What is an industrial canteen composed of? An, industrial canteen exists in its
utilitarian functioning, which is plainly to feed the employees in an industrial unit. Its
functioning is a service-oriented facility. The core activity in the industrial canteen is
the cooking of the items of food in the kitchen and serving them fresh and not to the
consumers in the dining hall or its service area. The preparation of food production, the
actual food production and the food service to the consumers are the central activities to
be performed in an industrial canteen. In addition to these core activities, what goes
before the pre-production and production stages and what follows after the food is
served are also part and parcel of the schedule of the functioning of an industrial
canteen. What an industrial canteen is composed of is the continuous and complex
network of activities during the pre-production, production and post production phases
of preparing food and serving to the consumers in order to enhance their efficiency
through the provision of wholesome meals and by creating a comfortable work-
environment. The orderly sequence of these activities needs to be maintained and each
of the activities needs to be executed most efficiently and a delicate balance between
competent work culture and consumer satisfaction needs to be maintained in the
functioning of an industrial canteen. The composition of an industrial canteen lies on
the co-ordineted joint efforts of a group of workers involved in the canteen
management from the person at the top who is supposed to manage and supervise the
functioning of the industrial canteen to the person who is supposed to be a helper in the
dishwashing operations. The hierarchy of functions, roles and activities needs to be
cautiously put to the work on hand from day one to the next and from the next to the
next to that and so on and on throughout the year. It is a constantly moving cycle that
has no stops and keeping the cycle which is made of many many inner cycles, is what is
involved in the composition of the industrial canteen. It is a joint task of all the
concerned and any slip or error at any level is bound to have, its negative results on the
entire job, involved in the functioning of the industrial canteen. There are no material
components but a consistent chain of physical actions that need
physical labour, mental alertness and psychological strength to carry on the activities in
the industrial canteen. The administration, the management and the execution of these
core and related activities constitutes the composition of the industrial canteen. What an
industrial canteen composed of is the conscious combination of the head, the hand and
the heart domains to plan, to work out and to feel the various jobs involved in feeding
the people. In India, this task has been carried out in ceremonies and festivals from the
times immemorial and the one who cooks food does it as if he is worshipping God-as if
doing the pooja (worship) of Annadevta (the god that is food) and the one who eats the
food gives heart-felt compliments with satisfaction, in the words like Annadata sukhi
bhava (let the giver of food be perennially happy). Their sincere commitment to the
duty on hand in the production and service of food is at the heart of the matter in the
functioning of an industrial canteen.
The canteen manager is required to play different roles in carrying out his duties.
He is required to look after the purchases to be made. It is his duty to fix the quality and
quantity of the items to be purchased. It is he who decides when and where to make
these purchases. He is responsible for making decisions about the rates to be approved
while finalizing the procedure of making purchases of grains, cereals, spices,
vegetables, fruits and other items required in the production of food. The physical
features are determined by the canteen manager such as the items of furniture, different
fixtures and the seating arrangement and the space management for the store, the
kitchen and the service area. The canteen manager has to carry out the important task of
deciding the menu and planning the menu per shift, per day, per week and even per
month. The material provision, the physical arrangement and the menu planning are for
the canteen manager the basic functions of his administrative responsibility. The
purchase manager, the supervising authority for the physical infrastructure and the
decision-making administrator for menu-planning are some of the roles the canteen
manager is required to play in the pre-production phase of the preparation and
production of food in the industrial canteen. In the phase of the production of food
items, the canteen manager is required to oversee the job done by the cooks, in
particular those involved in the making of vegetables, chapatti-roti-paratha-puri, the
sweets and salad and other supplements. Then he is required to supervise the work
carried out by the waiters and helpers. He is more or less a personnel-in-charge in this
phase. His role as a supervisor begins with the post production phases and cleaning,
washing and sanitation routine. He is required to work as a cashier in most of the units
and as such he has to occupy the seat at the reception counter. From this place he has to
control, manage, direct and supervise all the tasks being carried out on the premises of
the canteen. Many times he is required to maintain the accounts and prepare the records
and registers. He has to carry out the correspondence. He is the linking bond among all
the workers involved in the functioning of the canteen and he is the person who is
involved in a responsible capacity and who has to act as a bridge between the world of
the canteen and the world of experience outside the canteen. His is a very delicate task
of maintaining balance between management and
workers, decision making and implementation and the worlds inside and outside the
industrial canteen. He is a single individual who has to work in multiple responsible
positions to make catering a comfortable and satisfying experience to those who gather
at the canteen to get refreshed physically and mentally.
The canteen personnel or the canteen staff works at the bottom of the pyramid-
like structure of the administrative set-up of an industrial canteen. These are called line
management or lower management workers. The different cadres make the canteen
personnel. Apart from the canteen manager, most of the other employees as the staff of
the canteen are included in the category of the canteen personnel. In the kitchen there
are cooks, assistant cooks, a maker of tea-coffee, dishwashing workers, the cleaning
workers, those are required to cut, slice, peel, and clean the materials of the food items
to be used for production of the items. In the service area there are the steward, the
captain, the waiters, the utility workers, the helpers and the cleaners. There are the
cashier, clerk, the accountant and the servants in the reception section. The maid
servants have to perform certain specific duties. The catering, the purchasing, the
service, the general administration, the financial management and the personnel
management are the major heads of activities that are involved in the running of an
industrial canteen. The staff that is employed to carry out these various activities forms
the category of the canteen personnel. This is the group of those individuals who
actually perform the different operations and complete the different procedures and
processes necessary in the running of an industrial canteen. This is the actual work-
force of the canteen activities to be performed in a routine schedule day in and day out
almost without interruption on all the working days of the year, which in majority of
cases, happen to be all the 365 days of the year. The management is of administrators
and the middle management of managers and supervisors and the line management is
that of the actual performers of the tasks in the running of an industrial canteen.
There are three main aspects of the functioning of the industrial canteens that
need to be appropriately recorded in specific books and registers. These are (a) the
administrative records (b) the records of financial transactions and (c) the records of the
staff working in the canteen.
The daily attendance register and the leave record register are meant for the
employees working in the canteen. The Wages and Salary Register, the PF account
register and the Overtime Allowance register are related to the canteen staff. The
presence and absence in the daily attendance register and leave record register mark the
employees on duty or otherwise as the case may be.
The record of menu sheets is essential for the preparation of the cyclic menu for
a week or a month. Menu planning, menu preparation and menu scheduling will
enhance on account of these records and registers if maintained with accuracy and
efficiency in the establishment like the industrial canteen.
Like the stock register and registers related to the employees, the registers and
minute-book concerned with the meetings of the canteen committee are essential in the
administrative set-up of the industrial canteens. The canteen committee being the
responsible decision-making body makes decisions about the working, the daily
business and the general policy and these decisions are recorded in the minute book
which is an important document to run the canteen as per the resolutions passed in the
committee meetings.
The maintenance of the records is vital in the running of the industrial canteen.
The administrative aspects are duly recorded due to the up to date keeping of these
records and registers. The management of the canteen personnel is effectively made on
account of the different registers maintained to record the service profile of the
employees in the canteen. The registers and records keep the account of what should
happen and what actually happens in the administration, financial and personnel
management and the organisational working of the industrial canteens and therefore
those are of vital importance in the industrial canteen management.
The purchase register may be a single register or a set of separate registers for
the perishable and non-perishable items or for the bulk purchases and the daily
purchases. There is the possibility of category-wise or item-wise keeping of the records
of purchases in the purchase register. The item-wise registers of purchases can be
useful if the details of the items, their quality, quantity, weight or measurement and
price are recorded in the relevant sections under different headings. The food and
beverage section may be kept separate from the sections of furniture, equipment and
utensil for cooking and for serving. The purchases of perishable items such as milk,
eggs, vegetables and fruits may be recorded with specific details. Purchases of the
materials determine the volume of expenditure. The purchase register gives information
about the materials and the other essentials in running the industrial canteen and the
planning, the preparation and the production of the items of food is decided on the basis
of what the store contains. The market, the store and the kitchen are the locational
points which are necessary in making an eatable item out of the provisions purchased
from the market and stored in the store of the industrial canteen.
The sale register keeps the record of what is sold, in what quantity and for what
price. In some cases, the cash transactions do not take place on the counter. In place of
the cash in return of the items sold, the coupons are used. The issue of coupons and its
utilization pattern is pre-determined as per the procedure fixed by the authorities of the
canteen. It becomes obligatory to keep a record of the coupons collected and to tally it
with the sales of the items served in the canteen. Whatever is used for the sale
transactions, the cash amount or the coupon collection, the sales determine the receipts
in the canteen. The expenditure from the purchase register and the receipt from the sale
register are the two sides that are necessary to present the financial position of the
transactions in the industrial canteen.
The purchase register and the sale register both together enable the canteen
management to determine the price of the item. The cost register and the cost pricing
procedure are to be essentially maintained in order to find out the inputs required in the
production of the food items and the determination of the level of the price of the item
concerned. The cost of materials, the labour charges, the establishment expenses and
the overhead charges need to be calculated to determine the price and on account of this
price of an item like potato-wada may vary from canteen to canteen. The range of price
may be Rs.5 to Rs.10 for such an item as the bare price of the product, but the way it is
served, where and when served and what other comforts are offered with it may
determine the actual price in the range of Rs.10 to Rs.25 depending on the cushion, the
furniture, the dishes and the environment in which the item is served. It is observed
these days that the price of the ambience today is much more that the actual price of the
item. It is for this reason that the industrial canteen management tries to maintain the
price level by keeping the ambience to the minimum and the quality and
wholesomeness of the food items as the matter of significance. It is for this reason that
the subsidy is offered on the prices of the items, or discounts given, or free meals or
free coupons or subsidized item are given by the industrial units that ultimately control
the industrial canteen finances.
Financial statements in the industrial canteens are of different types. It has been
observed that the purchases denote the expenditure side and the sales present the
income side and the both need to be stated in the manner which is desirable. The
expenditure and the income sides both are presented through the information sheets to
be supplied in the statements of expenditure, that is, the report of the two factors shows
the actual financial position and other factors.
The income and expenditure statements provide just one aspect and those are
dependent on the purchases and sales recorded in the registers maintained specifically
to keep track of the two. These statements prepare the ground for the profit and loss
account. The profit and loss statements are required to prepare the trial balance and the
balance-sheet. In addition to the purchases of provisions, the other items such as wages
and salaries, the establishment expenses by way of expenses on furniture, linen,
equipment, bills for water, gas, power and telephone connections, the overhead
expenses and others need to be put in the appropriate format so that the financial status
becomes clear. These total expenses present one side that is of the outgoing flow of
cash transactions and therefore the other side of the sales, the coupons, the subsidy, the
monetary receipts need to be taken into account. The running of an industrial canteen is
a labour welfare activity and therefore an entirely commercial approach need not be
adopted in the consideration of the profit and loss statements of the establishment like
the industrial canteen.
Annual accounts comprising of Income and Expenditure, Trading and Profit and
Loss Account, Balance Sheet etc. must be prepared immediately on the close of the
year. After internal audit they should be submitted to the Integrated Financial Adviser
of the Department/ Office within three months of the close of the financial year. It will
be the responsibility of the Manager to complete and submit all accounts progressively
prepared as on the last day of every month, within seven working days of the following
month, after internal audit, to the Honorary Secretary for putting up to the Managing
Committee.
1. Cash Book 2. Ledger 3. Stock Register (for expendable items, coupon books,
crockery, empty containers etc.) 4. Dead Stock Register 5. Preparation
Register (to show the details of eatables produced) 6. Sales Register (Work
Sheet) 7. Coupon Sales Register 8. Salary Register 9. Attendance Register
10.Bill Register (for sale on credit) 11. Kitchen Register (if a number of
canteens is grouped together for Kitchen functions) 12. Journal (if number
of daily transactions of credit sales and purchase exceed five) 13.Annual
Accounts
The audit of accounts will be carried out by the internal Audit and after that it
will be carried out by the Statutory Audit Squad appointed for the same specific
function.The periods for retention of the records of the canteens are to be prescribed in
consultation with the competent authorities for a period form One year to Ten years
depending on the nature of the records and register. The annual rates of depreciation
will not be allowed to exceed the under mentioned limits for Furniture – 10 percent,
Equipment -20 percent and Crockery of 33 percent.
Financial management is that area of business which deals with the effective
management of all the resources of an establishment in monetary terms. It involves
keeping account for all the transactions made, also recording any information to enable
the decision making on equipment, employees, purchasing sales and other areas of the
canteen management. The term accountancy is used to describe the process of
measuring in the financial terms the past, present, and future operations of a business. It
helps to assess the financial status of on organization at any particular point in time.
The term management accounting covers more than just the preparation of financial
statements or accounting reports. It is concerned with the interpretation of reports and
their presentation in a form that will enable canteen management to make profitable
decisions about utilization of resources.
every stage and for the decisions to be made effectively, budgeting men, manner,
materials and processes is required.
Under the following main account headings, The costs are collected periodically.
(a) Provisions like - Meat, eggs, fish, vegetables, fruits, flour, rice, milk
vegetable oil, tea, coffee, sugar, soft drinks, etc.
(b) Wages and salaries of Labour Supervisor, cooks, waiter, kitchen
assistants, porters.
(c) Services as Gas, power, electricity, steam, water, light.
(d) Consumable Stores such as Table linen, cutlery, glassware, crockery,
cleaning materials, brushes, dustbins, etc.
(e) Miscellaneous Overheads like - Rent and rates, depreciation insurance
premium, etc. The sale of meals and subsidy is the source of revenue for the
canteen. Usually coupons of different colours are issued to workers, according
to the type of meal provided.
The receipts from running a canteen include company subsidy and sale
from provisions. A proper budget should be prepared starting from the volume of the
services to be rendered. Since the production of the canteen is mostly perishable, care
should be taken to avoid excess waste or supply as much as possible.
Mostly the canteens are subsidized i.e all costs are not borne by the
workers. For this reason from the total cost, subsidy and sale of coupon is deducted to
arrive at the profit or loss of the canteen. It is difficult to give format of the Canteen
cost sheet which will hold good in all circumstances. The required format should be
developed based on the specimen format given above.
Cost accounting with the objects of fixing prices for main meal, snacks,
tea etc. is difficult to organize because it requires equating one type of food with
another so that a common denominator can be obtained to determine the average cost
per meal. However, if such a common denominator cannot be ascertained, costs may be
expressed in terms of per employee to facilitate control. Though, it is difficult to
calculate the cost per meal the canteen supervisor with his experience can estimate the
cost involved for each type of meal provided. The canteen supervisor should have the
knowledge and judgment about the number of meals that can be served with various
combinations of meat, fish and vegetables and how many cups of tea can be provided
with certain quantity
of tea leaves and certain litres of milk. Thus the entire decision making is mostly left
upto the canteen supervisor who mostly handles situation single handedly.
Moving average charts for the main heading of expenses and income
received from various type of meals helps to keep a watch on trends. A moving average
charts can be prepared as below.
Note : The first figure against February in the 3rd column is the total of data for January,
February and March. The three months moving total for March is obtained by
discarding data for January and adding data for April. Each time while calculating a
moving total, the data is discarded for the 1st of the previous 3 months and data for the
month which is next to the last of the previous 3 months.
The moving total and the moving average are placed at the center of the time span
from which they are computed. The total data of January, February and March is placed
against February.
EXAMPLE
The industrial canteen in an industrial unit is run for the benefits of its workmen and
provides necessary subsidy to the canteen.
During the month of August 2000 the following purchases were made.
The other expenses for the month were : Rickshaw fare Rs. 200, Salary to cook
(1) Rs. 2500 per month, Wages to waiters,
(2) Rs. 1500 per month each, Supervisors Salary Rs. 3000 per month.
Fuel, Gas, Coal etc. Rs. 4000, Miscellaneous expenses-crockery and glassware
Rs. 1000. Depreciation of Utensils and Furniture Rs. 500, Sale of coupons @
Re. 0.15 per coupon.
Prepare Trading and Profit and Loss Account of the Canteen for the month of
August 2000 and find out the amount of subsidy paid by the company.
Tea Sugar Atta
Opening Balance 2 kg 10kg 30kg
Closing Balance 1kg 5kg 20kg
Solution :
Rs. Rs.
To Opening Stock By Sales 7,800 @ Rs.2.15 16770
Tea 2 kg x 160per kg 320 Closing Stock
Sugar 10 kg x 30 per kg 300 Tea 1x 160 = 160
Atta 30 kg x 20 per kg 600 Sugar 5x30 = 150
To Purchases : Atta 20 x 24 = 480 790
Tea 4 x 160 640
Sugar 50 x 30 1500
Milk 60 x 20 1200
Atta 210 x 20 4200
Flour 20 x 30 600
Vegetable 3 x 20 60
Besan 21 x 40 840
Dal 30 x 38 1140
Potato 90 x 16 1440
Green Veg. 17 x 20 340
Spices 2 x240 480
Fuel, Gas, Coal etc. 4000 By Net Profit / Loss -
Rickshaw fare 200
17560 17560
Major policies are conceived and planned at the higher management and
then each policy decision passes through different channels and processes to the person
All plans chalked out for the establishment to run smoothly will come to
nothing, if they cannot be interpreted and understood by the people who have to carry
them out.The ability to carry information or messages to others is known as
communication. It is an important tool of management when dealing with people. Yet it
is the most difficult to achieve effectively. In the catering establishment,
communicating is central to unifying all the different activities which interplay in the
achievement of goals. Communication is a two way process and is completed when
there is the same response from the receiver of the information which the sender desires
to communicate. The types of communication on the basis of expression are verbal,
non- verbal, written, formal and informal communication. Oral directions, instructions
and commands, written letters, memos, notices, body gestures, facial expressions and
even silence are used to communicate messages from one end to another. The types of
communication on the basis of direction are upward communication, downword
communication and horizontal communication. The barriers of communication are
uncertainty, fear complex, cultural background, education and certain other causes and
these need to be removed and break – down in communication needs to be avoided.
The establishment of an effective communication system is essential for every
organization.
remedial measures to be taken to achieve the targets allotted. The lower level staff will
report orally to the middle level management. The waiters will report to the steward or
the head waiter. The utility staff will report to the head amongst them. The manager
will seek reports from the store, the kitchen and the service area. The upward reporting
will enable the manager to instruct as required. The manager in his turn will have to
report to the upper level management. The submission of written reports to the canteen
committee or management will have to be carried out in the periodic sequence. The
submission of accounts is reporting on the financial front and is to be carried out as
stipulated in the policy framework of the catering establishment. Reporting is the task
crucial in management but equally crucial is the fact of ‘who’ reports to ‘whom’.
Management
CO- ORDINATION
COMMUNICATING Lower Level Management CONTROLLING
REPORTING
The management structure is the out come of putting people and jobs
together and therefore represents the entire team involved in the running of the
establishment both at the operational and management levels. Any organization needs a
well set detailed structure, having functions logically arranged to achieve maximum
efficiency. The two types of authority relationships that most often exist in food
services are line and line staff relationships. In the line structure each individual is
responsible to the person ranking above him on the structural pattern. Thus authority
and responsibility are passed downward. In the line and staff pattern, specialists are
positioned at various levels to advise those along the line structure as the activities of
the establishment get diversified. The expertise of staff is utilized to maximize the
efficiency of line personnel to the utmost.
Management
Manager Manager
PYRAMID
Personnel ORGANISATION
Accounts SERVICE
Service PRODUCTION
Kitchen
MATERIALS
Store