F and B Labour Cost

HH202- F&B and Labor Cost Control September – December 2022
ASSIGNMENT
S.N Student’s Name Students’ ID
1. Kashmita Bajracharya 1935004
2. Liza Newa 1935002
3. Maneek Maharjan 1934010
4. Rhea Shree Pradhan 1935032
5. Salina Pandey 1935003
6. Lucky Neupane 1935017
Lecturer Name : Mr. Dinesh Shrestha

Programme Title : BA (Hons) in Hospitality Management
Subject Code & Title : HH202- F& B and Labor Cost Control
Session : September – December 2022
Assignment Topic : ASSIGNMENT
SUBMISSION DATE : November 21, 2022
ATTENTION:
1) 1 day late from the date of submission - 25% will be deducted.
2 days late from the date of submission - 50% will be deducted.
More than 2 days late from the date of submission - “0”grade will be awarded
2) Plagiarism - The University will not tolerate cheating, or assisting others to cheat, and
views cheating in coursework as serious academic offense. The work that a student submits
for grading must be the student’s own work, reflecting his or her learning. Where work
from other sources is used, it must be properly acknowledged and referenced.
Acknowledgement
We would like to extend our sincere and heartfelt gratitude to our lecturer Mr. Dinesh Shrestha
of F&B and Labor Cost Control who has helped us in this endeavor and has always been very
cooperative and without his help, guidance and encouragement, the assignment component
couldn’t have been what it evolved to be. We extend our heartfelt thanks to our coordinators for
their guidance and constant supervision, as well as, for providing us the necessary information
regarding the assignment. We are also thankful to our parents for their unconditional love,
support and blessings. At last but not least, gratitude to all our friends who helped us to complete
this project within a limited time frame.
Table of Contents
1. INTRODUCTION OF HANKOOK SARANG...................................................................................1

1.1 FOUNDER OF HANKOOK SARANG............................................................................................1
1.2 MENU...............................................................................................................................................2
1.3 LOCATION.......................................................................................................................................4
1.4 MISSION..........................................................................................................................................4
1.5 VISION.............................................................................................................................................4
2. PROFIT AND LOSS STATEMENT OF THE OUTLET....................................................................5
3. COST PERCENTAGES OF THE OUTLET.......................................................................................6
4. STANDARD PROCEDURES OF PURCHASING/RECEIVING/ STORING/ISSUING AND
PRODUCTION...........................................................................................................................................7
4.1 Standard Procedures for Purchasing Food in the Outlet.....................................................................7
4.2 Standard Procedures of Receiving Food in the Outlet.......................................................................9
4.3 Standard Procedures of Storing Food in the Outlet..........................................................................10
4.4 Standard Procedures of Issuing Food in the Outlet..........................................................................11
4.5 Standard Procedures of Production of Food in the Outlet................................................................11
5. CONTROL SYSTEM AND CONTROL TECHNIQUES USED BY HANKOOK SARANG.........12
6. SYSTEMS USED FOR RECORDING THE COST AND SALES...................................................15
7. CONCLUSION.................................................................................................................................17
8. REFERENCE....................................................................................................................................17
1. INTRODUCTION OF HANKOOK SARANG

Hankook Sarang restaurant is the destination for those who want to enjoy authentic Korean food
in a harmonious environment in Nepal. The restaurant has been serving simple nutritious and
Korean culture dining since its establishment. The first Korean restaurant venture was
established in 2002. Hankook Sarang means Korean love so the restaurant has been serving the
food with love. The founder Chijman Gurung is serving the best recipes and traditional Korean
dishes since its establishment. The word ‘Hankook’ and ‘Sarang’ literally translate to ‘Korea’
and ‘Love’ respectively. Hankook Sarang’s logo has an eccentric significance behind it. Red and
blue represent the national colors of Korea. The remaining colors are symbolic of various spices
used in Korean cuisine. Likewise, the curves in the colored symbols represent the clouds above
Himalayas, whereas the Resonating with the name, Chij Man boasts a simplistic yet emotive
tagline of the restaurant – “Love From Korea”, apertures pointing towards the middle signify
chopsticks, and the circle in the middle shows a table with people surrounding it. In unison, the
logo manifests an amalgamation of the Korean and Nepalese culture; A Korean food sanctuary
for adventurers descending the majestic heights of the Himalayas.
1.1 FOUNDER OF HANKOOK SARANG

The owner of Hankook Sarang, Chij Man Gurung, hails from a rural Gurung village near
Pokhara called ‘Luwang Gaun’. He embarked to Korea 28 years ago with the hope of earning a
good living for his family. While his dreams came true working at restaurants in Korea, the
yearning to establish a business back home led to the inception of Hankook Sarang in 2002 at
Lakeside, Pokhara, with a branch in Thamel. At last, Chij Man was compelled to sell the
restaurant in Lakeside due to the underlying Maoist insurgency. Exacerbating the matters, the
branch in Thamel had to cease its activities owing to a difference of opinion between the
business partners. Determined to succeed at all costs, Chij Man acquired the brand name for
himself and began a new journey with Hankook Sarang Korean Restaurant at Naxal in 2018.
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1.2 MENU
At Hankook Sarang Korean Restaurant, they take pride in serving you the finest Korean food.
Their menu is never-ending, and they’re always adding new dishes to their repertoire, so your
taste buds will never get bored. Their chefs have been trained in the art of the preparation, and
they use only the freshest ingredients to create their dishes. They offer a wide variety of options
for all types of taste buds: Sweet, savory, and spicy
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1.3 LOCATION
Hankook Sarang is located in two major places, which is Tangal and Thamel.
1.4 MISSION
Hankook Sarang’s mission is to serve the century-old culture of authentic, nutritious, and
sumptuous Korean culinary experience to its customers.
1.5 VISION
Envision the rapid growth in the F&B Industry in the future and look towards possibilities of
opening more restaurants and/or sharing knowledge through management handling and
distributing franchise outlets. They seek more people to benefit from our knowledge, skill, and
strength to become independent entrepreneurs. Create a successful business expanse with top-
level service through their own units, managed business, and franchised outlets, backed by
International Consultants and integrated team of Nepal and hope to create a significant volume of
employment opportunities to Nepali Youths by providing them skills through their pieces of
training and in-house working opportunities.
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2. PROFIT AND LOSS STATEMENT OF THE OUTLET

A simplified statement that details revenue, expenses, and profit, for a given period of time, is
called the profit & loss statement (P & L). It lists revenue, food & beverage cost, labor cost,
other expense, & profit.
P/L Statement
For Hankook Sarang Restaurant
For the month of October 31, 2022
Sales/ Revenue Amount (Rs) Amount (Rs)
Food Sales 595,000

Beverage Sales 200,500
Total Sales 615,500
Cost of Sales
Food Cost 135,500
Beverage Cost 90,000
Total Cost of Sales 225,500
Gross Profit 390,000
Controllable expenses
Salaries & Wages 175,000
Employee benefits 30,000
Other Controllable expenses 50,000
Total controllable expenses 255,000
Income before Tax/ Occupancy cost, Interest, 135,000
Depreciation and Income tax
Occupancy Cost 40,000
Depreciation 20,000
Interest 15,000
Total non-controllable expenses 75,000
Restaurant Profit Rs 60,000
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3. COST PERCENTAGES OF THE OUTLET

a. Food Cost Percentage (%) = Food Cost x 100
Food Sales
= 135,500 x 100
595,000
= 22.77%
The food cost percentage is calculated by dividing food cost by food sales. The food sales of the
restaurant is more than the food cost that's why the Restaurant is on profit.
b. Beverage Cost Percentage (%) = Beverage Cost x 100
Beverage Sales
= 90,000 x 100
200,500
= 44.88%
The beverage cost percentage is calculated by dividing beverage cost by beverage sales. The
beverage sales of the restaurant are more than the beverage cost that's why the Restaurant is on
profit.
c. Labor Cost Percentage (%) = Salaries & Wages + Employee benefit x 100
Total Sales
= 175,000 + 30,000 x 100
565,500
= 33.30%
The labor cost of the Restaurant is calculated by adding the salaries & wages and employee
benefits divided by total sales.
d. Prime Cost Percentage (%)
= Food Cost + Beverage Cost + Labor Cost (Salaries & Wages + Employee benefit) x 100
Total Sales
= 135,500+ 90,000 + 175,000 + 30,000 x 100
615,500
= 69.94%
The Prime cost of the Restaurant is calculated by adding food cost, beverage cost, and labor cost
and dividing by total sales. Prime cost is the most important cost of the Restaurant.
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e. Overhead Cost Percentage (%)

= Occupancy Cost + Depreciation + Interest + Other Controllable expenses x 100
Total Sales
= 40,000 + 20,000 + 15,000 + 50,000 x 100
615,500
= 20.30 %
The overhead cost of the Restaurant is calculated by adding occupancy cost, depreciation,
Interest, and other controllable expenses and dividing by total sales.
f. Profit Percentage (%) = Profit x 100
Sales
= 60,000 x 100
615,500
= 9.74 %
4. STANDARD PROCEDURES OF PURCHASING/RECEIVING/ STORING/ISSUING

AND PRODUCTION
Purchasing is the form of buying that consists of getting the goods or services by paying a certain
amount of price or money. The amount of money or price paid in the case of purchasing will be
in accordance with the quality and quantity of the goods or services. A process made up of all
activities associated with identifying needs, locating and selecting suppliers, negotiating terms,
and following up to obtain goods and services.
4.1 Standard Procedures for Purchasing Food in the Outlet
Food distributors, producers, restaurants, and, other food companies often split their attention
between acquiring raw food materials and assembling or processing them into finished goods.
The finished product is obviously important, but you also need to consider the safety, nutrition,
and quality of the ingredients. Accordingly, purchasing is a major area of strategic development
for most food companies; choosing the right suppliers, and the right ingredients and sustaining
that relationship can drastically impact both the profitability and reputation of your company.
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a. Balance cost and quality: The most important choice we’ll make in food purchasing is the
balance between cost and quality (which includes a number of sub-factors). If we opt for the
highest quality available, we might pay so that we’re no longer able to make money, but if
we go too cheap, nobody will want to buy our products. Instead, strive to find some middle
ground: suppliers who are able to give us a good deal on food products that fit the needs and
desires of our target demographics. For some companies, that might mean shopping locally
or through sustainable farms. For others, it may mean looking internationally to find the
perfectly cultivated ingredient. Pay close attention to how the cost of each product will affect
your bottom line.
b. Choose reliable suppliers: Next, we’ll need to choose suppliers who are reliable in multiple
dimensions. They need to ship our products on time, every time, without being reminded and
without error, so we can plan our operations more efficiently. They need to maintain strict
safety and health standards, so we never have to worry about tainted products. They also
need to be available for communication at all times, in case something goes wrong or we
need an emergency resupply. Work only with suppliers we trust sometimes it’s worth it to
pay a little extra for that relationship.
c. Check the details: Before closing a deal, make sure to check all the details. Visit the supply
facility, if we can, to see their operational standards and equipment with our own eyes.
Consider all the variables, and investigate the history of the company to make sure we aren’t
missing something important. Many food manufacturers set strict prices on their raw
materials, but there’s usually no harm in attempting to negotiate. If we’re trying to get a
better deal, they may be willing to offer us a discount based on bulk purchase quantities, or
for a longer-term arrangement. Any wiggle room we get here will result in higher
profitability for our business.
d. Prepare and check a contract: Informal agreements may seem easier, but for large-scale
operations especially, we’ll need a firm contract in place. Set a term for the relationship, set
specific quality standards and operational procedures, and of course, list the prices we’re
agreeing on. Double check everything before signing.
e. Have a stock replacement procedure: Possibly within the contract, we should clarify
exactly how and when our stock is going to need replenished. This is one of the most
important operational considerations for a food manufacturer; without enough ingredients on
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the shelf, we won’t be able to continue with production. We and our supplier need to have a
clear and mutual understanding of when orders are going to be placed, when they’re going to
ship, and when they’re going to arrive. Don’t allow room for misinterpretation here. If we
can, try to simplify our purchasing relationships as much as possible. Working with five
different suppliers may help us get the best prices, but it may also cost us hundreds of extra
hours in additional paperwork (not to mention more stress in communication). Strive for
minimalism in our supplier arrangements.
f. Maintain positive supplier relationships: We’ll also want to take extra measures to keep
our supplier relationships positive and mutually beneficial. Communicate proactively
whenever we can, remain cordial when things go wrong, and don’t be afraid to give or ask
for favors. Good relationships lead to smoother workflows, and faster conflict resolution; it
also means our suppliers will stick with us longer, making our food products more consistent.
4.2 Standard Procedures of Receiving Food in the Outlet
Inspect quantity and weight: All deliveries are measured against the purchase order and
specifications. Under and over-deliveries are recorded in the daily record and dealt with
appropriately.
a. Inspect quality of deliveries: Thorough checks on expensive items (meat, wines, and spirits);
spot checks on products (check the bottom layer of the case for wilted or rotten produce). -
Record daily deliveries: Special attention should be paid to recording off-quality deliveries,
anything that was over or under-delivered, or deliveries of items that have passed their expiration
date.
b. Handle items following proper storage procedures: Mark what goes into the freezers, cold
rooms, and general storage. Making sure that rotating inventory procedures are followed. -
Prepare the necessary paperwork: This includes double-checking the delivery form to make sure
that all the discounts and corrections have been applied; preparing paperwork for unsatisfactory
items, and delivering the necessary documents to accounts.
4.3 Standard Procedures of Storing Food in the Outlet
a. Cross contamination can be a killer: This is literally the case and there have been several
instances of multiple fatalities where the root cause was likely to have been cross contamination
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during preparation or storage. Washing, where appropriate, and the correct storage of foods prior
to serving, will reduce the risk considerably. The hierarchy of storage in a fridge is also vital.
Where food is stored in a standard refrigerator you should have high risk items at the top, and
meats at the bottom. This is to help prevent fluid from the meat dripping onto the food below.
Raw meats and fish should always be stored where they cannot contaminate other foods.
b. Cover or wrap and return food to storage as standard practice: Food left out in the open
is a tempting treat for pests and more liable to cross contamination. It seems such an obvious
thing to do, but it is very easy to forget to cover your foodstuffs in a busy catering environment.
When you are not using a food item, return it to the fridge or storage area. This is about more
than freshness. When handling meat and fish it is easy to accidentally splash juices around, touch
the wrong thing or use the wrong utensil. Uncovered food can easily be contaminated so cover
and store as much as possible.
c. Refrigerate or freeze cooked food as soon as possible and always within two hours: From
the moment your food drops into the danger zone (below 63c) bacteria will start to multiply.
They can spread at an amazing rate so you need to slow that down as much as possible and put
them in the fridge or freezer where the low temperatures discourage their development. So as
soon as the food has cooled enough it should be placed in cold storage.
d. Seal and close appropriately: One of the important factors in ensuring that your storage
is effective is the seal you create around the food. Airtight containers with sealing lids will
ensure that there are limited opportunities for cross contamination to occur. Plastic wrap should
cover all the food or totally enclose the item. Do not allow raw food to come into direct contact
with the shelves in the fridge where they can either spread or pick up bacteria.
e. Time and date anything that may be used in the future: If you visit a well-known chain
sushi restaurant you will notice that all the domes on the belt items are very clearly marked with
a time of production. This is to ensure that the food inside is taken off the belt before it reaches a
point where it is no longer guaranteed to be safe. Shops have use by dates for the same reason.
You should adopt this in your own practice and time and date anything that may be used later.
4.4 Standard Procedures of Issuing Food in the Outlet
All items are issued against requisitions prepared and signed by authorized person. The
requisitions are pre-numbered and are in triplicate, the copies are distributed as follows original-
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store, duplicate- department, triplicate- book copy. The storekeeper is intimated about persons
who can sign and authenticate requisitions. The storeroom register is updated after issuing of
goods.
4.5 Standard Procedures of Production of Food in the Outlet
There are several forms of food production that are used today. However, while some of them
can be practiced by the cooks at home, others need specialized industrial equipment. Food
production and food processing though interrelated are two different terms. But they often
overlap each other and a process can be used for both processing and producing. Food
processing particularly refers to the processes used for changing the raw materials into finished
edible products. Food production on the other hand refers to processes for making the food ready
to eat. So, it can be said that cooking is a term generally used for food production. Food
production also incorporates in itself the steps that are involved in preparing a meal from the
grocery products. Some methods of food production are mentioned below:
 Slicing
 Cutting and chopping
 Marinating
 Boiling
 Broiling
 Fermenting
 Curing
 Emulsifying
 Frying
 Grilling
 Steaming
 Mixing
 Grinding
5. CONTROL SYSTEM AND CONTROL TECHNIQUES USED BY HANKOOK
SARANG
Control Systems and Control Techniques used by the Management to Control the Costs and its
importance. Restaurant food cost is pivotal to a business’s financial success. Everything from
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inventory management to recipe costing plays a role in controlling your cost of goods sold
(CoGS). While we may have already implemented some techniques, like inventory management,
there is an almost infinite level of detail you can dive into to refine your food costs. These
techniques are more important than ever and can play an influential role in your restaurant’s
success
a. Regularly schedule inventory checks: Whether you start with the basics of restaurant
inventory management or move to a more advanced level, one of the most important things
your restaurant can do is schedule regular inventory checks. At a basic level, counting
inventory at even intervals ensures that inventory comparisons make sense. For example,
instead of counting by day of the week, counting every Monday will give you consistent
background information at regular intervals. It is the basis for all other advanced food cost
control techniques in restaurants.
b. Prioritize accurate recipe costing: To keep food costs down, you need to understand the
exact cost of the meals you serve. Recipe Calculator analyzes the usage and yield of each
food item, so you can calculate individual ingredients down to the dime. As we have more
data, we can begin to understand the cost percentages of individual ingredients. For example,
if you have multiple food recipes that include tomatoes in one menu item, the cost
percentages for that ingredient will not be the same for each individual cooking style.
Tomato sauce, pico de gallo, and chopped tomatoes can all be layered in one menu item, but
you need to consider the usage and yield of that ingredient to figure out your actual spending.
Once you know the cost breakdown for this recipe, you can find out the profit margin for the
menu item. We have a target profit margin, but it's not an abstract number. Partly based on
the target cost of groceries. So if you know your ideal profit margin, you know what to spend
on recipe costing to reach that goal. Maximizing recipe efficiency is a unique goal for your
restaurant. You may need to check recipes, team prep efficiency, list of suppliers, or menu
item prices. There are different areas, but whatever you choose, optimize your food use.
Significantly automating this process of estimating recipes saves your team time and
improves accuracy.
c. Track actual vs. theoretical usage (AvT): Tracking your inventory regularly will tell you
how many physical products you have used. However, you also want to know how much
inventory is actually used when an employee presses a button on your point of sale (POS)
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system. By integrating the POS with inventory management software, POS sales data can be
used to calculate theoretical inventory usage based on menu items ordered by customers.
With accurate recipe information (more on that later), you can see how much of the product
you're theoretically using and how much you're actually using. Comparing these two data
points will tell you if the restaurant's inventory is out of order, based on the number of times
the system's button is pressed. The difference between actual food cost and theoretical food
cost (AvT) can be important here. Examining this point of comparison is an easy way to see
the impact on grocery costs. Applying the numbers to actual inventory usage provides an
opportunity to examine the 'why' behind food cost fluctuations (reductions, scrapping,
contract price breaks, etc.). In multiple locations, he can also compare AvT to focus on where
help is most needed
d. Train staff on the importance of restaurant inventory control: In order to have
confidence in regular and consistent inventory counts, it is important to focus on thorough
employee training. With the right "best practice" system in place, you can ensure accurate
results regardless of who is doing the inventory. First, a system that produces accurate
information means management has more time to focus on other areas rather than just
counting. A restaurant inventory management system gives managers the time they need to
improve portioning accuracy and monitor food waste. Additionally, staff training on
restaurant inventory really adds value to the entire business. Activities like using waste logs
and tracking food production are opportunities to prepare your team for the more metrics-
centric aspects of your restaurant business.
e. Leverage smart forecasting tools: Now that you have a POS integration and an accurate
recipe, what do you do with that information? Forecasting looks at the same sales data from a
different perspective. Predictive tools help you buy groceries, beverages, and supplies at the
right level. By tracking past sales, you can use this information to predict what you will
purchase in the next comparable sales period. For example, following certain rules when it
comes to preparation is an expensive strategy due to the "it's always been done that way"
mentality. This mindset leads to overprovisioning and wasted products (and dollars) put on
the shelf for fear of running out. Forecasting helps you reduce waste and maximize efficiency
by breaking away from the standard inventory mentality of always being “busy.” Anticipate
expectations when using intelligent forecasting tools. You're not out of stock, but you're not
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connecting Monday's minimum with Saturday's minimum. Order your expected usage based
on daily averages to account for fluctuations. Additionally, adjusting food costs can also
affect labor costs, especially when it comes to preparation. The line between the cost of
goods sold and labor costs is fluid. If you have a data-driven understanding of how much
preparation is required, you can better allocate work to those preparation times. Predictive
automation is the key to making your team more efficient. Confidence in data allows
managers to look at dashboards and make decisions instead of gathering data in spreadsheets
in the office.
f. Track food waste: Food waste can come from many different locations in your restaurant.
Accidents are inevitable in a fast-paced environment like the kitchen. B. When an employee
drops the product. However, there are other areas of food waste that could be addressed,
given the data. You can't fix what you don't track. Using multiple waste tracking strategies,
from line clipboards to POS spillage comp buttons, is an opportunity to identify opportunities
for improvement over time. We may not reach absolute perfection, but we can always close
the AvT grocery cost gap.
g. Review vendor contract prices: Suppliers have a big impact on restaurant food costs. There
are many automation tools available in your restaurant accounting software for your supplier
relationships. Restaurant management solutions can also automatically track supplier price
changes for recipe costing. These things help ensure transparency and accuracy in the
relationship. But as we start collecting more data on grocery costs, we can also take a look at
our long-term pricing structure over time. For example, we have a region that uses a lot and
we can discuss price reductions. Or maybe there are certain products that have fallen short
over time, impacting contract negotiations on future pricing. More data just makes vendors
more accountable. You can also make long-term strategic decisions.
h. Review selected inventory daily: The better the data, the more "micros" you can achieve
with your adjustments. For example, you can focus on articles with high CoGS and single out
5-10 article "hot counts" that are marginally more important than anything else from a
reporting perspective. Paying special attention to certain commodities, especially high-
volume commodities and high-value proteins, is a simple first step in inventory management
that can have a significant impact on grocery costs. Count every day, check your numbers
every day and improve them. These types of reports are based on restaurant inventory
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management and accounting data and may require adjustments over time. We may need to
coordinate and coordinate our deals with vendors to avoid product waste. Certain products
may not be grouped together and may need to be ordered in separate delivery cycles.
i. Use menu engineering to improve profit margins: Once you've addressed the efficiency
and accuracy of your restaurant's inventory and addressed key differences, it's time to look at
what you're selling and explore menu design possibilities. Menu engineering relies on polling
sales configuration from the POS. An analysis of popularity and profitability reveals popular
items with low-profit margins and popular items with low-profit margins. You can see that
there are products that are expensive and not very popular. Small adjustments to the
placement of these items on your menu (whether in print or online) can greatly increase your
bottom line. Information from recipe costs or supplier contract prices can also be used to
make other adjustments to recipes by modifying servings or ingredients. As always, food cost
management relies on data points from various systems, so an all-in-one restaurant
operations software platform can help ensure accurate information.
j. Calculate your average daily inventory cost: This allows you to start thinking about
restaurant inventory as more of a fixed cost (at least in your head). From here, you can
understand the dollar amount of inventory your restaurant goes through for a set sales
amount. Then, you are equipped to train your team to answer questions before ordering. How
much inventory should be on the shelf? How much do we need in between deliveries? These
types of questions can help your team refine your food cost over time from the store level
and up.
6. SYSTEMS USED FOR RECORDING THE COST AND SALES
For their restaurant Hankook Sarang use POS system. The term POS refers to the time and
place - or point - at which a sales transaction is completed. A restaurant point of sale system
consists of POS hardware and hospitality point of sale software that manages sales
transactions, such as credit card processing and receipt printing. Restaurant POS systems are
designed specifically for the restaurant industry, as opposed to retail or
hotel establishments. A modern restaurant POS system can help you streamline internal
operations, connect all of the different personnel involved in running your restaurant
smoothly, and automatically track sales, labor, and inventory metrics. This increases revenue,
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profit, and customer satisfaction while decreasing employee turnover, order errors, wait time,
and stress levels.
POS system can bring to your business.
1. Payment processing: Payment processing is what most people think of when they hear the
term POS system. For most businesses, this is the No. 1 feature they need from a reliable POS.
There are multiple ways a POS system can facilitate a transaction. The most basic payment
processing functionality is online debit card and credit card processing. E-commerce companies
can leverage point of sale systems to make money through online transactions. Then there are
brick-and-mortar businesses. These types of stores will need credit card readers with the ability
to accept multiple forms of credit card payment. The most basic is a magstripe card reader. These
are the traditional credit card swipers we’re used to seeing in stores. It’s important that business
stays at the forefront of payment solutions. You’ll need to accept several payment methods if you
want to keep up with the spending habits of your customers.
2. Transaction management: There are a few aspects of transactions that you’ll need a POS
system to account for. This includes having a navigable inventory database, issuing receipts, and
customer tipping. A crucial component of a POS is the ability to quickly ring up customers and
have them on their way. Your employees gain access to an easy-to-use interface to quickly
complete a customer’s order during the checkout process. For every transaction, you’ll also need
to be able to print a receipt or, at the very least, be able to email a digital receipt to customers.
Some customers may want a physical receipt, while others are content with having a receipt
emailed or receiving no receipt at all. Additionally, if you operate a service-based business,
you’ll need to give customers the option of leaving a tip for your workers. Pre-calculated
percentages or customized tipping options help customer’s rewarr workers for a job well done.
3. Sales reporting: POS systems are a helpful tool for tracking the performance of your
business. POS software can track important business metrics and produce reports that gauge your
financial health. Modern POS systems enable you to run reports that will help you make
informed business decisions. These reports can leverage sales data that will help you optimize
your business operations and streamline a path to profitability. Reporting features can help you
determine which products are selling, what your margins are, and how much money you make
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from month to month. In this day and age, a data-driven approach to business is crucial to stay
ahead of your competitors.
7. CONCLUSION
As per the requirement of the assignment question we choose the outlet named “Hankook
Sarang. Hankook Sarang restaurant is the destination for those who want to enjoy authentic
Korean food in a harmonious environment in Nepal. The restaurant has been serving simple
nutritious and Korean culture dining since its establishment. The first Korean restaurant venture
was established in 2002. Hankook Sarang means Korean love so the restaurant has been serving
the food with love. Total sales of the oultet for the month of october is Rs.615, 500 whereas total
cost of sales is Rs.225, 500 and average restaurant profit is around Rs 60000 per month. 22.77%,
44.88%, 33.30%, 69.64%, 20.30% and 9.74% are the percentage of food cost, beverage cost,
labor cost, prime cost, overhead cost and profit percentage respectively. Restaurant follow the
standard procedures of issuing by updating the register after issuing goods, by maintaining the
triplicate-book copy. Restaurant choose reliable suppliers, balance cost and quality, check the
details, prepare and check a contract, maintain positive supplier relationship, follow a stock
replacement procedure while purchasing the stuffs for the outlet. Marco-polo restaurant control
the cost by checking the regular schedule of the inventory, by prioritizing the accurate recipe
costing, tracking actual usages and they even train their staff on the importance of restaurant
inventory control. They review vendor contract prices and select inventory daily and even
calculate average daily inventory cost.
8. REFERENCE
 Hankook sarang Korean restaurant. Hankook Sarang Korean Restaurant. (2022, August 14).
Retrieved November 18, 2022, from https://hankooksarang.com.np/
 Food and Beverage Services - Operations. Tutorials Point. (n.d.). Retrieved November 19,
2022, from
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F and B Labour Cost

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HH202- F&B and Labor Cost Control September – December 2022

Lecturer Name : Mr. Dinesh Shrestha

1. INTRODUCTION OF HANKOOK SARANG...................................................................................1

1. INTRODUCTION OF HANKOOK SARANG

1.1 FOUNDER OF HANKOOK SARANG

2. PROFIT AND LOSS STATEMENT OF THE OUTLET

Food Sales 595,000

3. COST PERCENTAGES OF THE OUTLET

e. Overhead Cost Percentage (%)

4. STANDARD PROCEDURES OF PURCHASING/RECEIVING/ STORING/ISSUING

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