FOOD AND BEVERAGE COST CONTROL

CHAPTER 4
FOOD PURCHASING AND RECEIVING CONTROL
DHM
 Food Purchasing Control
Responsibility for Purchasing
The responsibility of purchasing can be delegate to any
one in the foodservice operation depending on
organizational structure and management policies.
Control Process and Purchasing
Four steps in the control process apply here:
1. Requiring that standards and standard procedures
be established
2. That employees be trained to follow those standards
and standard procedures
3.That employee out-put be monitored and compared
to established standards
4. Remedial action be taken as needed
69
 Food Purchasing Control

Perishable and Non-perishable

Perishable are those items, typically fresh foods, that
have a comparatively short useful life after they have
been received. Should be purchased for immediate use
only as they deteriorate quickly.

Non-perishable are those food items that have a

longer shelf life. Often referred to as groceries or
staple. They may be stored in the containers in which
they are received, stored on shelf at room temperature
for weeks or months. They do not deteriorate quickly.

70
 Developing Standards & Standard
Procedures
Establishing control over purchasing ensure a continuing
supply of sufficient quantities of the necessary foods,
with each of quality appropriate to its intended use and
purchase at the most favorable price.
Standard must be develop for:
1. The quality of food purchased
2. The quantity of food purchased
3. The price at which food is purchased

71
 Establishing Quality Standards

•It is important first to determine which perishable &

non-perishable food is required in order to produce
products of consistent quality.
•Thus it is important to draw up the list of all food
items to be purchased, including those specific and
distinctive characteristic that best describe the desired
quality of each in written description also known as
standard purchase specifications.
•It is usually base on federal grading or common
market grading.

72
 Establishing Quality Standards
Through Standard Purchasing Specification :
1. To determine exact requirement in advance for any
products
2. To purchased according to specification to prepare
several different items on the menu.
3. They eliminate misunderstanding
4. To have standard competitive bidding
5. They eliminate for detail verbal description
6. To facilitate checking food as it is received.

73
 Establishing Quantity Standard

•Quantity standard for purchasing are subjected to

continual review and revision, often on a daily basis.
•Perishable Item .The correct amount must be
purchased to avoid wastage.
•A basic requirement of the purchasing routine is to
take daily inventory of perishable.
•The routine requires that determinations be made of
anticipate total needs for each item, base on future
menus and often on experience as well.

74
 Establishing Quantity Standard
Non-perishable items does not present the problem of
rapid deterioration, the do represent considerable amount
of money invested in material in storage. The goal here is
to avoid excessive quantities on hand. Through proper
planning.

The ways to maintain inventories of non perishables at

appropriate levels, most are variations on two basic
methods:
1. Periodic order method
2. Perpetual inventory method

75
Periodic order method
 A method for ordering food or beverages based on fixed
order dates and variable order quantities. The calculation
of the amount of each item to order is comparatively
simple:
Amount required for the upcoming period
-Amount presently on hand
+ Amount wanted on hand at the end of the period to
last until the next delivery
=Amount to order
Periodic order method
orders for non perishables are placed every two weeks, one of the
items ordered is crushed tomatoes, purchased in cans, packed 6
cans to a case. The item is used at the rate of 7 cans per week,
and delivery normally takes five days from the date an order is
placed. If the steward in this establishment found 9 cans on the
shelf, anticipated a use of 14 cans during the upcoming period
of approximately two weeks, and wanted 10 cans on hand at the
end of that period, the calculation would be:

14 cans required
- 9 cans on hand
+10 cans to be left at the end of the period
(desired ending inventory)
= 15 cans to be ordered on this date
 Both delivery time and daily usage for the period must be used to
determine the DEI. Furthermore, it is advisable to include some
additional quantity to serve as a safety factor, just in case the
normal delivery is delayed or business volume is higher than
expected in the coming period. For the example given, the
calculations for DEI would be as follows:

 Daily usage X Number of days in delivery period = Normal usage

 Normal usage + Safety factor (50%) =DEI
 14 cans per week ÷ 7 days = 2 cans per day
 2 cans per day X 5 days in delivery period = 10 cans normal usage
 10 cans normal usage + 50% safety factor =15 cans DEI
 This is known as the Reorder Point in the Perpetual Order Method
 Establishing Quantity Standard

Perpetual Inventory Method

1. To ensure that quantity purchase are sufficient not excessive
2. To provide effective control on stored item for the future.
The reorder point is quite simply the number of units to which
the supply on hand should decrease before additional orders are
placed.
The Par Stock means simply the maximum quantity of a given
item that should be on hand. This helps to
1. Storage space
2. Limits on total value of inventory
3. Desired frequency of ordering
4. Usage
5. Purveyors’ minimum order requirements

79
 Establishing Quantity Standard
 Reorder point is calculated in the following manner. If normal usage
is 14 cans per week and it takes five days from date of order to get
delivery, then the basic number of cans needed is 10. However,
because delivery may be delayed, because usage may increase for
unforeseen reasons, or because both of those possibilities may
occur at once, it is advisable to increase that amount somewhat.
 The amount of the increase is a matter for management to decide.
For our purposes, we will use 50 percent for all calculations. If that
were so in this case, the reorder point would be set at 15 cans.
Under the periodic method, the DEI would similarly be calculated as
15 cans.
Par stock 20
-Reorder point 15
=Subtotal 5
+Normal usage until delivery 10
=Reorder quantity 15
80
 Establishing standard for Price
The availability of sources of supply varies considerably from one location to another.
It depends on ownership policy, availability of supplies and general market condition,
supplies can be choose from:
•Wholesalers
•Local producers
•Manufactures
•Packers
•Local farms
•Retailers
•Cooperative association

Perishable because prices for perishable often fluctuate daily it is necessary to find the
price from different supplier through telephones.

Non-Perishable normally with fewer suppliers with lowest price and consistent quality,
small quantity & delivery wise.

81
 Centralized Purchasing
This is usually used in chain operations and occasionally established by small groups
of independent operator with similar needs/
Advantage.
•Purchased at lowest price because of volume
•Desired quality as agent has greater choice
•Obtain exact specification
•Larger inventory ensuring reliable supply
•Dishonest greatly reduced.
Disadvantage
•Little freedom for its particular needs
•No advantage on local specials at reduce price
•Limiting changes of menu.

82
 Food Receiving Control
INTRODUCTION
The primary objective of receiving control is to verify that quantities, qualities
and price of food delivered conform to orders placed.
The person that usually responsible for this job is given the job title as
“receiving clerk’.

Establishing standard for receiving

Established standards to govern the receiving process are:
• The quantity delivered should be the same as the quantity listed on order forms
and also should be identical as the quantity listed on the invoice or delivery bill.
•The quality of item delivered should conform to the establishment’s standard
purchase specification for that item
•The prices on the invoice should be the same as those stated on the order form

83
 Establishing standard for receiving
THE INVOICE
A bill from a vendor for good or services, often presented as the goods are
delivered or the services performed.

INVOICE. Gunasemula Company. 230 Kampung Saya

To: The Sugar & Spice Café
Jalan Haji Taha. Date: June 12th

Quantity Unit Description Unit Price Amount

30 biji Durian 8.50 255.00
10 kg Striploin 12.35 123.50

Received By:___________________ Date: ___________

84
 Establishing Standard Procedures for receiving

Example of Standard procedure for receiving

1. Verify that the quantity, quality and price for each item delivered
conforms exactly to the order place
2. Acknowledge that quantity, quality and price have been verified
by stamping the invoice with the rubber invoice stamp provided
for that purpose
3. List all invoices for foods delivered on a given day on the
Receiving Clerk’s Daily Report for that day, and complete the
report as required, or enter appropriate information directly into
a computer terminal
4. Forward complete paperwork to proper personnel
5. Move food to appropriate storage areas.

85
Establishing Standard Procedures for receiving

INVOICE STAMP
rubber stamp used by a receiver to overprint a small form on an
invoice for the purpose of recording the data on which goods
were received, as well as the signature of the several
individuals verifying the accuracy of data on the invoice.
1. Verification of the date on which food was received
2. The signature of the clerk receiving the food who vouches for
the accuracy of quantity, quality and price.
3. The steward’s signature, indicating that the steward knows the
food has been delivered
4. The food controller’s verification of the arithmetical accuracy of
the bill.
5. Signatory approval of the bill for payment by an authorized
86
individual before a check is drawn.
 Sample of a Invoice Stamp

INVOICE STAMP Date:

Received by:
(Receiving Clerk)
Steward:

Price and Extensions Verified:

(F & B Cost Controller)

OK for Payment:
(Account Department)
87
Listing Invoices on Receiving Clerk’s Daily Report
Receiving Clerk’s daily Report is an important accounting
documents.
Food is divided into at least two categories:
•Item Purchase for immediate use – direct (extremely
perishable nature that are purchased more or less daily basis for
immediate use) – and will become the cost immediately.
•Item Purchase to be kept in inventory – store (Meat, cans,
bottles and boxed) – and will become the cost when the item is
issued for production.
The Receiving Clerk’s Daily Report is prepared by receiving clerk,
who merely copies data from each invoice to appropriate columns
on the reported and then enters the total for each invoice into
one of the three columns under the general heading “Purchase
Journal Distribution” – Food Direct, Food Stores or
Sundries.
88
 Receiving Clerk’s Daily Report
Receiving Clerk’s Daily Report No. 1
Date: June 11, xxxx

Purchase Journal Distribution

Direct Food Sundries

Unit Total
QTY Unit Description √ Price Amount Amount Food Stores

Market Price Meats

30 lbs Strip Steak √ 7.95 238.50

10 lbs Breast of veal √ 4.65 46.50

285.00 285.00

Jong’s Farm
10 kg Crocodile Meat √ 2.50 25.00 25.00 25.00

Kau Pun Farm

1 Kg Daun Kucai √ 5.00 5.00

2 Bdl Pucuk Paku √ 2.00 4.00

9.00 9.00

319.00 319.00 9.00 310.00

89
TUTORIALS
1. List 10 items considered perishable and 10 considered nonperishable in the
foodservice industry.
2. Nestor ’ s Restaurant uses the periodic order method, placing orders
every two weeks. Determine the quantity of canned peaches to order
today, given the following:
a. Normal usage is one case of 24 cans per week.
b. Quantity on hand is 10 cans.
c. Desired ending inventory is 16 cans.
3. Harvey ’ s Restaurant uses the periodic order method, ordering once a
month. Determine the proper quantity of tomato juice to order today,
given the following:
a. Normal usage is one case of 12 cans per week.
b. Quantity on hand is 6 cans.
c. Desired ending inventory is 18 cans.
d. The coming month is expected to be very busy, requiring 50 percent
more tomato juice than normal.
TUTORIALS
4. The Midtown Restaurant uses the perpetual order method. One of the
items to be ordered is canned pears. Determine reorder point and reorder
quantity, given the following:
a. Normal usage is 21 cans per week.
b. It takes four days to get delivery of the item.
c. Par stock is set at 42 cans.
d. Cans come packed 12 to a case.

5. The Last Chance Restaurant uses the perpetual order method. One of
the items in the inventory is canned green beans. Determine reorder
point and reorder quantity, given the following:
a. Normal usage is two cans per day.
b. It takes five days to get delivery of the item.
c. Par stock is 29 cans.
d. Cans come packed six to a case.
FOOD AND BEVERAGE COST CONTROL

CHAPTER 5
FOOD STORING & ISSUING CONTROL
DHM
Food Storing & Issuing Control
STORING CONTROL:
ESTABLISHING STANDARDS AND STANDARD
PROCEDURES FOR STORING

In general, the standard established for storing food should

address five principal concerns:
1. Condition of facilities and equipment
2. Arrangement of Food
3. Security of Storage areas
4. Location of Storage Facilities
5. Dating and pricing of stored food

93
 Factor 1. Condition of facilities and equipment

The factor that involves in maintaining proper internal

conditions include:
 Temperature (Key factors in storing food especially for
perishable item)
 Food life can be maximized when food is stored at the
correct temperature and at the proper level of
humidity.

Fresh meats: 34 – 36 ° F (1-2 °C)

Fresh produce: 34 – 36 ° F (1-2 °C)
Fresh dairy products: 34 – 36 ° F (1-2 °C)
Fresh fish: 30 – 34 ° F (-1 to 1°C)
Frozen foods: 10 – 0 ° F (-23 to -18°C)
94
Factor 1. Condition of facilities and
equipment
 Storage Container (Appropriate container especially for staple

food, fresh food and cooked or processed food)

 Shelving (Shelving should be slatted to permit maximum air

circulation for perishable material and solid steel shelving for

non-perishable, and raised a few inches above the floor level)

 Cleanliness (Absolute cleanliness)

 Factor 2: Arrangement of Foods
 Factors involved in maintaining appropriate internal
arrangement of food include:
1. Keeping the Most-Used item readily available. (Kept most
used item closest to the entrance tend to reduce the time
required to move needed foods from storage to
production and thus tends to reduce labor costs.)
2. Fixing definite location
(Each particular item should always be found in the same
location, and attention should be given to ensuring that
new deliveries of the item are stored in the same
location.)
3. Rotation of Stock (FIFO system)
(storing new deliveries of an item behind the quantities
already on hand, thus ensuring that older items will be
used first. This reduces the possibilities for spoilage.)
96
 Factor 3: Location of Storage Facilities
 the storage facilities for both perishable and
nonperishable foods should be located between receiving
areas and preparation areas, preferably close to both. A
properly located storage facility will have four effects:
1. Speeding the storing and issuing of food
2. Maximizing security
3. Reducing labor requirements
4. Minimizing infestation of rodents and other unwanted
creatures

97
 Factor 4: Security

 Food should never be stored in a manner that permits

pilferage. That is another reason for moving foods from
the receiving area to storage as quickly as possible.
 Employees should not be permitted to remove items at
will. Typically, a storeroom is kept open at specified times
for specified periods well known to the staff and is
otherwise closed to enable the storeroom clerk to attend
to other duties.
 When the storeroom is closed, it should be locked, and
the single key should be in the storeroom clerk ’s
possession. In such cases, one additional emergency
backup key is usually kept by the manager or in the
office safe.

98
 Factor 5: Dating and Pricing

 It is desirable to date items as they are put away on

shelves, so that the storeroom clerk can be certain of

the age of all items and make provisions for their use
before they can spoil.
 all items should be priced as goods are put away, with

the cost of each package clearly marked on the

package. Following this procedure will greatly simplify
issuing, because the storeroom clerk will be able to
price requisitions with little difficulty.

99
 Food Storing & Issuing Control
ISSUING CONTROL:
ESTABLISHING STANDARDS AND STANDARD
PROCEDURES FOR ISSUING

There are two elements in the issuing process:

(1) The physical movement of foods from storage facilities

to food preparation areas

Physical Movement of Food from storage facilities is the

movement of food from the storage facilities to the preparation
area. Practices for doing this varies from one establishment to
other establishment due to the management policies and
procedures and priority

100
Issuing Control: Establishing Standard and
Standard Procedure for Issuing
(2) The record keeping associated with determining the cost of
the food issued.
DIRECT
Direct are charge to food cost as they are received directly on
assumption that these perishable item have been purchased for
immediate use. Figures in “FOOD DIRECT” column in Receiving
Clerk’s Daily Report will be calculated directly into the particular
day food cost.

101
Issuing Control: Establishing Standard and
Standard Procedure for Issuing
(2) The record keeping associated with determining the cost of
the food issued.
STORES
The food category known as stores was previously described as
consisting of staples. When purchased, these foods are
considered part of inventory until issued for use and are not
included in cost figures until they are issued. Therefore, it
follows that records of issues must be kept in order to determine
the cost of stores. For control purposes, a system must be
established to ensure that no stores are issued unless kitchen
personnel submit lists of the items and quantities needed.

102
Issuing Control: Establishing Standard and
Standard Procedure for Issuing
(2) The record keeping associated with determining the cost of
the food issued.

The Requisition is a form filled in by a member of the kitchen staff. It

lists the items and quantities of stores that the kitchen staff needs
for the current day ’ s production. Each
requisition should be reviewed by the chef, who should check to see
that all required items are listed and that the quantity listed for each
is accurate. If the list of items and quantities is correct, the chef
signs and thus approves the requisition.

103
 The Requisition Form

Requisition Form Date: 9th Mar 2XXX

Department: Main Kitchen
Quantity Description Unit Cost Total Cost

6 #10 Cans Green Peas $2.79 $16.74

50 Lbs. Sugar 0.39 19.50
40 Lbs. Ground Beef 2.59 103.60
6 Loin Pork (108 lbs. per tag) 3.39 258.12

TOTAL $397.96
Charge to: FOOD Department

___________
Requested by
 Food & Beverage Transfer
 F&B Transfer means the transfer of item intended for a section to
another section that requires it.
 Intra-unit Transfer
are food and beverage transfers between departments of a food
and beverage operation. They include transfers of food and liquor
between the kitchen and bar, and between kitchen and kitchen in
those larger operations that have multiple feeding facilities.

Between Bar and Kitchen

Many kitchens use beverage items such as wine, cordials, brandy, and
even ale to produce sauces, parfaits, certain baked items, and rarebits.
Occasionally, these beverages are purchased by the food department for
use in the kitchen, kept in a storeroom until needed, and then issued on
requisitions directly to the kitchen

105
 Food & Beverage Transfer
 Inter-unit Transfer are transfers of food and beverage between
units in a chain. The two examples that follow illustrate inter unit
transfers and the effect of such transfers on food costs. In some
instances, small chains produce some items (e.g., baked goods) in
only one unit and then distribute those items to other units in the
chain. If the ingredients for the baked goods come from that
particular unit ’ s regular supplies, then some record must be
made of the cost of the ingredients used.

106
FOOD AND BEVERAGE COST CONTROL

CHAPTER 7
FOOD PRODUCTION CONTROL
I. PORTIONS
DHM
Food Production Control I. Portions
 The standards and standard procedures for production control are
designed to ensure that all portions of any given item conform to
management ’ s plans for that item and that, as far as possible, each
portion of any given item is identical to all other portions of the
same item.
 Portion for any given menu should be identical in 4 respect.
1. Ingredients
2. Proportions of ingredients
3. Production methods
4. Quantity

 To achieved the 4 respected areas we need to have

1. Standard Portion Size
2. Standard Recipe
3. Standard Portion Cost
 Standard Portion Size
 One of the most important standards that any foodservice operation
must establish is the standard portion size , defined as the quantity of
any item that is to be served each time that item is ordered. In effect,
the standard portion size for any item is the fixed quantity of a given
menu item that management intends to give each customer in return
for the fixed selling price identified in the menu. It is possible and
desirable for management to establish these fixed quantities in very
clear terms. Every item on a menu can be quantified in one of three
ways: by weight, by volume, or by count.
 Every item on a menu can be quantified in one of the three way:
 By Weight
Can be expresses in ounce or grams used to measure portion sizes for
a number of menu items.
 By Volume
Is used as the measure for portion of many menu items usually that of
liquid in nature, Milk, soup, juices of coffees
 By Count
Used to identify portion size, such as sausage, eggs and shrimps
109
 Standard Portion Size
 Many devices are available to help foodservice operators standardize
portion sizes. Among the more common are the aforementioned scoops
and slotted spoons, as well as ladles, portion scales, and measuring cups.
Even the number scale or dial on a slicing machine, designed to regulate
the thickness of slices, can aid in standardizing portion size: A manager
may stipulate a particular number of slices of an item on a sandwich and
then direct that the item be sliced with the dial at a particular setting

 Advantages for practicing Standard Portion Size

 It helps reduce customer discontent as the customer cannot compare his
or her portion unfavorably with that of other customer and feel
dissatisfied or cheated.
 It help to eliminate animosity of miscommunication between the kitchen
staff and the server over the portion size that lead to delay in the serving
of food.
 It help to eliminate excessive costs of over portioned menu.
 Price on the menu is usually fixed, thus it will also reflect the portion size
of the menu. If the portion size is constantly change then it will
dissatisfied the customer and server.

110
Standard Recipe
 Another important production standard is the recipe. A recipe is a list of
the ingredients and the quantities of those ingredients needed to
produce a particular item, along with a procedure or method to follow.
A standard recipe is the recipe that has been designated the correct one
to use in a given establishment.
 Standard recipes help to ensure that the quality of any item will be the
same each time the item is produced. They also help to establish
consistency of taste, appearance, and customer acceptance.
 the same ingredients are used in the correct proportions and the same
procedure is followed, the results should be nearly identical each time
the standard recipe is used, even if different people are doing the work.
In addition, returning customers will be more likely to receive items of
identical quality.
 Standard recipes are also very important to food control. Without
standard recipes, costs cannot be controlled effectively. If a menu item
is produced by different methods, with different ingredients, and in
different proportions each time it is made, costs will be different each
time any given quantity is produced

111
 Standard Portion Cost
 A standard portion cost can be calculated for every item on every
menu, provided that the ingredients, proportions, production methods,
and portion sizes have been standardized as previously discussed. In
general, calculating standard portion cost merely requires that one
determine the cost of each ingredient used to produce a quantity of a
given menu item, add the costs of the individual ingredients to arrive at
a total, and then divide the total by the number of portions produced.

 Standard portion cost is defined as the dollar amount that a standard

portion should cost, given the standards and standard procedures for its
production. The standard portion cost for a given menu item can be
viewed as a budget for the production of one portion of that item. There
are several reasons for determining standard portion costs. The most
obvious is that one should have a reasonably clear idea of the cost of a
menu item before establishing a menu sales price for that item

113
CALCULATING STANDARD PORTION COSTS
 There are several methods for calculating standard portion costs:
1. Formula
For many (perhaps even for a majority) of the menu items prepared in
foodservice establishments, determining standard portion cost can be very
simple. For a large number of items, one may determine portion cost by means
of this formula:

Standard portion cost = Purchase price per unit

Number of portions per unit

For example, consider an establishment serving eggs on the breakfast

menu, with two eggs as the standard portion. One can determine the standard
cost of the portion of the eggs by dividing the cost of a 30 - dozen case of eggs
— say, $ 41.40 — by the number of two - egg portions it contains (180) to find
the standard portion cost of $ 0.23.

Standard portion cost = 41.40 purchase price per case

180 std. portion per case
= $0.23
CALCULATING STANDARD PORTION COSTS
 There are several methods for calculating standard portion costs:
2. Recipe detail and cost card
For menu items produced from standard recipes, it is possible to
determine the standard cost of one portion by using a form known
as a recipe detail and cost card .
CALCULATING STANDARD PORTION COSTS
 There are several methods for calculating standard portion costs:
3. Butcher test
When meat, fish, and poultry are purchased as wholesale cuts, the
purchaser pays the same price for every pound of the item
purchased, even though, after butchering, the resulting parts may
have entirely different values. If, for example, a particular cut of
beef is approximately half fat and half usable meat, the two parts
clearly have different uses and different values, even though they
were purchased at the same price per pound because both were
part of one
wholesale cut. Among other purposes, the butcher test is designed
to establish a rational value for the primary part of the wholesale
piece.
CALCULATING STANDARD PORTION COSTS
 There are several methods for calculating standard portion costs:
4. Cooking loss test
The primary purpose for the cooking loss test is the same as that
for the butcher test: determining standard portion cost. The cooking
loss test is used for those items that cannot be portioned until after
cooking is complete. With these items, one must take into account
the weight loss that occurs during cooking. Therefore, one cannot
determine the quantity remaining to be portioned until cooking is
completed and portion able weight can be determined. Cooking loss
varies with cooking time and temperature, and it must be taken into
account in determining standard portion costs.
 Using the Yield Percentage
 Or yield factor is defined as the percent of a whole purchase unit of
meat, poultry or fish that is available for portioning after any required
in-house processing has been completed.
 Quantity = Number of portions X portion size (as a decimal) /Yield
percentage

Quantity x Yield percentage

Number of portions =
Portion size

Quantity x Yield percentage

Portion size =
Number of portions

Yield percentage = Number of portions x Portion size

Quantity

119
FOOD AND BEVERAGE COST CONTROL

CHAPTER 7
FOOD PRODUCTION CONTROL
II. QUANTITIES
DHM
 PROBLEMS
 Assume that control has been established over individual portions and will
shift our focus to the number of portions produced for each item on a menu
for a given day or meal. After all, if the cost of a portion of some item is
controlled at, say, $ 4.50 per serving, and the establishment produces 100
portions but sells only 40, there will be 60 portions unsold. These may or
may not be salable on another day. Even if they are salable, these portions
are likely to be of lower quality than when they were first produced. It is
also possible that they cannot be sold in their original form, but must be
converted into some other item that will be sold at a lower sales price.
Sometimes, if none of these possibilities are feasible, it may be necessary to
throw the food away. In any case, there is excessive cost — either the cost
of the food or the cost of additional labor that would not have been required
if the establishment had produced 40 portions rather than 100. Such
excessive costs can be reduced or eliminated by applying the four - step
control process to the problem of quantity production.
 Food Production Control II: Quantities
This topic will look into the planning of how many is enough when producing. The
quantity of each production will also need to be control as to help in reducing
excessive cost though wastage if overproduction or customer dissatisfaction if it is
underproduction.
Factor need to be considered are:
1. Maintaining sales history
2. Forecasting portion sales
3. Determining production quantities

122
Maintaining Sales History
 A sales history is a written record of the number of portions of
each menu item sold every time that item appears on the menu. It
is a summary of portion sales.
 the best decisions on the nature of the sales history are based on
the need for information that can be used to improve operations.
Unless the information is useful in leading to better control over
costs, its maintenance cannot be justified.
 the basic information is incorporated into the sales history, it is
necessary to understand the two methods used for recording
customers ’selections: manual and electronic.
Portion sales records
 Regardless of whether the portion sales records are stored
manually or electronically, they are likely to be arranged in one of
three ways:
1. By operating period, such as one week or month, so that all
sales records for an entire operating period can be viewed together
on one page, card or screen.
2. By day of the week , so that all sales records for a given day
(e.g. Tuesday) for a period of several weeks can be compared.
 3. By entrée item, so that the degree of popularity of a given
item can be seen over time.
Popularity Index
 Popularity index is defined as the ratio of portion sales for a given menu item to
total portion sales for all menu items
 The popularity index is calculated by dividing portion sales for a given item by the
total portion sales for all menu items and then multiplying by 100 in order to convert
to a percentage. The index may be calculated for any time period, even for a single
meal. When calculated for a single meal, the index is usually referred to as the sales
mix,
 Popularity index = portion sales X 100
Total portion sales for all menu items

188 X100
1937
 0.09706 and 0.09706 100 9.706%
Other Information in Sales Histories
 Sales histories often include provisions for recording additional
relevant information — internal and external conditions that may
shed light on sales data. One of the most common of these
conditions is the weather. Most foodservice operators find that
weather conditions have a noticeable impact on sales volume.
 Special events can decidedly influence sales and are often included
in sales histories. The occurrence of a national holiday on a
particular day or the presence of a particular convention group in a
hotel can affect sales considerably.
 So can such varied conditions as faulty kitchen equipment, street
construction in front of the restaurant, or a major sale at a nearby
 Forecasting Portion Sales
 Forecasting is a process by means of which managers use
data and intuition to predict what is likely to occur in the
future.
 It is a principal element in cost control as accurate
prediction will make purchasing and production more
accurate.
 Steps in forecasting are:
1. Gather sales volume for particular time (Sales History)
2. External factors affecting the sales
3. Predict anticipated volume
4. Anticipate the sales for each menu item (Popularity Index)
5. Acquire management’s consent.

127
 Determining Production Quantities
 A production sheet is a form on which one lists the names and
quantities of all menu item that are to be prepared for a given date.
 It varies from one establishment to another.
 Usually submitted to the Chef as many days earlier as possible.
 Late adjustment can be made immediately before the forecasted date
or the night before. Usually minor adjustment.

128
 Production Sheet
PRODUCTION SHEET
DAY : Tuesday DATE : 7 Feb 20xx MEAL : Dinner
VOLUME FORECAST: 305

Menu Forecast Adjusted Portion Production Portions Needed Total Left

item forecast size Method on Hand Production Available over

L 75 80 6 oz. Recipe#62 - 80 80 0

M 60 65 8 oz. Recipe#4 5 60 65 5

N 20 20 4 oz. Recipe#19 - 20 20 0

O 150 165 12 oz. Grill 20 145 165 6

Total 305 330

129
 Sale Forecast Vs Actual Sales
DAY : Wednesday DATE : 8 Feb 20XX MEAL : Dinner

Item Sales Forecast Actual Sales Difference

L 80 85 +5
M 65 60 -5
N 20 20 -0-
O 165 159 -6
Total 330 324 -6

The purpose of monitoring quantity production:

1. To determine whether the sales forecast has been reasonably accurate in predicting both the
total number of customers and their individual preferences for particular menu item
2. To judge how closely the chef has followed the production standards established on the
production sheet.

130
 Void Sheet
VOID SHEET
DAY : Tuesday DATE : 7 Feb 20XX
Check # Waiter # Item Reason for Return Authorization Sales value

11031 6 O Too well done SJC 7.95

11034 6 M Dropped on floor SJC 6.95
11206 4 O Too well done SJC 7.95
11227 3 O Too well done SJC 7.95

Void Sheet is to record all the sale that are not being done because of the reasons stated. The
return on each of the item must be authorized by the supervisor or the manager in charge.

131
 Portion Inventory and Reconciliation
 This approach effectively requires that one follow a series of logical steps. First, each menu
item should be listed on the form before kitchen production begins. Next, an inventory is
taken of any portions left over from previous meals that may be used again. Reusing leftovers
in this way is common in some establishments, but unacceptable in others.
 If leftovers are to be used, the number of portions on hand is deducted from the quantity
scheduled for production, and only the difference is prepared. That number is written in the “
Portions Prepared ” column.

132
 Portion Inventory and Reconciliation
PORTION PRODUCTION DAY: Wednesday DATE: 8 Feb 20XX
Item Opening Portion Additional Total Available Closing Portions consumed
Inventory Prepared Preparation Inventory

AB - 180 180 15 165

BH 5 60 65 5 60
CJ - 110 10 120 14 106
DZ 20 145 165 8 157
SALES RECONCILIATION
Item Portion Sold Portion Void Total Consumed Difference Comment
(From Above)

AB 165 - 165 165

BH 58 2 60 60
CJ 103 1 104 106 2 2 missing check
DZ 156 1 157 157
PREPARED BY:_____________________ REVIEWED BY _______________
133
Food Controller Manager