FOOD & BEVERAGE CONTROL NOTES

7/23/2019 FOOD & BEVERAGE CONTROL NOTES

http://slidepdf.com/reader/full/food-beverage-control-notes 1/28

Food & Beverage Control

UNIT-1

Definition of Control

Control is a process by which a manager attempts to direct, regulate and restrain the

action of people in order to achieve the desired goal.

An obvious first step is to established goals for the enterprise. Probably the most common

goal for all private enterprise is financial success, although this is by no means the only-

range goal of business.

Others might relate to preserving the environment, promoting better health among the

population or etc.

To achieve the goals, management must setup any number of sub goal compatible with

its long-range plans. These tend to be more specific and usually more immediate innature.

For example, to achieve the goal of preserving the environment, it would be necessary to

make rather immediate plans to process or dispose of waste materials in appropriate

ways.

Objectives of F & B Control

The food and beverage business can be characterized as one that involves raw materials

purchased, received, stored and issued for the purpose of manufacturing products for sale.

In these aspects many similarities exist between the hospitality industries to achieve thegoal of profitable operation.

This will entail a discussion of how costs and sales are controlled in food and beverage

operations.

The means employed by foodservice managers to directly, regulate and restrain the

actions of people, both directly and indirectly, in order to keep costs within acceptable

bounds, to account for revenues properly, and make profits.

F & B Control Cycle

STEP 1: PURCHASING

Develop purchase specification

Supplier selection

Purchasing correct quantities

No collusion between property and supplier

Evaluation of purchasing process



STEP 2: RECEIVING

Development of receiving procedures

Completion of necessary receiving reports (e.g., addressing financial and securityconcerns)

STEP 3: STORING

Effective use of perpetual & physical inventory systems

Control of product quality

Securing products from theft

Location of products within storage areas

STEP 4: ISSUING

Product rotation concerns

Matching issues (issue & usage)

Purchasing as inventory is depleted

STEP 5: PRE-PREPARATION

Mis-en-place

Minimizing food waste / maximizing nutrient retention

STEP 6: PREPARATION

Use of standardized recipes

Use of portion control

Requirements for food and employee safety

STEP 7: SERVING

Timing of incoming F&B orders

Portion control

Revenue management concerns

STEP 8: SERVICE

Revenue control concerns

Serving alcoholic beverage responsibly

Sanitation and cleanliness

F&B server productivity



PROBLEMS IN F & B CONTROL

-Cash control & collection

-Maintenance of all costs in line with budget guidelines & current volume of business e.g. food, beverage, payroll etc.

-Maintenance of a tight & efficient control of all F & B stocks

-Maintenance of up to date costing & pricing of all menu items.

-Maintenance of an efficient F & B control system giving analyses statistical date of all business

done.

There is a dividing line between those F & B department that manage these problems & hence

function more efficiently & those that just react to the problems only ever treating the symptoms

& not the cause. It is important therefore that potential problem area be identified in advance by

management so that they can be planned for & successfully managed when & if they occur. Thisis only possible if there is some feedback from the control function back to management so that

they are kept constantly aware of, first changes occurring within the F & B area itself, & second

changes occurring outside the establishment that may have an effect.

METHODOLOGY OF F & B CONTROL

The development of an effective system of food and beverage control resolves itself into three

distinctive phases

PHASE-1

Basic policy decisions

Dealing with basic policy decisions. This constitutes of basic policy decisions in relation to

financial and catering policies in the establishment.

Financial Policy

This is where setting of profit targets are done, planning for profit margins for menu or wine list.

Marketing and catering Policy

This deals with the market to be aimed at, the market you are going to cater for in order to satisfy

it e.g. you have to identify the customer, his average spending power, decide what menu will

satisfy the spending power, decide what menu will satisfy the customer, determine the type of

service determine the portion service and choose the appropriate décor or atmosphere.



PHASE-2

Operational Control

Cycle e.g. quantity inspection of incoming good, technological procedures i.e. use of written

store requisition this should be planned so as to cover the cycle of food and beverage

preparation, operational control in relation to the control cycle is.

Buying

Receiving

Storing and issuing

Preparation

Selling

PHASE-3

After Event Control

There must be food and beverage report: For reasons of the specific character of food

and beverage operations food is highly perishable coked form or raw and always

unpredictable trend and unexpected change in order to control a food operation

effectively the manager must have a daily, weekly and other reports covering longer

periods.

Assessment of results: It is concerned with an appreciation of how far the actual results

of food and beverage results correspond with expected results.

Corrective action where appropriate: Any action that is taken following the receipt of

food and beverage report e.g. malpractices on the park of the staffs must be corrected.

PERSONNEL MANAGEMENT IN F & B CONTROL

1. Training: Training is a process by which managers teach employees how work is to be done,

given the standards and standards procedures established.

Example; if management has established a standard 4 - ounce portion size for hamburgers, then

all employees responsible for producing portions of hamburgers must be made aware that 4

ounces is the correct portion size.



2. Setting Example: Employees in an operation follow the examples set by the manager — the

manager’s behavior, manner, responses to questions, and even a failure to speak or take action in

some situations.

The behavior of individuals in a group tends to be influenced by the actions, statements and

attitudes of their leaders.

Work Habits, attitudes, behavior, spirit of a manager are the evident.

If the manager who has occasion to help employees plate food for the dining room serves

incorrect portion sizes, employees will be more likely to do the same when the manager is not

there. Similarly, if a manager is inclined to wrap parcels of food to take home for personal use,

employees will be more likely to do so.

3. Observing and Correcting Employee Actions: One of a manager’s important tasks is toobserve the actions of all employees continually as they go about their daily jobs, judging those

actions in the light of the standards and standard procedures established for their work. If any

employee is failing to follow the standards, it is a manager’s responsibility to correct their

performance to the extent necessary at the appropriate time.



UNIT-2

COST CONCEPT

• Accountants define a cost as a reduction in the value of an asset for the purpose of

securing benefit or gains.

• In F&B Business cost is defined as the expense to a hotel or restaurant of goods or

service when the goods are consumed or the service rendered .

• Food and beverage are “Consumed” when they are used, wastefully or otherwise, and are

no longer available for the purpose which they were acquired.(Units: weight, volume or

total value)

• The cost of labor is incurred when people are on duty, whether or not they are working

and whether they are paid at the end of the shift or at some later date. (Hourly or weekly

or monthly)

• Fixed Cost (FC) and Variable Cost (VC) are used to distinguished between those cost

that have no direct relationship to business and those that do.

• Fixed Cost are those that are normally unaffected by changes in sales volume. Such as =

real estate taxes, insurance premiums, depreciation, repairs and maintenance, rent or

occupancy cost, most utility cost, advertisement, professional services.

• The term fixed should never taken to mean static or unchanging but merely to indicate

that any changes that may occur in such cost are related only indirectly or distantly tochanges in business volume.

• Variable Cost are those that are clearly related to business volume. As business volume

increase, variable cost will increase and vice versa.

• Food & Beverage cost are considered directly variable cost. Direct Variable Cost are

those that are directly linked to volume of business increase and decrease of volume

correspondingly.

• Payroll Cost includes salaries and wages and employee benefits and often referred as

Labor Cost .

• Because labor cost consist of fixed and variable element it is known as semi-variable

cost , meaning a portion should change in short-term and the other portion remains

unchanged.



CONTROLLABLE AND NON-CONTROLLABLE COST

• Controllable cost are those that can be change in the short term such as Direct Variable

Cost, Wages, Advertising & Promotion, Utilities, Repairs & Maintenance and

Administration and General Expenses.

• Non-Controllable cost are those that cannot normally be changed in short-term such as

fixed cost like Rent, Interest on a mortgage, Real estate taxes, License fee and

Depreciation.

Unit Cost may be food & beverage portion as in the cost of one item or hourly unit of work. In

F&B business unit cost are commonly in average unit cost rather than actual unit cost.

Total Cost are the total of food & beverage portions served in one period such as a week or a

month or total cost of labor for one period.

Prime Cost is a term used in the Hotel Industry to refer to the cost of materials and labor. (Food,Beverage and Payroll)

Historical and Planned Costs

• Historical cost are all cost are historical - that is, that they can be found in business

records, book of account, financial statements, invoices, employees’ time card and other

similar records. It is used for establishing unit cost, determining menu prices and

comparing present with past labor cost.

• It will be used for planning and determining the future to develop planned costs -

projections of what cost will be or should be for a future period. It is often called as Budgeting .

Cost percentage may vary considerably from one foodservice operation to other. This is due to

many possible reasons.

Basically there are two types of foodservice operation.

• Those that operate at low profit margin and depends on relatively high business

volume.

• Those that operate at relatively high profit margin thus do not require high business

volume.



SALES CONCEPT

Sales Defined

In general, the term sale is defined as revenue resulting from the exchange for products (Food &

Beverage) and services (Waiter) for value ($$).

The sales concept in F&B operation usually can be express as: monetary and non-monetary.

Total Sales is a term that refers to the total volume of expressed in dollar term for instant any

given period, such as a week, a month or a year.

By Category Total dollar volume of sales by category are total food sales or total

beverage sales. Or total steak sales or seafood sales.

By Server This is total dollar volume of sales for which a given server has been

responsible in a given period. This is to help the management to make judgment on

employee’s performance.

By Seat Usually for a year’s period. Total Dollar sales divided by the number of seats in

the restaurant.

Sales Price refers to the amount charged each customer purchasing one unit of a particular item.

It can be a single meal or entire meal.

Average Sale in business is determined by adding individual sales to determine a total and then

dividing that total by the number of individual sales. Two types of commonly calculated

averages are: average sale per customer and average sale per server.

Per Customer is the result of dividing total dollar sales by the number of sales or

customer.

Per Server is total dollar sales for an individual server divided by number of customer

served by that individual.

COST TO SALES RATIO

Food service establishment calculate cost in rupees and compare those cost to sales in rupees.

This enables them to discuss the relationship between cost and sales or the cost per rupee of sale.

Cost ÷ Sales = Cost per rupee of sale

decimal answer, and any decimal can be converted to a percentage if one multiplies it by 100 and

adds a percent sign (%).

Cost ÷ Sales x 100 = Cost%

INR 312,090 ÷ INR 891,687 = .35 and .35 x 100 = 35.0 %



Food cost ÷ Food sales x 100 = Food cost%

Beverage cost ÷ Beverage sales x 100 = Beverage cost%

Labor cost ÷ Total sales x 100 = Labor cost%

The formula also can be used to determine the Sales price if the cost% is known.

Cost ÷ cost% = Sales (or Sales Price)

If the given cost percentage were 30.0 percent and the food cost for the item were $3.60, the

appropriate sales price would be INR12.00, illustrated here

30.0 % ÷ 100 = 0.3

INR 3.60 ÷ 0.3 = INR 12.00

The formula also can be use to determine the cost if the spending power and cost% is known.

Suppose this banquet manager is dealing with a group willing to spend INR15.00 per person for

a banquet, and the same given 30.0 percent cost percent is to apply. Calculation of the maximum

permissible cost per person is facilitated by rearranging the formula once again:

Sales x Cost % (expressed as a decimal) = Cost

Sales X Cost % = Cost

So the cost per person can be calculated as INR 4.50:

30.0 % ÷ 100 = 0.3

INR 15.00 X 0.3 = INR 4.50

CLASSIFICATION OF COST

There are various types of cost which are:

1. Actual Cost: The actual cost is what a cost or expenses actually was. For example, the payroll

records and check made out to employees will indicate the actual labor cost for that payroll

period.

2. Budgeted Cost: A budgeted cost is what a cost expected to be for a period time. For example,

for an anticipated level of sales for a month, we might budget or forecast what the labor cost

should be for that period. Later, that budgeted cost would be compared with the actual labor cost

in order to determine the causes of any differences.



3. Controllable Cost: A cost that can be changed in the short term. Direct costs are generally

more easily controllable than indirect costs. Variable costs are normally controllable. Certain

fixed costs are controllable, including advertising, promotions, utilities, repairs, etc.

4. Non-Controllable Cost: Are those costs that cannot be changed in the short term. These are

usually fixed costs. These typically include items such rent, depreciation, and taxes.

5. Fixed Cost: Are those that are normally unaffected by changes in sales volume. The term

fixed should never be taken to mean unchanging, merely to indicate that any changes that may

occur in such costs are related only indirectly to changes in sales volume. Examples: Rent,

Utilities, Insurance Premiums.

6. Variable Cost: A variable cost is one that varies on a linear basis with revenue, those that are

clearly related to business volume. Directly variable costs are those that are directly linked to

volume of business, such that every increase or decrease in volume brings a corresponding

increase or decrease in cost. The obvious variable costs are food and beverage. The more foodand beverage sold the more that have to be purchased. If revenue is zero, then the cost should

also be zero. As business volume increases, so do these costs. As business volume decreases, so

do these costs.

7. Direct Cost: Direct cost is a cost that is the responsibility of a particular department or

department manager. Most direct costs will go up or down, to a greater or lesser degree, as

revenue goes up and down. Because of this, they are considered to be controllable by, and thus

the responsibility of, the department to which they are charged. Examples of this type of cost

would be food, beverages, wages, operating supplies and services beverages and linen and

laundry.

8. Indirect Cost: An indirect cost is commonly referred to as an undistributed cost or one that

cannot easily be identified with a particular department or area, and thus cannot be charge to any

specific department. For example, property operation, maintenance and energy cost could only

be charged to various departments (such as linen or food and beverage) with difficulty. Even if

this difficulty could be overcome, it must still be recognized that indirect costs cannot normally

be made the responsibility of an operating department manager. Indirect costs are also sometimes

referred to as overhead cost.

9. Joint Cost: Is a cost shared by and the responsibility of two or more department or area. The

cost of dining room waiter who serves both food and beverage is an example. His labor is a joint

cost and should be charged to the food department and to the beverage department. Most indirect

costs are also joint costs.

10. Sunk Cost: A cost that has been incurred and cannot be reversed. Also referred to as a

"stranded cost”. A worn-out piece of equipment bought several years ago is a sunk cost because

the cost of buying it cannot be reversed.



11. Opportunity Cost: The cost of not doing something or the profit lost. An organization can

invest its surplus cash in marketable securities at 10 percent, or leave the money in the bank at 6

percent. If it buys marketable securities, its opportunity cost is 6 percent. Another way to look at

it is to say that it is making 10 percent on the investment, less the opportunity cost of 6 percent;

therefore the net gain is 4 percent.

12. Standard Cost: A standard cost is what the cost should be for a given volume or level of

revenue. For example, a standard cost can be develop by costing the recipe for a given menu

item. If ten of these menu items are sold, the total standard cost should be ten item the individual

recipe cost. Another illustration would be personnel cost (wages) for cleaning at dining area. If

the area attendant is paid Rs. 4.00 an hour, and it takes one half hour to clean the area, the

standard labor cost for cleaning the area would be Rs. 2.00. While, if the service person take 7

hours to clean the area, total standard cost would be Rs. 28.

13. Prime Costs: Is a term used in the food and beverage industry to refer to the cost of

materials and labor.

Prime Cost = Food Cost + Beverage Cost + Labor Cost

14. Historical Costs and Planned Costs:

Historical costs are figures that have already happened and can be found in the business records.

Planned costs is made by using historical costs in the present to determine what is likely to

happen in a future period to come. These numbers are also used in budgeting.

COST/VOLUME/PROFIT RELATIONSHIPThe key to understand cost/volume/profit relationship lies in understanding that fixed costs exist

in an operation regardless of sale volume and that it is necessary to generate sufficient total

volume to cover both fixed and variable costs as well as desired profit.

It should be apparent that relationships exist between and among sales, cost of sales, cost of

labor, cost of overhead and profit. In fact these relationships can be expressed as follows:

Sales = Cost of sales + Cost of labor + cost of overhead + profit.

The relationship formula

Because cost of sale is variable, cost of labor includes fixed and variable elements and cost of

overhead is fixed, one should restate this equation as follows:

S = VC + FC + P



In fact this is the basic equation of cost/volume/profit analysis

S = Sales

VC = Variable Cost

FC = Fixed Cost

P = Profit.

BREAK EVEN POINT

No business can be termed profitable until all of the fixed cost have been met.

• If sales cannot cover both variable cost & fixed cost it is operating at a loss

• If sales can cover both variable cost & fixed cost exactly but insufficient to provide any

profit.

(i.e, profit = 0) the business is said to be operating at the breakeven point (BE)

Changing the Break Even Point

Two ways to change Break Even point is by

1. Increasing menu price

2. Reducing Variable cost



UNIT-3

A budget is a quantitative expression of a plan for a defined period of time. It may include

planned sales volumes and revenues, resource quantities, costs and expenses, assets, liabilities

and cash flows. It expresses strategic plans of business units, organizations, activities or events in

measurable terms.

BUDGETING

• Budgeting is part of the planning process. It can involve decisions concerning day-to-day

management of an operation or, on the other hand, involve plans for as far ahead five

years.

• Budgeting is used by most firms to aid in controlling costs and to ensure that costs are

kept in line with forecast revenues.

• In order to make meaningful decisions about the future, a manager must look ahead. One

way to look ahead is to prepare budgets or forecasts.• A forecast may be very simple. For a restaurant owner/ operator, a budget may be no

more than looking ahead to tomorrow, estimating how many customers will eat in the

restaurant, and purchasing food and supplies to accommodate this need.

• On the other hand, in a larger organization, a budget may entail forecasts up to five years

ahead (such as for furniture and equipment purchases) as well as day to day budgets

(such as staff scheduling).

• Budgets are not always expressed in monetary terms. They could involve numbers of

customers to be served, number of rooms to be occupied, number of employees required

or some other unit rather than money.

OBJECTIVES

1. To provide organized estimates of future revenues and expenses, manpower requirements or

equipment needs with estimate broken down by time period and / or department.

2. To provide a coordinated management policy both short and long term, expressed primarily in

accounting terms.

3. To provide a method of control by comparing actual results with budgeted plans, and to take

corrective action if necessary.



TYPES OF BUDGET

Capital Budget: It deals with assets and capital funds of a business.

Operating Budget: Deals with the income and expenditure of a business.

Master Budget: It in co-operates all the income and expenditure plus the assets and liabilities of

a business.

Departmental Budget: It is done in respect to the single department of business e.g. special

functions like banqueting, wedding receptions, the sales and purchases have to be budgeted for.

Fixed Budget: This is a budget which is independent on the level of turnover e.g. advertising

office administration, maintenance budget; this is because short-run changes in the volume of

turnover have no effect on the budget concerned.

Flexible Budget: Budget which provides for several level of turn-over and pre-determines costor cash flow accordingly, for example changes in the rate of room occupancy may affect labor

cost in a small hotel.

ADVANTAGES OF BUDGETING

• They involve participation of employees in the planning process, thus improving

motivation and communication.

• They necessitate, in budget preparation, consideration of alternative courses of action.

• They allow a goal, a standard of performance, to be established with subsequent

comparison of actual result with that standard.

• Flexible budgets permit quick adaptation to unforeseen, changed conditions.

• They require those involved to be forward looking, rather than to be looking only at past

events.

DISADVANTAGES OF BUDGETING

• Time constraints

• Unpredictable future

• Confidential matters

• Spending to budget problem



BUDGETARY CONTROL PROCESS

BUDGETING FOR FOOD & BEVERAGE OPERATIONS

1. SALES BUDGET: The purpose of the sales budget is to pre-determine the volume of sales in

respect to a trading period; this enables an assessment of the sales performance in a business at

the end of that period.

IMPORTANCE OF SALES BUDGET:

1. It has an influence on the volume of sales on profit.

2. It influences the preparation of other budgets.

3. Budgeted volume of sales will influence.

- Budget food & beverage cost

- Labour cost

- Overhead cost



4. Budgeted volume of sales will depend on

- Past performance

- Current trends

- Any limiting factor which may be in operation with this budget.

DEVELOPMENT OF SALES BUDGET

Factors to be considered:

For each revenue produced department special

Circumstances affecting each department.

Complete analysis of the previous years, actual sales figure for each department.

Analyses of the sales mix percentages.

A careful study of probable future trends and purchases.

Any significance change in the sales milk must be analyzed to see what effect will have

on the purchase budget.

Any changed in the use of food stuffs e.g. pre-packed commodities or convenience foods

must be noted and studied for effect on the cost of purchases.

Any change in supplies.

2. BUDGETED PROFIT & LOSS ACCOUNT

• This is to pre-determine in the respect to a particular trading period all the income and

expenditure of a business as well as the net profit to be carried. E.g. departmental gross

profit, labor cost percentage, overheads percentage and net profit percentage.

3. LABOUR COST BUDGET

• Labour cost budget are budgeted for in relation to the budgeted volume of sales, the

higher the volume of sales the higher the total cost of labour.

• A given increase in the volume of sales must not necessarily result in a proportionate

increase in labour cost. When sales arising many components of the total cost of labour

remain fixed e.g. management and supervisory salary. Labour costs are fixed and others

tend to vary in the same direction as the volume of sales.



FACTORS CONSIDERED IN PREPARATION OF LABOUR COST BUDGET

The number and grade of each staff in each department.

The budgeted rate of paying for each grade of staff.

Casual and part time labourers.

Cost of national health insurance.

All accommodation, holidays with pay, bonuses and commission.



UNIT-4

FOOD & PURCHASING CONTROL

Responsibility for Purchasing

The responsibility of purchasing can be delegate to anyone 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

Perishable and Non-perishable

Perishable are those items, typically fresh foods, those have a comparatively short useful life

after they have been received. They should be purchased for immediate use only as they

deteriorate quickly.

Non-perishable are those food items that have a longer shelf life. They are often referred to as

groceries or staple. They may be stored in the containers in which they are received, stored onshelf at room temperature for weeks or months. They do not deteriorate quickly.

Developing Standards & Standard Procedure

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 developed for:

1. The quality of food purchased

2. The quantity of food purchased

3. The price at which food is purchased



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 thosespecific 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.

Through Standard Purchasing Specification:

1. To determine exact requirement in advance for any products

2. To purchase 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.

Establishing Quantity Standards

•

Quantity standard for purchasing are subjected to continual review and revision, often ona 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.

• 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

A method for ordering food or beverages based on fixed order dates and variable orderquantities. 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

2. Perpetual inventory 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 of14 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

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



FOOD RECEIVING CONTROL

The primary objective of receiving control is to verify that quantities, qualities and price of food

delivered conform to orders placed.

The person that is 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

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.

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 individual before a check is

drawn.

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

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. Practice for doing this varies from one establishment to other

establishment due to the management policies and procedures and priority.

(2) The record keeping associated with determining the cost of the food issued.

DIRECT: Direct is in-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.

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.

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 andthat the quantity listed for each is accurate. If the list of items and quantities is correct, the chef

signs and thus approves the requisition.

FOOD PRODUCTION CONTROL

1. 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 anumber 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

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 helps 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 helps 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.

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 doi

likely to receive items of

Standard recipes are also

cannot be controlled effe

different ingredients, anddifferent each time any g

STANDARD PORTION COS

A standard portion cost c

ingredients, proportions,

previously discussed. In

one determine the cost o

item, add the costs of the

total by the number of po

Standard portion cost is

given the standards and s

for a given menu item ca

item. There are several re

is that one should have a

establishing a menu sales

STANDARD YIELD

Yield factor is defined asthat is available for porti

completed.

Quantity = Number of po

ng the work. In addition, returning customers

identical quality.

very important to food control. Without standa

tively. If a menu item is produced by different

in different proportions each time it is made, cven quantity is produced.

an be calculated for every item on every menu,

production methods, and portion sizes have bee

eneral, calculating standard portion cost merel

each ingredient used to produce a quantity of a

individual ingredients to arrive at a total, and t

rtions produced.

efined as the dollar amount that a standard port

andard procedures for its production. The stan

be viewed as a budget for the production of o

asons for determining standard portion costs. T

reasonably clear idea of the cost of a menu ite

price for that item.

the percent of a whole purchase unit of meat, pning after any required in-house processing has

rtions X portion size (as a decimal) /Yield perc

ill be more

d recipes, costs

methods, with

sts will be

rovided that the

standardized as

requires that

given menu

en divide the

on should cost,

ard portion cost

e portion of that

e most obvious

before

oultry or fish been

entage



UNIT-5

BEVERAGE PRODUCTION CONTROL

• To ensure that all drinks are prepared accordingly to management’s specifications

• To guard against excessive costs that can develop in the production process

Establishing Standards and Standard procedures for production

Standard must be established for the:

Quantity of the ingredients used

Proportion of the ingredients used

Drink sizes

To have some reasonable assurance that a drink will meet expectations each time it is

ordered.

If drinks are served accordingly to the formula and in standard portion, then the cost for

each portion to sales should be the same.

Establishing Quantity Standard and Standard Procedures

Devices for Measuring Standard Quantities

Four measuring devices are commonly used by bartenders:

Shot Glasses (Plain and lined)

Jiggers (Double ended stainless steel Measuring device that resembles the shot

glass)

The pourer (Fitted on top of a bottle)

The automated Dispenser (predetermined measures of liquor)

Free pour from own judgment or eyesight

Establishing Quality Standards and Standard Procedures

Standard Recipes

Establishing Standard Portion Cost

Straight Drinks (formula)



Mixed Drinks and Cocktails (Detail Recipe)

Controlling Revenue

Possible control of problems

Working with the cash drawer open

Under-ringing sales

Overcharging customer

Undercharging customer

Over pouring

Under pouring

Diluting bottle contents

Bringing one’s own bottle into the bar

Charging for drinks not served

Drinking on the job

Beverage Sales Monitoring

The Cost Approach

Cost Percentage Methods

Monthly Calculation

Daily Cost Calculation

Cost Calculation by Category

Standard Cost Method (Actual – Standard Cost)

The Liquid Measure Approach

Ounce-Control Method (Quantity stock taking daily)

The Sales Value Approach

Actual Sales Record (Recipe Detail Comparison)

Average Sales Value Method (Per-bottle value)



Standard Deviation Method (Statistical EDP)

Inventory Turnover

Monitoring Production Performance and Taking Corrective Action

A manager can personally observe bar operations on a regular basis

A designated employee, such as a head bartender, can observe others working at the bar

and report unacceptable performance and problems to management

Individual unknown to the bartenders can be hired to patronize the bar, observe the

employees, not problems and report to management

Closed-circuit television systems can be installed to permit observation of bartenders and

bar operations from some remote location.

FOOD & BEVERAGE CONTROL NOTES

Documents