KITCHEN MANAGEMENT BLOCK A - PC-1

Gilbert Noussitou 2010 L2-1

KITCHEN MANAGEMENTBLOCK A - PC-1


Incoming Inventory Inventory Control

Inventory control is important in controlling food costs

Standards & procedures for Receiving & Storing Inventory must be developed for efficiency

The cost of food is one of the two highest costsOften in the thousands of dollars


Incoming Inventory Inventory Control

• Inventory “notebook” (manual system) – time consuming– loads of paperwork– hard to keep up-to-date therefore often not accurate

• Daily inventory reports:– Separated in two broad categories:

• stores (storage)• directs (used the same day)

– further separated into a number of categories: example: meat, seafood, produce dairy, etc

– purchases are then compared with sales of items in same category: meat, seafood, produce, etc.


Outgoing Inventory Inventory Control

• Requisitions:

– keep track of transfers form storage to production

– If used, they must be precise and consistent

– Like computers, only as good as the information you enter

• Pricing requisitions:

– A good tool to track cost of food used

– Must be precise

Food is money, you must know where it goes!!


Inventory Record Keeping Inventory Control

• Perpetual inventory:– Like a bank account: food in = food out– Expensive to maintain (labour intense)– Sometimes used only for expensive items: (the 80/20 rule)

• Physical Inventory:– Taken periodically– Sometimes used to verify perpetual inventory– Opening inventory vs. closing inventory


The 80/20 Rule80% of consequences stem from 20% of the causes

20% 80%

Food Usage Food Cost

=

Control those 20%!!!


• Computerized Inventory Control– Can be time consuming– If set up properly and used properly, these

systems can supply very good and detailed info (best price paid, price comparison between suppliers, advance demand forecast, constant inventory, waste (or pilferage) control, etc.

Inventory Record KeepingInventory Control


• The last price paid: – simple, most common

• The F.I.F.O. method: – very accurate if stock is rotated properly.

Each item is costed at the real price paid.

• The average price method: – labor intense– rarely used

Pricing InventoryInventory Control


1. Calculate average inventory:Opening inventory + closing inventory = Average inventory

2

2. Calculate cost of food:Opening inventory + Purchases – Closing inventory = Cost

3. Calculate turnover rate:Cost of food

Average inventory

Inventory TurnoverInventory Control

•Inventory is money; money must be working!•No hard rules: usually two or three times/month

= Turnover Rate


Basic Restaurant Costs

WT up-FR FR

Food costs (cost of sales) 30% 26% 35%

Staff costs (labour) 34% 30% 20%

Operating Expenses (cost of doing bus) 16% 19% 23%

Occupancy costs (rent, insurance, etc.) 8% 10% 12%

Amortization 4% 4% 4%

Profit 8% 11% 6%

SALES (always) 100% 100% 100%


Basic Restaurant Costs

• Fixed Costs: not related to sales– Non-controllable

• Variable costs: directly related to sales– Controllable

– Most staff costs & food costs

• Semi variable: not an official category– Management, salaried employees, contracts etc.


Breakeven Point

Food costs + labour costs + overhead = SALES

No profits = survival but working for nothing

Profit = Sales – (F.C. + L.C. + Overhead)


Cost Percentage

• Should be fairly constant• Understand the difference between the:

– Standard food cost– Actual food cost

(food, labour or others)

Cost% = cost

salesx 100 or portion

wholex 100


Breakeven Analysis

Breakeven point80,000

40,000

20,000

60,000

loss

profit

20,000 40,000 60,000 80,000 100,000

fixed costtotal cost

sales

variable cost

sales

cost

s


Breakeven PointExample

Fixed costs $ 24,000

Variable cost $ 60,000

Sales $100,000

1-

$24,000 $60,000

$100,000

Breakeven point =


Interpreting Cost Percentages

• Allow for comparison with:– Other operations

– Different periods

– Budget guidelines

• Rule of Thumb:

F.C% + L.C. = max 80%


Using Cost Percentages

Calculate the cost of food from sale price

= cost factor (f)100 (whole)

% (ptn)

Calculate the menu price (sale price)

Food cost = sale price

cost factor

cost

cost %= S.P. or 100

%= S.P.Cost x

Food cost = sale price x food cost %


Sales Ratios & Other Statistics

• Dollar sales• Number of customers during a given period• Seat turnover (busy or slow)• Number of items sold• Identify items that are not moving• Dollar sale per cover (average check)• Dollar sale per seat• Dollar sale per wait staff (effectiveness)• Number of customers per wait staff (or staff period)• Dollar sale per cook (effectiveness of menu)

(scheduling etc)


Sales Ratios & Other Statisticsfor Menu Analysis

• In menu analysis the most common statistic is the number of times each item is sold within a given period:

• Similar to that is the menu mix or sales mix • It is expressed in % and referred to as item popularity• Item popularity is the number of sales of each item

compare to the total of items sold

# of items sold

total items soldX 100 = menu mix % or sale mix %

Very important information to measure profitability of each item!! (Most statistics are obtained from P.O.S.)


Yield & Cost Calculations

1. Standard Product Specifications

2. Standard Recipes

3. Standard Yields:– Ratio of useable product to total weight before processing

4. Standard Portions– Count – ladle – scoop – bowl – weigh – etc.

5. Standard Portion Cost– Resulting from standard recipes and standard portions!!!!

There are five main standards related to cost control



• are an accurate reflection of desired results based on market expectations

• encouraging excellence• are reasonable & challenging• are specific & measurable• allow slight flexibility to encourage creativity

& challenge• include feed back (in control system)

Effective Standards:


Control Point Flow Chart

Menu Planning

Purchasing

Receiving

Storing

Issuing

Preparing

Cooking

Holding

Serving

☺ Guest Satisfaction & Profit Target☺

Control the processe

s,

not the end result!!

!



Edible Portion (EP)As Purchased (AP)

x 100Yield % =

Edible Portion Size = AP Portion Size

Yield %

100 (whole) (AP)

% (ptn) (EP)Yield Factor =

or Edible Portion Size = AP Portion Size x Factor

Yield percentage or yield factor is the ratio of useable product (EP) to the total weight (AP) before processing



Edible Portion Cost = AP (Raw) Portion Cost

Cost %

100 (whole) (AP)

% (ptn) (EP)Cost Factor =

or

100

%Edible Portion Cost = AP (Raw) Portion Cost x

Edible Portion Cost = AP (Raw) Portion Cost x Cost Factor

Edible Unit Cost = AP (Raw) Unit Cost x Cost Factor


Yield Test

• Peeling, trimming, boning etc. must be consistent

• High temperatures during cooking significantly increase shrinkage

Everything you buy must be sold sold!!

Edible Portion can be raw or cooked


Meat Cutting Yield Test

Portion Size Factor: 0.27

factorPortion

Size cost

EPtotal value

value / kg

yield %

weightbreakdown

1.81 0.27150g $5.74$38.25

$0.68

$2.44$49.73

$0.800

$9.75-----

34%4%

10%52%

850g100g250g

1300g

Fat / gristleWasteTrimmingsEdible meat

100%2,500g250g

TOTALPtn Size

Cost

kg ptncost/kg%

Total Cost: $52.85

Date: ___________Grade: AAA

Unit Cost: $21.14

Pieces: One

Weigh: 2.5 kg

Item: Beef Tenderloin


Quantity cooked: One Time: 2 hours and 30 minutes Temperature: 175C

Breakdown Weight Ratio toTotal Weight

ValuePer Kg

TotalValue

Cost ofUsable

kg

Portion Size Cost

Cost FactorPer

Kg Portion

Original WeightTrimmed WeightLoss in TrimmingCooked WeightLoss in CookingBones and TrimSalable Weight

3750 g2850 g

900 g2350 g

500 g750 g

1600 g

100%76.0%

24%62.67%13.33%

20.0%43.0%

$4.75 $17.81$17.81

0$17.81

00

$17.81 $11.13 125 g $1.39 2.3432 0.2926

Item: Leg of Lamb Portion: 125 g Portion Cost Factor: 0.2926

Cooking Loss Test


MenuPlanning



Menu Planning

“You don’t build it

for yourself, you

know what the people

want and you build it for

them”


Menu Planning

• By definition, a menu is a list of the dishes that will constitute a meal.– It can be a list of all the dishes that will

compose a meal of which it is the program.– It can be a list of all items available for sale

regardless of their purpose or contents• Its harmony and progression should bring the

guest maximum pleasure and satisfaction


Menu Planning

• A menu is like the business card of the restaurant

• The menu is the heart of the business• Everything else depends on the menu• The purpose of the Menu is to:

– identify for the consumer the food and beverages the operation offers

– create customer enthusiasm– increase sales


Types of Menus

• Static Menu– Patrons are offered the same foods each day

• Cycle Menu– Developed for a specific period of time

• Market Menu– Based upon product availability during a specific

period or season

• Hybrid Menu– A blend of static with a cycle or a market menu


Menu Formats

• Static menus: – standardized, stocks are constant– systems are set & organized, almost perfect– can be boring

• Cycle menus: – practical but can be monotonous

• À la Carte: – individually priced items

• Table d’Hôte or “Prix Fixe”: – offers a complete meal at a set price

• Other menus:– hybrid menus, market menus, semi “á la carte”


Menu Planning: Considerations

• Know your customer• The type of restaurant & its classification• The season and/or climate• Know local products/markets/cuisine/trends• The budget and food cost guidelines • The potential number of guests• The facilities available• …….and your wishes if at all possible


Menu Planning: Choosing the Dishes

• Go from the Lightest to the most nutritious and finish with the finest

• Contrast: alternate white and red meats, white & brown sauces, lean & fat fish, soft and firm textures etc…..

• Respect the basics of nutrition: major groups of food, balance of macronutrients etc.

• Avoid repetitions: names, garnishes, cooking methods etc.

• Select products that people will recognize and enjoy

• Avoid mistakes due to personal tastes


Menu Planning: Choosing the Dishes

• The menu should be nutritionally and gastronomically balanced

Balance!

!


Menu Planning: Writing Menus

• Know the proper meaning and spelling of culinary terms

• Use simple words and meaningful expressions that guests will know and understand

• Customers don't know anything about your food;

explain clearly and briefly what the dish is all about • Include information such as: the cut, the size sometimes,

the cooking method, the sauce, important ingredients & accompaniments, & perhaps the garnish.



• The menu should be comfortable, pleasant to the eye and to the touch (nice paper & other materials)

• Language is a major consideration; easy to read language and font, print size and colour are all important

• Grammar and spelling must be respected

• Use a logical order and reading pattern

• Consider location of profitable items, specials etc.



• The menu is a SELLING TOOL; it will convince the guest to either buy that item or not; come back another day or not

• It can also misinform the guest, which can result in:– an unhappy customer

– a waste of food

– a waste of time

– in all cases, a waste of money


Menu Planning:Use of Leftovers

• Normal waste is costed and sold

• Abnormal waste is used but not sold

• Proper planning is essential

What is the best way to use leftovers?

THE BEST WAY TO USE LEFT-OVERS IS……

NOT TO HAVE ANY!


Applying Purchasing Procedures


Purchasing Procedures

• Buy only if needed: ensures quality & controls stock size!!• Establish and respect par stock• Buy from reputable places (or be ready!) Know your

suppliers and work with them• Rule of thumb: check a minimum of 3 sources • Be clear on delivery needs: date, time, place, other rules• Know your requirements & product specifications: grades,

sizes, origins, fresh, frozen etc…• Be ready to accept (or not to) accept a substitute• Have a system


Selecting the right supplier

• Supplier’s location (short delivery times).• Supplier’s facilities (efficiency, quality, reliability).• Financial stability (long term relationship and support).• Technical ability and knowledge of staff.• Reasonable price (not necessarily the best) in relation to

quality.• Compatible attitudes (working relationship and trust are

important).• Honesty and fairness (good business practices).• Reciprocal purchasing (potential customer).


Calculate Food Requirements

• Establish portion sizes of main ingredients• Establish the number of portions required• Calculate the amount of food required• Identify quantity of food on hand• Calculate the amount to purchase


FOOD ITEM MENU ITEM PORTION SIZE

Shrimp Shrimp cocktail 80 grams (2.82 oz)

Lemon Shrimp cocktail 1 wedge (6/lemon)

Cocktail sauce Shrimp cocktail 60ml (2.11 oz)

Head lettuce Tossed salad ¼ head

Tomato Tossed salad ½ each

Dressing Tossed salad 60 ml (2.11 oz)

P. Rib raw trim rdy Prime rib 500 grams (17.6 oz)

Potato Baked potato 1 each

Green beans Green beans 80 grams (2.82 oz)

Carrots Carrots 80 grams (2.82 oz)

Strawberries Fresh strawb. 100 grams (3.52 oz)

Portion Control Chart

Calculate Food Requirements


Item Amount Supplier

Needed On Hand

Order A & B Co. Green Prod. Local Supplier

1 2 3 4 5 6 7

Spinach 6 c/s 2 5 cs 4 c/s 2200/cs = 88.00 1485/cs = 59.4 2170/cs = 86.80

Ice.Lettuce 8 c/s 1 cs 7 c/s 1700/cs = 119.0 1675/cs = 117.25 1810/cs = 126.70

Carrots 3-20 # 20 # 2-20# 1470/bg = 29.4 1390/cs = 27.80 1380/bag = 27.60

Cabbage 2 sacks ½ sc 2 sc 1860/sc = 37.2 1800/sc = 36.00 1810/sack = 36.20

Totals 861.40 799.25 842.16

Ordering Chart

KITCHEN MANAGEMENT BLOCK A - PC-1

Documents

gilbert noussitou 2010l2

causes gilbert noussitou

constant inventory

storing inventory

rulephysical inventory

opening inventory purchases

turnover rategilbert

cost of food usedmust