Food and Beverage Control

Objectives of F&B curtail * Analysis of income and expenditure doing can be expressed in gross lettuce, net circumference (gross wages) and net profit (net margin rent, rates, insurance) * Establishment and maintenance of trites. standard procedure (standard operational procedures) * Pricing * Prevention of waste * Prevention of fraud * commission training Problems of F&B control * Perishability of food * Business pile unpredictability/gross taxation instability Menu unify unpredictability * F&B operation short rung - little succession for some control tasks * departmentalization several mathematical production and service departments - separate trading results rudiments of control Planning phase Policies pre-determined guidelines * Financial policy level of profitability, premium and address limits from each department * grocery storeing policy target pigeonholing * National identity * node profile Market share aforementioned(prenominal) or more percenta ge of our market * Turnover gross revenue tawdriness increased by x% on previous year * gainfulness profit increased by each unit by x% on previous year * ASP (average spending power) increased by x% or to achieve a new ASP of no less than x * Product same high standard * Customer satisfaction net result must be the satisfaction of every(prenominal) client * Catering policy main objectives of F&B facilities and nominate the methods of how this is achieved * cause of customer * Type of menu * Beverage provision essential for operation Food quality standards * Method of buying (contract, cash) * Type and quality of service * Degree of comfort and decor * Hours of operation operating(a) phase * Purchasing * Product testing (tasting) * Yield testing * leveraging specifications concise description of quality, size, weight etc. * Method of buying * clerical procedures (who places orders, what bread and solelyter necessary for control) * Receiving * Quantity inspection * Qu ality inspection * clerical procedures (acknowledgement of the receipt, delivery signature) * Storing and issuing * Stock records Pricing of items * Stocktaking (how frequently inception to be held, rate of rootage turnover etc. ) * Clerical procedures (what documentation in necessary) * Selling * Checking system ( enactment of items sold) * Control of cash * Clerical procedures send out operation phase * F&B cost inform (daily or weekly) * Assessment compare reports with work outs and with previous performance * Correction if necessary world of control never 100% efficient Setting the budget and break-even compend * Budget plan which reflects policies and determines the business perations for a particular trading level * Budgetary control control with particular debt instrument for budget results is charge to managers and continuous comparison between the actual results and the budgeted figures is made * Objectives of budgetary control * To provide a plan of action, t o keep business with its policies and to maximize the full-of-the-moon use of resources * To set standards of performance * To set out levels of cost responsibility and to encourage cost awareness * Capital budgets assets, equipment etc. * Operating budgets casual income and includes gross sales, cost of sales, labour, maintenance etc.Stages of budgeting 1. Determination of net profit, capital invested and risks involved 2. expression of sales budget script of sales necessary to achieve desired net profit. Also influences budgeted cost for food, labour etc. 3. Preparation of government activity and general budgets (office expenses, advertising etc. ) 4. Preparation of capital expenditure budget (new equipment, furniture) 5. Preparation of cash budget (cash inf lowlys/outflows, cash balance) 6. Preparation of master budgets (trading account, profit loss account and balance sheet) Costs, profits and sales Material cost = opening stock + cost of purchases closing stock cost o f cater meals * Labour be = wages and salaries * Overhead cost = all new(prenominal) costs Four kinds of costs * Fixed always the same * Semi-fixed depends on volume of sales but not in same property (fuel, telephone costs) * Variable in proportion to volume of sales * full(a) sum of above Profit * Gross profit constitutional sales cost of cloths * After-wage profit/net margin tot sales material labour * Net profit total sales total costs (material, labour, overhead cost) Break-even compendium * Based on Selling toll, product mix and unit costs remain the same * Only one product is made/sold * Break-even = C/(S-V) * C = total fixed costs * S = sales legal injury * V = variable cost packet systems * Menu planning (popularity and profitability) * Production control (quantities) * Stock management (maintain stock levels) * Purchase ordering (order automatically when minimum stock) * Menu analysis (individual customer menu choices recorded) * All of these systems together epic poem system Basic concepts * Planning, standard yields, recipes, portion sizes - PYRS * Production planning (or volume forecasting) Goal cost control, purchasing, disgrace waste, production on demand, comparison between actual and strength volume of sales * Standard yields * Is the usable part of that product after initial preparation, or the edible part of the product after preparation and readying * Goal know how much to buy, safeguard against wastage measurement of efficiency of production, faultless food costing * Standard recipe * Goal accurate costing, alpha to know nutritional appreciate, useful in kitchen * Standard portion size * Aid to food costing Methods of food control Control cycle * Purchase order * Delivery note Invoice (usually send straight off to accounts department) * Requisition Weekly/monthly food cost report * For nonaged business * Simple and quick to make * No intermediate information (only after 7 or 28 days) Daily food cost report * For small to medium-sized business * Simple and easy to follow * circumstantial * Corrective action can be taken early in the month * Accuracy is important * Ignores faculty meals, food that goes to/from bar - not accurate Calculation of potential food costs 1. Multiply effect of each menu item during a sample week by potential food cost per portion - total potential food cost of a week 2.Same with sold portions and menu prices - potential total sales 3. Divide total potential food cost by total potential sales - potential food cost percentage * Necessary information for above calculation * itemize of items sold and their selling prices * Standard recipe cards of all menu items * Summary of potential food cost obtained from recipe cards * Average market price for main ingredients Methods of beverage control * Six basic types control of purchasing, receiving, storing and issuing, planning, origination of standard yields, recipes, portion sizes and inventory * Par stock or nur sing bottle control system Beginning stock * Number of empty bottles to be counted and requisitioned for the day * Potential sales base on quantities issues and compared to actual revenue received * Adjustments made to selling price if necessary * Potential sales evaluate system * Revenue value of each bottle based on standard size of drink, contents of bottle and selling price for each drink * Full bottles of spirits potential sales value is the same as selling price * Spirits sold by glass number of drinks x price per drink = potential sales value * Millimeter system * Most accurate EPOS reporting Menu item preference to identify potential menu items that arent doing well and eliminate them from the menu * Menu item profitability * sales by meal period to know when to hire more rung or for marketing * gross sales by server to identify members of staff who need further training * Category report * Table waiting times Profit sensitivity analysis (prostate specific antigen) * Identifying the critical or primeval factors of a business and how they influence the net profit * Method of PSA 1. Identify call factors (number of covers, F&B costs, labour costs) 2. take for granted a qualify in one differentiate factor at a time 3. answer for resulting change in net profit 4. Calculate profit multipliers PM = % of change in net profit / % of change in key factor 5. List the PMs in order of size 6. Analyze results Menu engineering * Evaluation of menu with regard to its present and future content, design and pricing * Highlight the considerably and poor performers on a menu * Customer demand number of customers served * Menu mix customer preference for menu item * contribution margin (GP% gross profit %) of each menu item (how much earned from item) * Stars popular menu items and high GP% * Plowhorses popular but low GP% Puzzles low popularity but high GP% * Dogs low popularity and low GP% Systems of revenue control * Manual or change * Sales str ike offs each item ordered and the selling price to be recorded in larn pads * Cashiers role check and record the check pads in a check number issue sheet and check pricing of all checks and add taxes Computerized items * Pre-checking systems waiter has own machine key * Pre-set pre-checking system each item on menu has its own key on machine * Electronic cash registers (ECR) EPOS is better so now only for small operations * MPOS handheld/mobile EPOS systemForecasting * How many customers and what will they eat at what time * We need * Sales and turndown history * Cancellations and no show trends * Competitor data * Market trends * Weather forecast * Methods of forecasting software * Non-linear regression use when time is the independent variable * Multiple regression analysis * Trend analysis * Adaptive filtering Operating ratios * Total F&B sales * preserve and checked against budgeted sales figure * Done daily for large businesses * Departmental profit * Expenses = costs of F&B labour * Profit = % of departmental sales Ratio of separate F&B sales to total sales * ASP number of items recorded on till pass on and total sales * Sales mix food-beverages, appetizers-coffees-mains * Payroll costs % of sales higher if more service * Index of productivity sales/payroll * Stock turnover * identify of stock turnover = cost of F&B consumed / average stock value at cost * Number of items that average level of stock has turned over in a given period * Sales per seat available sales value that can be earned by each seat * Rate of seat turnover number of times that each seat is used * Sales per waiter * Sales per m?