Food and Beverage Control

Objectives of F&B reassure * Analysis of income and expenditure surgical operation can be expressed in raw profit, net margin (gross wages) and net profit (net margin rent, rates, insurance) * Establishment and maintenance of ideals. SOP (standard operational procedures) * Pricing * Prevention of waste * Prevention of deceit * Management information Problems of F&B control * Perishability of food * Business volume unpredictability/ gross revenue instability Menu mix unpredictability * F&B operation short speech rhythm - little time for many control tasks * departmentalization several production and service departments - separate trading results Fundamentals of control Planning phase Policies pre-determined guidelines * Financial policy level of profitability, subsidy and appeal limits from distributively department * Marketing policy target group * National identicalness * Customer profile Market share same or more percentage of our market * Turnover sales volume incr eased by x% on previous year * Profitability 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 gamy standard * Customer satisfaction net result must be the satisfaction of every customer * Catering policy main objectives of F&B facilities and describe the methods of how this is achieved * character reference of customer * Type of add-in * Beverage provision necessary for operation Food quality standards * Method of buying (contract, cash) * Type and quality of service * Degree of comfort and decor * Hours of operation Operational phase * Purchasing * Product testing (tasting) * Yield testing * Purchase specifications terse description of quality, size, weight etc. * Method of buying * Clerical procedures (who places orders, what documentation necessary for control) * Receiving * Quantity inspection * Quality inspection * Clerical procedures (acknowledgement of the rece ipt, delivery signature) * Storing and issue * Stock records Pricing of concomitants * Stocktaking (how much stress to be held, rate of stock turnover etc. ) * Clerical procedures (what documentation in necessary) * Selling * Checking dodge (number of pointednesss sold) * Control of cash * Clerical procedures Post operation phase * F&B cost reporting (daily or weekly) * Assessment compare reports with budgets and with previous performance * Correction if necessary Reality of control never 100% efficient Setting the budget and break-even analysis * Budget plan which reflects policies and determines the business concern perations for a grouchy trading period * Budgetary control control with particular accountability for budget results is assigned to managers and continuous comparison amongst the actual results and the budgeted figures is do * Objectives of budgetary control * To provide a plan of action, to keep business with its policies and to maximize the full use of r esources * To set standards of performance * To set out levels of cost responsibility and to encourage cost awareness * Capital budgets assets, equipment etc. * Operating budgets day-to-day income and includes sales, cost of sales, labour, maintenance etc.Stages of budgeting 1. Determination of net profit, capital invested and risks involved 2. Preparation of sales budget volume of sales necessary to achieve desired net profit. Also influences budgeted cost for food, labour etc. 3. Preparation of administration and general budgets (office expenses, ad etc. ) 4. Preparation of capital expenditure budget (new equipment, furniture) 5. Preparation of cash budget (cash inflows/outflows, cash chemical equilibrium) 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 of staff meals * Labour costs = wages and salaries * operating cost costs = all other costs Four kinds of costs * Fixed always the same * Semi-fixed depends on volume of sales scarcely not in same proportion (fuel, telephone costs) * Variable in proportion to volume of sales * Total sum of above Profit * Gross profit bring sales cost of materials * After-wage profit/net margin total sales material labour * Net profit total sales total costs (material, labour, overhead cost) Break-even analysis * Based on Selling price, 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 price * V = variable cost Software systems * Menu provision (popularity and profitability) * Production control (quantities) * Stock management (maintain stock levels) * Purchase ordering (order automatically when minimum stock) * Menu analysis (individual customer scorecard choices recorded) * All of these systems in concert EPOS system Basic concepts * Planning, standard yields, recipes, portion sizes - PYRS * Production planning (or volume forecasting) Goal cost control, purchasing, reduce waste, production on demand, comparison between actual and strength volume of sales * Standard yields * Is the usable part of that product later on initial preparation, or the edible part of the product after preparation and cooking * Goal know how much to buy, safeguard against wastage measurement of efficiency of production, ideal food costing * Standard recipe * Goal accurate costing, fundamental to know nutritional value, useful in kitchen * Standard portion size * Aid to food costing Methods of food control Control cycle * Purchase order * Delivery note Invoice (usually send directly to accounts department) * Requisition Weekly/monthly food cost report * For teentsy 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 * Detailed * Corrective action can be take n early in the month * Accuracy is important * Ignores staff meals, food that goes to/from bar - not accurate Calculation of potential food costs 1. Multiply number 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 * Number 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, establishment of standard yields, recipes, portion sizes and inventory * Par stock or bottle control system Beginning stock * Number of empty bottles to be counted and requisitioned for the day * voltage sale s based on quantities issues and compared to actual revenue received * Adjustments made to selling price if necessary * Potential sales value system * gross value of each bottle based on standard size of discombobulate, contents of bottle and selling price for each drink * Full bottles of pot likker 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 * gross sales by meal period to know when to hire more staff or for marketing * Sales by server to identify members of staff who need further training * Category report * Table waiting measure Profit sensitivity analysis (PSA) * Identifying the critical or light upon factors of a business and how they influence the net profit * Method of PSA 1. Identify key factors (number of covers, F&B costs, labour costs) 2. Assume a lurch in one key factor at a time 3.Calculate resulting change in net profit 4. Calculate profit multipliers PM = % of change in net profit / % of change in key factor 5. incline the PMs in order of size 6. Analyze results Menu engineering * Evaluation of menu with regard to its present and future content, design and set * Highlight the good 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 automated * Sales checks each item ordered and the selling price to be recorded in check 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 * foe data * Market trends * Weather forecast * Methods of forecasting software * Non-linear regression used when time is the independent variable * Multiple regression analysis * bring down analysis * Adaptive filtering Operating ratios * Total F&B sales * Recorded 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 roll and total sales * Sales mix food-beverages, appe tizers-coffees-mains * Payroll costs % of sales higher if more service * Index of productivity sales/payroll * Stock turnover * Rate 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 arse 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?