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Purchasing Cost Control And Menu Management Pdf

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Forty Thieves of Food Cost

Chefs are managers and must be able to control food costs in the kitchen. But controlling costs is everyone's responsibility and the chef must convey this message to their culinary team from the cooks to the dishwashers. Food cost is tied to properly training your crew so that they can be efficient, control portion sizes, and reduce food waste. Here are a few more ways to control costs.

The two ways foodservice establishments use to determine food costs are:. Theoretical Menu Plate Cost — Individual portion cost for each menu item.

Overall Food Cost Percentage — Based on the monthly cost of food as compared to sales. Calculate the cost of each menu item and include all components of the plate. Plate cost includes production trim and waste, meat or vegetable trimmings for example. Some plate costs use multiple preparations, such as the truffle demi-glace in this recipe, that requires the preparation of a brown stock and a brown sauce before the small sauce is made.

Other recipes, like the potato pave, will have trim from peeling and cutting the potatoes, plus waste from portioning them. All of these factors must be considered before a true plate cost can be determined. Photo by Loija Nguyen on Unsplash. A Q factor is the cost of anything extra that is required in the production and service of the menu item.

These include complimentary items like bread, butter, and even salt and pepper. Complimentary Items such as bread, butter, salt, pepper and other condiments must be factored into a food cost. Waste from over production, spoilage or improper cooking re-fires, burned, etc. Once a plate cost is established for a menu item the selling price can be set. To determine the menu price use the following formulas. Foodservice operations will set a theoretical budget with sales goals and projected targets of spending for food, labor, and overhead.

The projected budget is an estimate based on sales history and forecasting trends for both sales and expenses of the operation.

Setting a budget helps to focus the goals of the operation so that the manager and chef can make adjustments as needed to maintain financial stability. This is determined by doing a physical inventory and comparing it to actual sales. This method requires accuracy in recording the inventory in a consistent way. The mark of a well-managed operation is how close the theoretical and actual budgets come together.

Lobster can gross more raw dollars than less expensive items on the menu like soups or salads. Some menu items are higher profit and lower cost than others. The goal in writing a menu is to have a balanced mix of menu items to achieve a consistent overall food cost that is in line with the monthly operating costs.

Lobster tails may have a high food cost percentage, but will bring in more raw dollars than the soup. In fact, analyzing raw dollar revenue will reveal that certain items, although high in food cost, can yield more income for the establishment.

While soup, salads, and chicken show a lower than average food cost, steak and lobster are higher. Lobster brings in more raw dollars per item and higher profit margin than soup. If more lobster is sold it will bring in more revenue than the equal number of chicken or steak. Income statements show how much money was earned from the sale of food and beverages, and how much money was spent on goods, services, and overhead.

They are usually completed on a monthly basis and compared from month-to-month to determine if sales and costs are as projected. Because raw dollar costs are hard to compare from one period to the next, a cost-sales ratio is commonly used and displayed as a percentage of sales.

Analyzing the cost ratios, the operator can easily target problem areas. These areas can be investigated and changes can be made to maximize profits. The foodservice business operates on very thin profit margins.

The food cost is not the sole cost of running a food business. Here is an example of the food cost and sales price of a pizza. Kitchen Organization — Establish a standardized system for ordering, receiving, storing, and production. Employee Training — Train everyone to follow the system by adopting standardized recipes and procedures that control portions, use trim and leftovers efficiently, rand educe spoilage and waste.

Standardized Recipes and Procedures —This is done so that there is consistency in production and food costs. Menu Costing — By calculating a per portion plate cost for each menu item, a realistic selling price can be set. Portion Control — One of the easiest ways to control food cost is to establish standardized portion sizes, and to train employees so they know and use them.

Production Forecasting — By using sales history to determine production you can reduce food waste and overproduction. Establish a prep sheet with par levels for all food items to help your staff in planning production. Overproduction — This results from lack of proper forecasting based on a sales history which increases waste not just in food but also in labor costs. Improper cooking and re-fires — Proper staff training will reduce waste occurring from improperly prepared food.

Using leftovers and Trim — Re-purposing trim or the overproduction of food for other preparations is a trick that will help to reduce waste and increase profit margins. Ordering — Improper ordering of food leads to spoilage and ties up money in excess inventory. Inventory — A regular inventory is important in determining if costs are in line with the budget. A physical inventory is usually done once a month, but may be done weekly, or even daily, if food costs are out of control.

Theft - Dishonest employees always find a way to steal, so tracking inventory and securing expensive food items will help reduce costs. Waste - Properly trained employeeswaste less and are more conscientious; periodically check to see what gets thrown out.

Purchasing Analysis — Having an alternate vendor for your food and beverages allows you to do comparison shopping to keep purchasing costs in line. Site Map. Calculating Food Cost. How to Calculate Food Cost The two ways foodservice establishments use to determine food costs are: Theoretical Menu Plate Cost — Individual portion cost for each menu item Overall Food Cost Percentage — Based on the monthly cost of food as compared to sales Calculating Theoretical Plate Cost Calculate the cost of each menu item and include all components of the plate.

View fullsize. Q Factor A Q factor is the cost of anything extra that is required in the production and service of the menu item. Q Factor Itemization. Actual Food Cost This is determined by doing a physical inventory and comparing it to actual sales.

Actual Food Cost Formula. Menu Mix, Menu Pricing, and Margins. Foodservice Income Statements Income statements show how much money was earned from the sale of food and beverages, and how much money was spent on goods, services, and overhead. Cost to Sales Ratio Because raw dollar costs are hard to compare from one period to the next, a cost-sales ratio is commonly used and displayed as a percentage of sales. Food Cost in Perspective.

Ways to Control Food Costs Kitchen Organization — Establish a standardized system for ordering, receiving, storing, and production Employee Training — Train everyone to follow the system by adopting standardized recipes and procedures that control portions, use trim and leftovers efficiently, rand educe spoilage and waste Standardized Recipes and Procedures —This is done so that there is consistency in production and food costs Menu Costing — By calculating a per portion plate cost for each menu item, a realistic selling price can be set Portion Control — One of the easiest ways to control food cost is to establish standardized portion sizes, and to train employees so they know and use them Production Forecasting — By using sales history to determine production you can reduce food waste and overproduction.

Establish a prep sheet with par levels for all food items to help your staff in planning production Overproduction — This results from lack of proper forecasting based on a sales history which increases waste not just in food but also in labor costs Improper cooking and re-fires — Proper staff training will reduce waste occurring from improperly prepared food Using leftovers and Trim — Re-purposing trim or the overproduction of food for other preparations is a trick that will help to reduce waste and increase profit margins Ordering — Improper ordering of food leads to spoilage and ties up money in excess inventory Inventory — A regular inventory is important in determining if costs are in line with the budget.

Forty Thieves of Food Cost

Obviously we have to consider our costs, since we are in business to make money or at least meet our budget or breakeven in the case of some onsite segments. We have to consider our customers. What do they consider a good value? We know the restaurant business is not just about the food, but also the service, the experience, the ambiance. The location also affects what customers are willing to pay. Think about the difference in the price of just a bottle of water in a restaurant, a vending machine, or a sporting venue! Prices in the airport are usually higher even for the exact same food from a chain restaurant.

The key to a successful restaurant, as anyone could probably tell you is good food, excellent service, and a great location. These factors contribute to high sales numbers. However, restaurants operate on tight margins. The sale of your restaurants must be enough to cover all your other expenses, plus generate you a decent profit. Thus arises a need for Food and Beverage Control in restaurants.

ManageFirst: Controlling Foodservice Costs w/ Online Exam Voucher, 2nd Edition

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Food cost management is essential for the professional chef to be successful. If your food cost looks good then you are in great shape, but if your food cost is bad you could be in a heap of trouble. If you have read the 40 Thieves of Food Cost then you know that solving the problem can be very complicated as there are a host of things to evaluate in order to determine the source of the problem.

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Forty Thieves of Food Cost

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A Beginner’s Guide to Food and Beverage Control in Restaurants

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Chefs are managers and must be able to control food costs in the kitchen. But controlling costs is everyone's responsibility and the chef must convey this message to their culinary team from the cooks to the dishwashers. Food cost is tied to properly training your crew so that they can be efficient, control portion sizes, and reduce food waste. Here are a few more ways to control costs. The two ways foodservice establishments use to determine food costs are:. Theoretical Menu Plate Cost — Individual portion cost for each menu item. Overall Food Cost Percentage — Based on the monthly cost of food as compared to sales.

Food and Beverage Cost Control

4 Comments

Elliot B. 07.06.2021 at 14:27

provides an in-depth insight into the operating budget, menu management, menu pricing, purchasing and supplier selection, labour cost-control, and the.

Raymedata1968 08.06.2021 at 20:33

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