Food and Beverage Cost Control

Learning Outcomes of the Course Unit

1) Surveys of operations in various phases of the service industries show that savings of as much as 5 percent of revenue can be obtained by reducing excess food and beverage costs. So after studying this chapter the student looks at the F&B business in just a moment and knows what is going on in the field commercial food and beverage service operations. So he/she is aware of the importance of an effective development of food and beverage control and its philosophy(advance planning and predetermined costs, pre-cost, pre-control system).
2) He/she can discuss ways in which kinds of financial information may be used in controlling costs and overall operations in F&B department.
3) He/she explains types of stores recording, and stock levels, deliveries and requisitions. The student knows adequate control records to account for all items coming in, going out and being retained in store. Additionally, he/she can balance storage stocks and consumption.
4) Menu planning is one of the most complex of marketing exercises undertaken in catering, and like the planning of all products should be designed according to certain criteria. After studying this chapter the student understands satisfaction of market need, compliance with the total meal experience, the menu must not be too extensive, the menu should enable the target gross profit to be achieved, the menu should not encourage waste, the menu should be balanced, the menu should be exciting, the menu must be within the culinary range of the kitchen staff.He/she knows potential sales and planning the menu-menu marketing, menu price, market trends, factors to be taken into account in menu marketing, price, gross profit,
5) He/she understands food buying specifications, ordering and deliveries foods, preparation, service, calculating standard prices, receiving office(back door), analysis of purchases, restaurant checks, dishes served, staff meals at standard cost.
6) He/she explains the elements of the beverage control system: beverage buying specifications, ordering and deliveries beverages, requisitions, preparation, service, calculating standard prices, receiving office(back door), analysis of purchases, bar consumption sheets, restaurant and bar checks,
7) He/she knows cost-volume-profit analysis(CVP), limits of cost-volume-profit analysis, cost-volume-profit graph and the sales-mix problem.
8) The student takes a mid-term examination and pass it successfully.
9) The student knows control of payroll costs, payroll control system, payroll forecasting, personal turnover reporting at the F&B department.
10) He/she understands budgeting (profit planning), the benefits associated with profit planning, the profit planning process.
11) He/she knows breakeven analysis and graphs changing costs and wages against rising sales and to consider the effect on profit.
12) He/she understands reports which analyzed the increases or decreases in cost by component parts (sales growth analysis, relevant range and cost-volume-profit analysis).
13) He/she knows the tools of analytical analysis-ratio analysis and relevant formulas effectively.
14) With the ever increasing sophistication of business techniques have come many new quantitative methods. Such techniques as linear programming, simulation, and sensitivity analysis are in common usage with larger companies. After studying this chapter the student has a general idea about these techniques.
15) He/she reads mass media about economy, trade, hospitality industry, commercial F&B business and analyse them.