The Purpose of Food and Beverage Cost Control

THE use of goods and services OF FOOD AND BEVERAGE COST CONTROL 1. The principal purpose of forage and beverage grooming and control systems is to avoid excessive woo by reducing waste and other forms of expiration to a minimum, without sacrificing the quality or quantity of the feed which goes to the customer. 2. An penetrate control procedure will practice other purposes as well aid in developing pop menus aid in improving the quality of the product aid in pricing for profit The Flow of Costs Through the Various sustenance and Beverage Activities 1. primary direct(a) activities Purchasing Receiving Storing Issuing Pre- readying (butchering, vegetable cleaning etc. ) Portioning Preparation (cooking, baking, salad and sandwich making, etc. ) Service Accounting and sales Study Highlights1 ? food and Beverage costs in the majority of eatery operations represent the largest single expenditure of the revenue. ? Food and beverage costs atomic number 18 influenc ed by the way the various activities such as purchasing, receiving, storing, issuing, pre-preparation, preparation and accounting be performed. Food and beverage control procedures should serve as effective tools of management to aid in the control of costs. They should be designed in such a way that the most effective apportioning of time is made to the planning, comparing and corrective action phases of control, with the emphasis on planning. ? F&038B control systems must be effectively employ by management before they can be a worthy aid in the control of costs. ? F&038B control systems are supported by various types of cadences effected by management e. g. , standard barter for specifications, standard portion sizes, standard recipes, etc. F&038B control systems should be simple and flexible. ? Management is responsible for cost control, and should declare use of every tool and technique at its disposal in order to keep costs in line with what they should be. ? In large , colonial F&038B operations, management is given cost control service in the form of staff specialists such as a food and beverage control office. ? In small F&038B operations, the film director and his operating staff must alone maintain the prerequisite planning and control procedures as part of their day-to-day responsibilities. Four Basic Operating Procedures 1.Food Purchasing, Receiving, Storing and Issuing The primary objective of each of the basic operating procedures should be kept in mind during this study Purchasing to grasp the best quality of sell based on established specifications, at the best possible price. Receiving to obtain the quality and quantity of merchandise logical and at the quoted price. Storing to maintain adequate stocks of merchandise on hand, and to avoid loss through theft or spoilage. Issuing to insure proper self-confidence for the merchandise to be released and to properly account for each days issue. . Standard Purchase Specification A purchase specification is a concise description of the quality, size, and weight or count factors desired for a particular item Management establishes standard purchase specifications based upon a thorough study of the menu needs and their merchandising and pricing policies The purchasing agent, the purveyors of the participation, and the companys receiving clerk should each have a even up of the established specifications ? Purchasing 1. There are 3 basic requisites for effective purchasing a. a qualified and honest purchaser . a sound set of standard purchase specifications c. effective buying methods and procedures. 2. Standard purchase specifications are concise descriptions of the quality, size, and weight or count factors desired for a particular item. 3. Copies of the purchase specifications should be in the hands of a. the purchasing agent, b. the companys purveyors c. the companys receiving clerk. 4. Constant follow-up and evaluation procedures are necessary in orde r to insure the continuous adherence to established policies and procedures. ? Receiving 1.The personnel responsible for receiving should know all aspects of the merchandise they are called upon to guess and receive. 2. Food merchandise should be checked from the viewpoint of quality, quantity, specification, and price. 3. All merchandise accepted should be supported by an invoice, and the details of the invoice summarized on a daily receiving sheet. 4. Constant follow-up and evaluation checks are necessary to insure proper performance of the receiving procedures. 1. Definition of Terms 1. Cost of Food Consumed 2. Cost of Food Sold 3. Month-end Actual Cost of Food Consumed 4. unremarkable Actual Food Cost 5. Standard Food Cost 2. Basic Formula for Calculating Actual Food Costs Opening pedigree + purchases = cost of merchandise available Merchandise available closing lineage = cost of food consumed Food consumed + or charges or credits = cost of food sold The Closing In ventory of the Current month becomes the scuttle inventory of the following month. Care and accuracy should be the rule in determining inventory value pic Paper prepared by Murage Macharia Lecturer, Mombasa expert Training Institute P. O. BOX 81220 Mombasa 80100 Mobile +254 726 604 340 +254 750 604340