Practical Food and Beverage Cost Control

by Clement Ojugo

• ISBN13: 9780766800380
• ISBN10: 0766800385
• Edition: 1st
• Format: Hardcover
• Copyright: 1998-10-19
• Publisher: Delmar Publishers Inc

Summary

This book provides a complete, comprehensive overview of the food and beverage industry's cost control methods and how they are applied within profitable, successful food-service establishments. It presents useful and important guidelines for assessing, interpreting and planning food and beverage operations, as well as financial information that will help owners, operators and managers minimize expenditures and improve profits. Unique coverage of issues such as "make or buy" decisions, inventory control, forecasting, departmental interaction, how to view markets and customers, and more, give this book a richness and relevance that can truly impact the bottom line.

Table of Contents

Foreword	xv
Preface	xvii
Introduction	xxiii
An Overview of the Industry and the Manager
Learning Objectives	1	(1)
Chapter Overview	1	(1)
Highlights of the Hospitality Industry	1	(3)
The Role of the Food and Beverage Manager	4	(3)
Food and Beverage Expenses	7	(1)
The Cost Controller Job Description	7	(3)
The Cost-Effective Initiatives	10	(21)
References	31	(1)
Summary	31	(1)
Discussion Questions	31	(2)
Planning for Sales
Learning Objectives	33	(1)
Chapter Overview	33	(1)
Introduction	33	(1)
Menu Design	34	(3)
Menu Pricing	37	(2)
Methods of Menu Pricing	39	(3)
Maximizing Sales By Adopting Menu Engineering Techniques	42	(12)
Restaurant Minimum Standards	54	(3)
References	57	(1)
Summary	57	(1)
Discussion Questions	57	(2)
The Purchasing Department
Learning Objectives	59	(1)
Chapter Overview	59	(1)
The Goals of Purchasing	60	(5)
Purchase Specifications	65	(26)
Standing Order Contracts	91	(1)
Product Testing: Yield Tests	92	(6)
Vendor Selection	98	(3)
Auditing Purchasing Controls	101	(1)
Receiving Controls	102	(4)
Storeroom Functions	106	(1)
The Issuing Functions	106	(1)
Storeroom Procedures	107	(4)
Meat Tag System	111	(1)
Summary	112	(1)
Discussion Questions	113	(2)
Planning for Food Profit and Controls
Learning Objectives	115	(1)
Chapter Overview	115	(1)
Introduction to Food Profitability	116	(1)
Targeted Ideal Cost	116	(3)
Potential Costing	119	(12)
Actual Food Cost	131	(5)
Controlling Entree Items	136	(4)
Controlling Waste	140	(3)
Summary	143	(1)
Discussion Questions	143	(2)
Monthly Physical Inventory and Monthly Food Cost Calculations
Learning Objectives	145	(1)
Chapter Overview	145	(1)
Inventory of Food and Beverage Items	145	(8)
Monthly Food Cost Calculation and Controls	153	(5)
Net Results of Food Cost Calculation	158	(1)
Accruals	159	(1)
Inventory Turnover Ratio	160	(2)
Interpreting Inventory Results	162	(1)
Dead Stock	163	(1)
Summary	164	(1)
Discussion Questions	164	(3)
Beverage Profitability and Controls
Learning Objectives	167	(1)
Chapter Overview	167	(1)
Introduction to Beverages	167	(1)
Beverage Basics	168	(4)
The History of Beverages	172	(8)
Designing Your Pricing Strategies	180	(2)
Beverage Purchases	182	(6)
Receiving	188	(1)
Storage	189	(1)
Proper Beverage Requisition Procedures	190	(1)
Beverage Control	191	(5)
Other Beverage Controls	196	(5)
Beverage Cost Variance	201	(5)
Service Procedures	206	(5)
References	211	(1)
Summary	211	(1)
Discussion Questions	212	(3)
Guest Check and Cash Handling Controls
Learning Objectives	215	(1)
Chapter Overview	215	(1)
Introduction	215	(2)
Receiving the Checks from the Supplier	217	(1)
Issuing Checks to the Outlets	217	(2)
Cover Reporting	219	(5)
Cash Handling Controls	224	(2)
Responsibilities of Cash Handlers	226	(6)
Negligence	232	(1)
Summary	233	(1)
Discussion Questions	234	(3)
Staff Planning
Learning Objectives	237	(1)
Chapter Overview	237	(1)
Introduction	237	(3)
Productivity Standards	240	(5)
Other Labor Costs	245	(1)
Scheduling and Labor Forecasting	246	(2)
Staff Planning in the Budgeting Process	248	(3)
Productivity Reporting	251	(5)
Full Time Equivalent (FTE) Reporting	256	(3)
Summary	259	(1)
Discussion Questions	260	(3)
Analyzing Cost-Volume-Profit (CVP) Relationships and Marginal Contribution Break-even (MCB)
Learning Objectives	263	(1)
Chapter Overview	263	(1)
Introduction to Cost-Volume-Profit Relationships (CVP)	263	(5)
Calculating VC by the Least Squares Approach	268	(2)
Marginal Contribution Break-even Point (MCB)	270	(5)
The Advantages and Disadvantages of Break-even Analysis	275	(1)
Summary	275	(1)
Discussion Questions	276	(3)
Data Base Information and Computer Systems
Learning Objectives	279	(1)
Chapter Overview	279	(1)
Buying or Upgrading of Purchasing Systems	279	(1)
Contract and Lease Agreements	280	(1)
Data Base Maintenance and Security Access	280	(1)
Computer Contingency Plan	281	(5)
Summary	286	(1)
Discussion Questions	287	(2)
Glossary	289	(8)
Appendix	297	(100)
Index	397