DEFINITIONS
COST CONCEPTS IN FOOD AND BEVERAGE
1.1 Objectives
Define the various expenses generated by the F&B department
Differentiate the fixed costs from the variable and semivariable costs, and the controllable expenses from the non controllable ones
1.2 Definitions
1.2.1 The costs
They combine all the different expenses incurred by an establishment as a result of selling an item or offering a service to guests.
1.2.2 The variable costs
Expenses directly linked to the business volume.
1.2.3 The fixed costs
Expenses which are normally unaffected by changes in sales volume.
1.2.4 The semivariable costs (semifixed)
Expenses which have both fixed and variable elements.
1.2.5 The controllable costs
Expenses which can be changed in the short term and which are usually under the direct responsibility of the F&B Manager.
1.2.6 The non-controllable costs
Expenses that Management cannot change in the short term and which usually do not fall under the responsibility of the F&B Manager.
1.2.7 The prime cost
The sum of food cost, beverage cost and labour cost for a given operating period. It is expressed in % of the total revenue.
1.2.8 The contribution margin
The amount resulting from the subtraction of variable costs from the total income and which is available to cover the fixed costs and make a profit. Expressed in % of the income, it is called contribution rate.
1.3 Exercises
Item Restaurant I % Restaurant II %
Total income 1'292’260.- 100 575’500.- 100
Food cost 468'990.- 36.29 180'142.- 31.30
Beverage cost 123'210.- 9.53 31'108.- 5.43
Salaries, fixed 430'400.- 33.30 180'300.- 31-32
Salaries, variable 96'000.- 7.42 47'200.- 8.20
Other fixed costs 133'600.- 10.33 77'000.- 13.37
Other variable costs 40'060.- 3.14 59'750.- 10.38
Fill in the two % columns.
Calculate for both restaurants, using the appropriate figures:
the gross profit $823’270 FROM REST. 1 $395’358 FROM REST. 2
the gross profit % 63.70% FROM REST. 1 68.69% FROM REST. 2
the total variable costs $592’200 FROM REST. 1 $211’250 FROM REST. 2
the total fixed costs $660’000 FROM REST. 1 $304’500 FROM REST. 2
the prime cost $1’118’600 FROM REST. 1 $438’750 FROM REST. 2
the contribution margin
the contribution rate 43.83% FROM REST. 1 49.91% FROM REST. 2
THE GROSS PROFIT: CALCULATED AS SALES MINUS ALL COSTS DIRECTLY RELATED TO THOSE SALES. THESE COSTS CAN INCLUDE MANUFACTURING EXPENSES, RAW MATERIALS, LABOR, SELLING, MARKETING AND OTHER EXPENSES.
THE TOTAL VARIABLE COSTS: A COST OF LABOR, MATERIAL OR OVERHEAD THAT CHANGES ACCORDING TO THE CHANGE IN THE VOLUME OF PRODUCTION UNITS. COMBINED WITH FIXED COSTS, VARIABLE COSTS MAKE UP THE TOTAL COST OF PRODUCTION. WHILE THE TOTAL VARIABLE COST CHANGES WITH INCREASED PRODUCTION, THE TOTAL FIXED COSTS STAYS THE SAME.
TOTAL FIXES COSTS: A COST THAT DOES NOT VARY DEPENDING ON PRODUCTION OR SALES LEVELS, SUCH AS RENT, PROPERTY TAX, INSURANCE, OR INTEREST EXPENSE
THE PRIME COST: TOTAL OF DIRECT MATERIAL COSTS, DIRECT LABOR COSTS, AND DIRECT EXPENSES.
THE CONTRIBUTION MARGIN: FORMULA: PRICE PER UNIT - COST PER UNIT - VARIABLE OPERATING EXPENSES PER UNIT
1.4 Questions:
When comparing the results of both restaurants, what comments can you make?
Over which expenses should the F&B Manager’s attention be particularly drawn?
On which expenses should the F&B Controller concentrate?
2. STANDARDS ESTABLISHED TO DETERMINE THE NEEDS
2.1 Objectives
Define standards to decide on the quantity and qualities of merchandise
Rule or measure established to make comparisons and judgements. Any standard can be changed if justified.
2.2.1 Quality standard
Used to define the degree of excellence of a product and, by extension, the ordered.
2.2 Standard
production of it.
2.2.1.1 Purchase specifications form
Document established to describe quality standards and particularities of a product.
2.2.2. Quantity standard
Quantity measure of a product expressed in weight, volume or count.
2.2.2.1 Minimum stock
Minimum stock of a given item below which there is a risk of stock outage; the remaining stock no longer covering the daily needs until the next delivery.
2.2.2.2 Maximum stock
Highest inventory level of a given item ensuring its constant availability but above which it is not economically justified to go.
2.2.2.3 Par stock
Ideal quantity of a given item which should be available in stock each time the most recent order has been delivered.
2.2.2.4 Reorder point
Stock level of a given item which, when reached, alerts the purchasing agent to reorder.
2.2.3 Price standards
Identified cost of a product, approved by the management, which is used to compare the expected price of merchandise with the one offered by the supplier.
2.3 Exercises
2.3.1 Purchase specifications form
Fill in the attached purchase specifications form for the given item, referring to local suppliers and according to its intended use (at your discretion)
Purchase specifications form
_______________________________________________
Name of the establishment
1. Product name :________________________________________
2. Product used for :______________________________________
_____________________________________________________________
_____________________________________________________________
3. General description of the product :________________________
____________________________________________________________
____________________________________________________________
4. Detailed description:
Item Nº : Variety :
Geographical origin: Type :
Quality : Wrapping:
Delivery unit : Unit size :
Brand: Gross weight :
% of alc. by vol. : Net weight :
5. Test procedure :________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
6. Special instructions and needs:____________________________________________
__________________________________________________________________
2.3.2 Minimum stock
1. A Pizzeria is open 7 days a week and uses 140 cans of peeled tomatoes per week. Knowing that the delivery time is 10 days, calculate the minimum stock of this item.
2. Knowing that the monthly consumption of Aigle « Les Murailles » is 130 bottles, what is the minimum stock if this wine is delivered only once a year at the same period ?
3. Knowing that the weekly consumption of potato crisps in portion bags is 105, calculate the minimum stock if the delivery takes place on the 5th of every month.
2.3.3 Maximum stock
When placing the order for Aigle “Les Murailles”, the supplier suggests the following special conditions:
15% discount on the normal purchase price for any order larger than 200 cases if the payment is made within 30 days after delivery.
Normal purchase price is € 9.63 per bottle.
Do you decide to take advantage of this special offer?
Explain your answer:
2.3.4 Reorder point
Daily needs: 10 kg.
Quantity in stock this morning, before issuing : 6 sacks of 25 kg
Reorder point: 90 kg.
2. In how many days are you going to make the order?
NEEDS DETERMINATION AND PURCHASING
3.1 Objectives
Define the quantity of perishable and non perishable goods to be purchased
Select the supplier(s) who meet(s) the establishment criteria (quality, quantity and price standards)
Place the order following the appropriate procedures
Complete the different documents required
3.2 Determination of quantity when ordering non perishable goods
3.2.1 Periodic order method
A variable quantity of goods is ordered on a fixed date.
3.2.2 Perpetual inventory method
A fixed quantity of goods is ordered on a varying date.
3.3 Determination of quantity when ordering perishable goods
The stock of these merchandise is kept to the minimum because of their short usable life. The order is placed taking only into consideration their immediate need and the time for delivery.
3.3.1 The market list
List of perishable goods used to determine the quantity to order, to write price information given by different suppliers and to place the order with the most competitive supplier.
HOTEL CONTINENTAL MONTREUX
MARKET LIST (extract) SUPPLIERS
Item Needs In stock To order 1 2 3 4
Poultry
Canette de Bresse
Caneton Bresse Barbarie
Caille française
Pintade de Bresse
Poulet prép.
Poussin portion
Pigeon de Bresse
Poitrine d'oie fumée
Foie gras de canard cru
Foie gras bloc
Foie gras d'oie cru
Magret de canard
Magret de canard fumé
Dinde prép.
Suprême de poulet
3.4 Other ordering documents
3.4.1 Purchase request
Document completed by the requesting sector each time a non perishable food item needs to be ordered
3.4.2 Purchase order
Document completed by the Purchasing manager or the Purchasing agent when ordering.
3.4.3 Purchase record
Written proof filled in by the purchasing manager or purchasing agent each time an order is placed orally.
HOTEL CALIFORNIA LAUSANNE Nº: 1234
PURCHASE RECORD Supplier:................................................................
Date of order:........................................................
Ordered by:...........................................................
Item Quantity Unit Unit price Total price Bill Nº Comments
3.4.4 Standing order
Agreement between an establishment and a supplier for an automatic delivery of a given quantity of an item, on a regular basis. The supplier could also pass by on a regular basis and restock certain items to an agreed level.
3.5 Exercises
3.5.1 Periodic order
1. Data
Item: Coffee beans, pack of 1 kg.
Delivery unit: box of 5 packs
Daily need: 10 kg.
Time for next delivery: 14 days
Day of ordering: each 1st. and 15th. of the month
Today: Monday, 15th. of June
On hand today: 170 kg.
Par stock: 180 kg.
2. Data
Item: Lager beer “Cardinal”, 33-cl. bottles
Delivery unit: 24-bottle case
Daily need: 300 bottles.
Time for next delivery: 3 days (delivery on Monday and Thursday
only)
Today: Saturday morning
On hand this morning: 44 cases
Par stock: 60 cases
3. Data
Item: Vegetable cocktail, 3/1 can
Delivery unit: 6-can box
Daily need: 8 cans
Today: 1st. of June
Ordering date: On the 5th. of each month
Delivery: On the 28th. of each month
Par stock: 300 cans
On hand today: 236 cans
3.5.2 Perpetual inventory
In a perpetual inventory ordering system, specify the day of the next order and the quantity to order.
1. Data
Item : Deep-frozen French fries, box @ 5 kg
Daily needs : 42 boxes
Time for next delivery : 4 days
Today : Monday
Reorder point : 200 boxes
On hand this morning : 276 boxes
Par stock : 320 boxes
2. Data
Item : Milk, UHT, 1 litre pack
Delivery unit : Box @ 12 packs
Daily needs : 67 litres
Time for next delivery : 18 days
Today : Wednesday
Reorder point : 120 Boxes
On hand this morning : 1'842 litres
Par stock : 240 boxes
3. Data
Item : Norwegian smoked salmon, side @ about 1.400 kg vacuum packed
Daily needs : ½ side
Time for next delivery : 10 days
Today : Saturday
Reorder point : 7 sides
On hand this morning : 9 sides
Par stock : 10 sides
2.5.3 Selection of suppliers
This is Friday afternoon. According to the fish chef there are 32 soles left in the various fridges.
Sales analysis shows that 25 portions are sold on average at every meal.
The standard portion size is 350 - 400gr-sole (whole).
Call the 3 suppliers below, take note of their offer on a market list and order from the most competitive one:
Genetti SA, Vevey Mulhaupt, Lausanne Rochat, Montreux
Item availability yes (Netherlands) yes (France) yes (France)
Price per kilo € 20.50 € 20.81 € 17.39
Size and packaging 350 - 400gr, fresh 350 - 400gr, fresh 450 - 500gr, fresh
Time for delivery next morning next morning next morning
Remark closed on Sunday closed on Sunday closed on Sunday
2.5.4 Selection of suppliers
You wish to order wheat flour and, at the same time, take the opportunity to change your supplier.
After a preliminary examination of the various catalogues and price lists of suppliers of mill products, 5 among them seem to deserve a second and closer evaluation.
Your job, as the purchasing manager of the RESTAURANT DE L’ANCIEN MOULIN:
Make, on the basis of the relevant details of each supplier, a first selection of 2 potential suppliers in order to build your new business card file, enabling you to place them in the financially interesting situation of mutual competition regarding your next purchase.
Then, decide which of your 2 pre-selected suppliers you are going to purchase from.
Standard of quality: See purchase specification form
Standard of quantity: See purchase specification form
Available storage space: 10 sacks
Maximum stock: 8 sacks
Par stock: 4 sacks
Actual stock: 6 sacks
Daily needs: 10 kg
Standard for price: € 1.06 / kg
Periodic order: On Monday
Explain your reasoning and show your calculations.
Once the supplier has been selected, complete the purchase order form
Purchase order
Purchase order Nº: ………………. Date of order:.....................
Payment conditions:............................
To:……………………. (supplier) From:……….....……………
……………………….. Deliver to:….....…………… (establishment)
……………………….. ………………...……………. (sector)
……………………….. (address) ………………...…………….
Delivery date:............ ………..……… Ref.:………..............……… (responsible)
Please deliver:
Item Quantity Unit Unit price Total price
Total cost
Signature:.............................................
3.6 Questions
Using a perpetual inventory method, the reorder point of Arabica coffee is reached today. The same supplier usually delivers other types of breakfast items. The reorder point of these goods not being reached, what do you suggest doing in order to optimise your purchase ?
Which factors influence the choice of ordering methods to be used (perpetual inventory or periodic purchasing methods)?
Argue a case for the usefulness of a market list.
A supplier is not able to comply with all your standards but makes a very competitive offer. Do you immediately reject his offer or do you keep it for further analyse?
Comment on the following criteria for selecting suppliers:
Your supplier:
Is a personal friend of the General Manager
Is a member of your family
Is one of your regular customers
Is financially involved in your business
Complies with your quality standards
Has the most competitive price
Can deliver very quickly at any time
Is located far away from your town
Is located in an other country
List typical examples of goods which could be subject to a "standing order".
What are the disadvantages of standing orders?
Once an order is placed, what happens to the different documents ("market list", "purchase order", "purchase record")?
How can you reduce the cost of the purchasing function?
As a Food & Beverage controller, which potential problems linked to the purchasing staff should you be aware of?
Establish the purchasing procedures of a large establishment for perishable and non perishable goods
What qualifications would you expect from a purchasing manager?
RECEIVING
4.1 Objectives
Describe, in chronological order, all steps in receiving
Define the optimal infrastructure for this activity
Determine the appropriate tools for receiving
Differentiate between stores and directs
Act judiciously in case of a wrong delivery
Monitor appropriately the empty packing and returns
4.2 Definition
Receiving encompasses all steps, from the arrival of the delivery person to the establishment of the receiving clerk’s daily report. Control over the quality, the quantity and the price of goods is made by comparing the order with the delivery.
4.3 Specific receiving documents
4.3.1 The meat tag
Stock form established in duplicate by the receiving clerk, attached to a perishable store item upon delivery and staying with the merchandise until use.
"Meat tag"
Nº 1001 Nº 1001
Delivery date: ........................... Delivery date: ...........................
Gross weight: ........................... Gross weight: ...........................
Unit price: ........................... Unit price: ...........................
Total price: ........................... Total price: ...........................
Supplier: ........................... Supplier: ...........................
Issuing date: ........................... Issuing date: ...........................
4.3.2 The credit memo
This document is established every time a delivery does not conform to the order in terms of quality, quantity or price
"Credit memo"
Nº 75
From : .............................….. To : .............................…..
(establishment) .............................…... (supplier) .........................…........
............................….... ..........................….......
Credit should be given on the following :
Delivery invoice Nº : .............................…... Delivery date : ...........................…......
Item Quantity Unit Unit price Total price
Total: .............…..
Reason:…….................................................................................................………....
......................................................................................................................………....
Delivery person: ..........................…...... Receiving clerk: ............…...
4.3.3 The receiving clerk’s daily report
Receiving clerk’s food daily report
Nº 257 Date:........……................
Item / supplier Quantity Unit Unit price Amount Total invoice Food directs Food stores Sundries
Daily total
Receiving clerk:...................................………….......
Receiving clerk’s beverage daily report
Nº 367 Date:.................
Item / supplier Quantity Unit Unit price Amount Total invoice Wines Beers Spirits Other
Daily total
Receiving clerk :.......................……..........
4.4 Exercises
4.4.1 Infrastructure and equipment of a receiving area
Define, for the receiving area below, the ideal working conditions and draw the equipment required to perform the receiving duties.
4.4.2 Controlling deliveries
Describe in detail all stages for receiving the deliveries below and fill in the appropriate documents for each of them.
1st delivery
Supplier Item Quantity Unit Unit price Remark
Howeg Tuna fish can 3/1 10 6 x 1 can € 55.90 Delivery OK
Howeg Vinegar 6 10-litre plastic container € 18.63 Delivery OK
2nd delivery
Supplier Item Quantity Unit Unit price Remark
Mulhaupt Soles, whole 36 kg € 19.88 Delivery OK
Mulhaupt Filets of perch 10 kg € 27.95 Delivery OK
3rd delivery
Supplier Item Quantity Unit Unit price Remark
Sutter meats Rack of beef 35 kg € 19.88 Delivery OK
4th delivery
Supplier Item Quantity Unit Unit price Remark
Progastro Wheat flour, White 6 25-kg sack € 26.40 1 sack damaged upon delivery
5th delivery
Supplier Item Quantity Unit Unit price Remark
Boissons Riviéra Coca-cola 10 24 x 33cl case € 16.40 Case : € 3.11
Bottle : € 0.19
Boissons Riviéra Draught beer Cardinal 5 15-liter container € 27.95 Container : € 31.06
Remark: you take this opportunity to return 10 empty bottle cases of 33cl mineral water as well as 5 empty draught beer containers.
4.5 Questions:
What do you do with the goods after having received and checked them?
What happens to the delivery documents at the end of the work day?
What are the qualifications required from a receiving clerk?
As the F&B controller, with which potential receiving staff problems can you be confronted?
STORING
5.1 Objectives
Differentiate the various storerooms according to the goods to be stored
Organise the layout of the various storerooms
Determine the optimal storing conditions for each kind of storeroom
Describe the appropriate way of storing items
Perform all administrative tasks related to storing
Differentiate and use the 3 methods for valuing stocks
5.2 Specific storing documents
5.2.1 The perpetual inventory form
A form which registers all stock movements and allows you to know at any time the theoretical stock level of a given item.
5.2.2 The Bin card
A little inventory cardboard form, used in particular for wines and spirits and which stays with the goods on the shelves.
Bin card
Item:…................................................... Minimum stock:...............................
Maximum stock:..............................
Carried forward:…..................................
Date In Out On hand
5.2.3 The Shelf label
A little cardboard form, affixed to the shelf where the item is stored, and which gives the main information about it.
Shelf label
Item:............................... Nº.:.....................................
Content:.....................
Par stock:.......................... Use:………….....................
5.3 Methods for giving a value to issues
5.3.1 FiFo
Means First in, First out. The goods issued are given the oldest possible price.
5.3.2 LiFo
Means Last in, First out. The goods issued are given the most recent price.
5.3.3 Weighted average purchase price
The goods issued are given an average price value.
5.4 Exercise
Fill in the attached perpetual inventory form until September 25th, taking into account the data below and apply the 3 methods for valuing issues:
Item: Wheat flour, white, Nº 1468, 25-kg sack
On hand, Monday, Sept. 10th
before issue: 6 sack at € 1.06 per kg
Daily needs: 10 kg
First issue: Monday, Sept. 10th
Delivery: Progastro, Sept. 19th, 2 sacks at € 1.02 per kg
Perpetual inventory form
Item:……............................................................................... Nº.......................
Date Supplier In Out Unit price On hand Stock value
5.5 Questions
What storage problems could increase the food or the beverage cost?
What standards should be set to minimise such problems?
What are the qualifications required from a storekeeper or a cellarman?
How important do you rate the control of following items : perishables /
non-perishables, cheap / expensive items ?
ISSUING
6.1 Objectives
Define the optimum conditions for issuing goods to the kitchen and the points of sale
Establish the required procedures (requisitions, transfers and returns) to ensure timely and proper issuing
Create a requisition form
Perform the administrative tasks inherent to issuing
Calculate the daily food cost
6.2 Specific issuing documents
6.2.1 The requisition
Document completed by the sector requiring any good currently in stock.
Example of beverage requisition (extract)
Requisition date:.............................. Approved by:............................
Item Nº Item Empties Required Issued Unit cost Total cost
2051 Budweiser 33 cl
2052 Carlsberg 33 cl
2053 Corona 33 cl
2054 Guiness 33 cl
2055 Heineken 33 cl
2056 Tiger draft 30 l
2101 Coke 33 cl
2102 Diet coke 33 cl
2103 Sprite 33 cl
2104 Tonic 20 cl
2105 Ginger ale 20 cl
2201 Evian 33 cl
2202 Perrier 20 cl
Issuing date:................. Issued by:................... Received by:...................
6.2.2 Transfer memo / return memo
Document filled in every time an item is transferred from the kitchen to a point of sale or vice versa and between points of sale.
It is also used to return any goods to their original storeroom.
Transfer / Return memo (underline the appropriate)
From:........................................................ Date:..........................
To:.............................................................
Item Nº Item Quantity Unit price Total
Total
Delivered by...................... Received by........................
6.3 Exercises
Create a standard requisition form for all kinds of food items.
Create a standard requisition form for wines.
Name, for each of the transfers below, 2 typical examples of food or beverage items.
From : To : Items
Restaurant Satellite kitchen
Bar Room - service
Production kitchen Bar
Bar Production kitchen
Fine dinning room Trattoria
Fine dinning room Banquets
Create a requisition procedure for dry-goods storeroom items.
Complete the daily food cost report using the data below and comment on the results.
Daily food cost report
Days
1 2 3
Directs 525.- 610.- 490.-
Requisitions 1750.- 1937.- 1610.-
Beverage to food 37.- 49.- 32.-
Employees’ meals 210.- 235.- 203.-
Manager’s meals 25.- 28.- 47.-
Offered to guests 110.- 98.- 77.-
Gratis to bar 12.- 18.- 10.-
Sales 5590.- 6500.- 4990.-
6.4 Questions
How are the requisitions processed immediately after issuing and at the end of the work day?
As a F&B controller, with which potential issuing problems, kitchen and point of sale staff, can you be confronted?
What value will you give to issued goods?
What are the required qualifications of a "Food and Beverage cost accountant"?
PRODUCTION CONTROL
7.1 Objectives
Define the goals of production control
Set the required standards (standard portion size, standard recipe, butcher test, cooking loss test)
List the various production control tools
Apply the different test procedures
7.2 Definitions
7.2.1 Standard portion size
Quantity of each dish or beverage which should be served every time 1 portion of this item is ordered. Quantified in terms of weight, volume or count.
7.3 Specific production control documents
7.3.1 The standard recipe
Document established every time a new preparation (food or beverage) is put on the menu or list. It is divided into 3 parts. The first one allows you to prepare the « mise en place », the second describes the preparation steps and the third is used to determine the food cost per portion.
7.3.2 The butcher test
Form established to monitor the yield of large pieces of meat or fish which are sold by the portion. This test is made every time the supplier changes, the merchandise quality is modified or for spot checks.
7.3.3 The cooking loss test
Form established to check the yield of large pieces portioned after cooking.
7.4 Example of standard recipe
Recipe Nº 20.4
Quantity Ingredients Recipe: Pork chop charcutière
10 pork chops, trimmed (200 g) Category Hot entrees
salt and pepper Number of portions 10
50g wheat flour Base recipe for:
1dl Oil
1dl white wine Preparation time: 20 minutes
1l charcutière sauce (14.8) Remarks: to be served with mashed potatoes, noodles, etc. ...
Preparation
Ref. Course of actions Quantity Ingredients Explanations
1 season the 10 pork chops
2 dust with 50g flour
3 Heat 1dl oil in a large frying pan
4 sauté in it the pork chops (gently) approx, 10 minutes
5 Place pork chops on a platter
6 degrease the pan
7 deglaze with 1dl white wine
8 Add 1l charcutière sauce
9 Correct seasoning
10 Coat pork chops
Personal Notes
Ingredients Quantity Unit price Cost Total cost
Rack of pork, trimmed 2 kg € 10.56 € 21.12
Seasoning € 0.03
Wheat flour 50g € 1.06 € 0.05
Oil 1dl € 3.11 € 0.31
White wine 1dl € 2.48 € 0.25
Charcutière sauce 1l € 1.74 € 1.74 € 21.93
Food cost of the recipe € 21.93
Food cost per portion € 2.19
7.5 Exercises
7.5.1 Standard portion size
Complete the chart hereunder:
Article Quantity Unit Number of portion Standard size
Gin 1 Bt of 70 cl 17,5
White wine 5 Bt of 75 cl 1 dl
Crème de cassis Bt of 70 cl 105 2 cl
Champagne 1 15 1 dl
7.5.2 Butcher test
Item 1 turbot of 5 kg
Price per kg € 21.74
Usable trim 2.9 kg (market price: € 0.31 per kg)
Cutting loss 0.1 kg
Standard portion size 200 g
Based on the result:
Calculate the quantity of fish to be purchased if the number of portions to serve is 130 and the standard portion size is 120 g.
Calculate the number of portions which can be served with 26 kg (gross) of fish if the standard portion size is 130gr.
Calculate the standard portion size if 1200 portions must be produced with 450 kg (gross) of fish.
Calculate the new yield if 120 kg of turbot have been purchased (average weight per fish : 6 kg) at a slightly better price and if 360 portions of 140 gr. have been produced.
7.5.3 Cooking loss test
Article Veal leg
Gross weight 10 kg
Price per kg € 6.21
Trimmed weight 7 kg 650
Cooked weight 6 kg 470
Bones and trim upon portioning out 1 kg 760
Complete the cooking loss test card below
7.6 Question
Beside the methods above, as a F&B controller, what other controls would you implement, in order to ensure that goods issued are appropriately used ?
SALES CONTROL
8.1 Objectives
Define and apply the different monetary and non monetary terms frequently used in sales control
Describe the basic principles of sales control
Explain what is and how to use the brake even point
8.2 Definitions
8.2.1 Sales
Exchange of a product and / or service in a restaurant, bar or other points of sale against payment.
8.2.2 Sales price
Amount billed to a client who buys a portion of any item.
8.2.3 Total sales
Total revenue for a specific period of time.
8.2.4 Sales by categories
Total revenue of a specified item category.
8.2.5 Sales by waiter
Total revenue per waiter for a specific period of time.
8.2.6 Sales per seat
Total sales divided by the total number of seats.
8.2.7 Average check
Total sales divided by the number of customers for a specific period of time.
8.2.8 Total number of portions sold
Total number of portions sold during a specific period of time.
8.2.9 Cover
A client consuming one or several food items, what ever they are.
8.2.10 Average number of covers
Total number of covers divided by the number of hours, operating days or waiters.
8.2.11 Seat turnover
The number of times one seat is occupied during a predetermined period of time.
8.2.12 Sales mix
Relative quantity of each item sold in comparison to the total number of items sold within its category.
8.2.13 Break even point
Point at which the sum of all costs equals sales, such that profit equals zero.
8.3 Specific sales control documents
8.3.1 The guest check
Bill which is usually numbered, in duplicate, hand written or printed from a computerised system, established by the sales person or the cashier, which lists all items ordered by the client and allows cashing.
Restaurant Bellevue VAT Nº : 52786342
Nº 625178 Table Nº : ...............................
Number of covers: ...............................
Waiter's Nº : ...............................
Quantity Item Unit price Total price
Total
including 7,5% VAT
Room Nº :
Name: Signature:
8.3.2 Sales statistics
Ideally, a computerised document established at the end of a predetermined period of time which, for instance, details sales mix, gross revenue and theoretical cost of merchandise.
8.4 Exercises
8.4.1 Various statistics
Calculate the sales per seat
Revenue of the day: 3'200.-
Number of seats: 75
Calculate the average sales per cover
Revenue of the day: 8'300.-
Number of covers: 57
Calculate the seat turnover
Number of covers: 730
Number of seats: 80
Number of covers: 1210
Number of seats: 220
Number of covers: 65
Number of seats: 41
8.4.2 Sales mix
Items Number of portions sold Sales mix
Caramel custard 75
Chocolate mousse 36
Crêpes Suzette 43
Coupe Melba 21
Coupe Romanoff 98
Cheese platter 17
Selection of sorbets 103
Fruits salad 77
Total
8.4.3 Sales statistics
Analyse the following sales statistic, comment on the results and identify the missing information
8.4.4 Break even point
Calculate the minimum number of portions to sell, knowing that:
Item: Bouillabaisse
Sales price per portion: € 22.67
Food cost: 35%
Other variable costs: 37%
Part of fixed cost for this item: € 6'211.18
Calculate the minimum number of covers to serve, knowing that:
Average check: € 32.30
Cost of merchandise: 36%
Other variable costs: 36%
Fixed costs: € 7'453.42
Calculate the minimum revenue to reach, knowing that:
Fixed costs: € 12'422.36
Variable costs: 70%
8.5 Questions
As an F&B controller, which potential problems, linked to the sales personnel and the cashiers, should you be aware of?
From the client's point of view, which important criteria are linked to the bill presentation?
In a fully computerised system, how is the order transmitted?
Name the advantages and limitations of a fully computerised sales system.
MONTH END REPORT
9.1 Objectives
Describe the standard procedure for taking the physical inventory
Choose the most appropriate system for valuing stocks
List and establish the different documents forming part of the Food & Beverage controller's month end report
Analyse the results and determine the reasons for any variation to standards
Suggest realistic corrective actions
9.2 Definitions
9.2.1 Food or Beverage costs reconciliation
Calculations allowing you to know the net cost of merchandise sold, in terms of value and percentage of the net revenue. It is the starting point for comparing and analysing the monthly actual results with the theoretical cost of merchandise and the accumulated daily Food cost and / or Beverage cost.
9.2.2 Inventory variations
Task which you allows to determine existing variations between the theoretical and the physical stock of merchandise. It shows us where fraud or mistakes are located.
9.2.3 Stock rotation
Calculation which allows you to determine how many times the average stock has been renewed during a specific time period. With this result, we can estimate if the stock level is too high, too low or correct, and so adjust it.
9.2.4 Returnable packaging reconciliation
Short calculation which determines the returnable packaging total value for breakage and / or loss.
9.2.5 Beverage potential sales report
Adjustment operation of the actual net beverage cost taking into account full bottle sales of spirits and cocktail beverage ingredients (spirits and soft drinks).
9.3 Documents
9.3.1 Inventory sheet (manual system)
Hôtel du Rivage, Nyon
Date:................................... Storeroom: .......................................
Item Nº Item In stock TheoreticalStock Variations
Signatures:........................................ .............................................
9.3.2 Food cost reconciliation form
Food cost reconciliation
Month: August 19..
Initial inventory
Dry goods storeroom 50'304.25
Kitchen
Total 50'304.25
Purchases 181'460.47
Adjustments 375.80
Total 181'084.67
Final inventory
Dry goods storeroom 61'940.66
Kitchen
Total 61'940.66
Beverage to food 1'443.81
Gross cost of merchandises consumed 170'892.07
Adjustments
Food to beverage 372.58
Staff meals 15'995.37
A&P (offered to guests) 9'414.90
A&G (Managers' meals) 294.17
Officers' checks 4'219.00
Offered to employees 1'649.85
Loss and breakage 562.05
Steward sales (sales at purchase price) 171.35
Gratis to bar 1'115.64
Food tasting 183.10
Food display 300.85
Fruit basket 1'465.70
Total 35'744.56
Net cost of merchandises sold 135'147.51
Gross revenue 384'588.65
Adjustments 1'568.30
Net revenue 383'020.35
Food cost % 35,28%
Date:........................................ Signature:....................................
9.3.3 Beverage cost reconciliation form
Beverage cost reconciliation
Month: August 19..
Initial inventory
Cellar 258'648.76
Restaurants and bars 27'372.00
Total 286'020.76
Purchases 52'367.56
Adjustments 4'721.90
Total 47'645.66
Final inventory
Cellar 248'353.05
Restaurants and bars 22'694.00
Total 271'047.05
Food to Beverage 613.38
Gross cost of merchandises consumed 63'232.75
Adjustments
Beverage to food 1443.81
Kitchen beverages 428.50
A&P (offered to guests) 2'627.00
A&G (Manager's beverages) 118.30
Officers' checks 496.00
Offered to employees 494.56
Loss and breakage 160.48
Steward sales (sales at purchase price) 2'439.40
Staff beverages 870.97
Beverage tasting
Beverages to VIP rooms
Total 9'079.02
Net cost of merchandises sold 54'153.73
Gross revenue 212'568.55
Adjustments 628.15
Net revenue 211'940.40
Beverage cost % 25,55%
Date:...................................... Signature:.....................................
9.3.4 Returnable packaging reconciliation report
Item Initial inventory Purchases / returns Sub total Final inventory (physical) Variation + / - Value
+ / -
Bottle 0.19 2'720 + 72 2'792 2'658 - 134 - 25.46
Bottle 0.31 688 - 12 676 628 - 48 - 14.88
Case 3.11 152 - 12 140 143 + 3 + 9.33
Case 6.21 52 0 52 49 - 3 - 18.63
Palette 15.53 8 0 8 8 0 0
Beer container 31.06 15 0 15 15 0 0
Gas container 31.06 3 0 3 3 0 0
Total - 49.64
Inventory variations report
9.3.6 Stock rotation report
Food inventory Beverage inventory
Initial inventory 1'000.- Initial inventory 2'000.-
Final inventory 900.- Final inventory 1'800.-
Total inventory 1'900.- Total inventory 3'800.-
Average inventory 950.- Average inventory 1'900.-
Consumption 2'300.- Consumption 650.-
Rotation rate Rotation rate
Current month 2,4 Current month 0,34
Last month 2,5 Last month 0,41
Last year same month 2,4 Last year same month 0,34
9.4 Exercises
9.4.1 Food cost reconciliation
Reconcile the food cost according to the following data:
Cost adjustments:
1 lobster dead before cooking 20.50
2 kg spoiled mussels 6.83
New recipe test and tasting 31.06
Steward sales, 1 dz. oysters 4.47
A&P 32% of sales A&P
A&G 32% of sales A&G
Staff meals 152.17
Purchases 12'900.62
Beverages used for food preparation 128.35
Initial inventory 1'910.12
Final inventory 2'313.73
Sales adjustments:
A&P 224.78
A&G 714.91
Sales report
Food cost reconciliation
Initial inventory
Dry goods storeroom
Kitchen
Total
Purchases
Purchases
Adjustments
Total
Final inventory
Dry goods storeroom
Kitchen
Total
Beverage to food
Gross cost of merchandise consumed
Cost adjustments
Staff meals
Officer’s check
A&G (manager)
A&P (offered)
Breakage (Spoilage)
Steward sales
Food to beverage
Total adjustments
Net cost of merchandise sold
Gross revenue
Adjustments
Net revenue
Food cost %
Date:................................ Signature:.........................
9.4.2 Beverage cost reconciliation
Reconcile the beverage cost according to the following data:
Initial inventory: Cellar: 45'627.10
Restaurant / bar: 5'220.00
Purchases 3'610.15
Discount 722.05
Final inventory: Cellar 40'605.20
Restaurant / bar: 5'310.00
"Food to Beverage": 282.00
Adjustments: Kitchen beverages: 300.00
Beverage to food: 625.00
"A&G": (Bev. cost 27%) 876.00
"A&P": (Bev. cost 27%) 592.00
Spoilage: 80.00
Steward sales: 35.00
Gross sales: 24'220.50
Beverage cost Reconciliation
Initial inventory
Cellar
Bars - Restaurants
Total
Purchases
Purchases
Adjustments
Total
Final inventory
Cellar
Bars - restaurants
Total
Food to beverage
Gross cost of beverages consumed
Cost adjustments
Kitchen beverages
Beverage to food
A&G (manager)
A&P (offered)
Breakage (Spoilage)
Steward sales
Total adjustments
Net cost of beverages sold
Gross revenue
Adjustments
Net revenue
Beverage cost %
Date:................................ Signature:...............................
9.4.3 Stock rotation rate
Calculate the stock rotation rates according to the following data:
1. Item: Draught beer (15 l.)
Initial stock: 20
Final stock: 15
Monthly consumption: 46
2.Item: Soft drinks
Initial stock: 3'425.-
Final stock: 5'612.-
Monthly consumption: 4'043.-
3. Item: Wines
Initial stock: 368'435.-
Final stock: 357'510.-
Monthly consumption: 66'428.-
4. / 5. Calculate the same according to the food cost and
beverage cost reconciliation results
9.5 Questions
As a Food and Beverage controller, which potential problems, linked to the inventory taking staff, should you be aware of?
Is it preferable to take physical inventories using pre established lists?
Name reasons to explain inventory variations
Name reasons to explain the consumption of returnable packaging
What are the reasons for a food cost higher than standards?
What are the reasons for a food cost lower than standards?
What are the reasons for a beverage cost higher than standards?
What are the reasons for a beverage cost lower than standards?
Is it worth looking systematically for differences between results and standards?
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