Food Purchasing Control

Copyright © 2006 by John Wiley & Sons,

Responsibility for Purchasing

 Who does the purchasing?

– Owners
– Managers
– Chef
– Steward
 Oneperson responsible so they can be held
accountable

Copyright © 2006 by John Wiley & Sons,

Perishables & Non-perishables
 Perishables; those items that are typically
fresh foods, and have a relatively short shelf
life
 Non-perishables; those food items that have
a relatively longer shelf life
– Groceries
– Staples
– Storeroom items

Copyright © 2006 by John Wiley & Sons,

 Developing Standards and Standard
Procedures for Purchasing

1. Quality of food purchased

2. Quantity of food purchased
3. Prices at which food is purchased

Copyright © 2006 by John Wiley & Sons,

Uses for Standard Purchase
Specifications

1. They force owners or managers to determine exact

requirements in advance
2. They are often useful in menu preparation
3. They eliminate misunderstandings between
stewards and purveyors
4. Allows for true competitive bidding
5. Eliminates need for detailed verbal descriptions
6. They facilitate checking food as it is received

Copyright © 2006 by John Wiley & Sons,

Steward’s Market Quotation List
 Steward’smarket quotation list - a form often
used as a tool by food purchasers for;
– Taking daily inventory of perishables
– Determining suitable order quantities
– Recording market quotations
– Selecting vendors
 Parstock – maximum quantity that should be
on hand at any given time

Copyright © 2006 by John Wiley & Sons,

Periodic Order Method

 Periodic order method:

Amount required for the upcoming period
- Amount presently on hand
+ Amount wanted on hand at the end of the
period to last until the next delivery
= Amount to order

Copyright © 2006 by John Wiley & Sons,

Perpetual Inventory Method

 Perpetual inventory method:

Par stock
- Reorder point
= Subtotal
+ Normal usage until delivery
= Reorder quantity

Copyright © 2006 by John Wiley & Sons,

Determinants for Maximum
Quantity of Perishables on Hand

1. Storage space
2. Limits on total value of inventory prescribed
by management
3. Desired frequency of ordering
4. Usage
5. Purveyors’ minimum order requirements

Copyright © 2006 by John Wiley & Sons,

Suppliers to Foodservice
Operators

1. Wholesalers
2. Local Producers
3. Manufacturers
4. Packers
5. Local farmers
6. Retailers
7. Cooperative associations

Copyright © 2006 by John Wiley & Sons,

Centralized Purchasing
Advantages:
 Foods and beverages can be purchased at lower
prices because of volume
 Desired quality can be obtained more readily
because the steward has a greater choice of markets
 Foods can be obtained that meet specs
 Larger inventories can be maintained, ensuring
reliable supply to individual units
 Possibility of dishonest purchasing in individual units
are greatly reduced

Copyright © 2006 by John Wiley & Sons,

Centralized Purchasing

Disadvantages:
 Each unit must accept the standard item in
stock and has little freedom to purchase for
its own particular needs
 Units can’t take advantage of local specials
 Menus are ordinarily standardized, limiting
the individual unit managers’ freedom

Copyright © 2006 by John Wiley & Sons,

Means of Obtaining Price Quotes

1. Telephone
2. Fax
3. Quotation sheets obtained by mail
4. Fax modem
5. Information supplied by salespersons
6. Direct computer links with purveyors via the
internet or dedicated telephone line

Copyright © 2006 by John Wiley & Sons,

Necessary Receiving Standards

1. The quantity delivered should be the same

as the quantity listed on the Steward’s
Market Quotation List and the invoice
2. The quality delivered should conform to the
establishment’s specifications
3. The prices on the invoice should match
those circled on the Steward’s Market
Quotation List

Copyright © 2006 by John Wiley & Sons,

Sample Invoice
Meats R’ Us
777 Cow Pasture Way
Bulls tail, IO
To: Grandview Bistro Date: October 3, 200X

Quantity Unit Description Unit Price Amount

20 lbs. Beef tenderloin 9.20 184.00
20 lbs. Leg of lamb 12.40 248.00
$432.00

Copyright © 2006 by John Wiley & Sons,

 Inventory Control
 Regardless of the methods used by employees to
requisition food and beverage products, or management to
issue these, inventory levels will be affected.
 It will be your responsibility and that of your purchasing
agent to monitor this movement and purchase additional
products, as needed.
 Re-stocking the inventory is critical if product shortages
are to be avoided and if product necessary for menu item
preparation is to be available.

Copyright © 2006 by John Wiley & Sons,

Inventory Control

 Operators must be careful not to overload storage capacity.

Increased inventory of items generally leads to greater
spoilage and loss due to theft.
 Shelf life is the amount of time a food item retains its
maximum freshness, flavor, and quality while in storage.
The shelf life of food products varies greatly.
 The cost to the vendor for frequent deliveries will be
reflected in the cost of the goods to the operator.

Copyright © 2006 by John Wiley & Sons,

Inventory levels are determined by a variety of factors such
as:

1. Storage capacity
2. Item perishability
3. Vendor delivery schedule
4. Potential savings from increased purchase size
5. Operating calendar
6. Relative importance of stock outages
7. Value of inventory dollars to the operator

Copyright © 2006 by John Wiley & Sons,

 Receiving Standard Procedure
1. Verify the quantity, quality, and price for each
item conforms exactly to the order placed
2. Verify invoice with rubber invoice stamp
3. List foods delivered each day on the receiving
Clerk’s Daily Report for that day
4. Forward paperwork to proper personnel
5. Move food to appropriate storage areas

Copyright © 2006 by John Wiley & Sons,

The Invoice Stamp Provides for:

1. Verification of the date food received

2. Signature of the receiving clerk who vouches for
the accuracy of the order
3. Steward’s signature, acknowledging delivery of
food items
4. Food controller’s verification calculations are
correct on the invoice
5. Signatory approval of the bill for payment by an
authorized individual before a check is drawn

Copyright © 2006 by John Wiley & Sons,

Receiving Clerk’s Daily Report
 Directs – foods that extremely perishable by
nature, purchased daily.
– For immediate use
– Considered to be issued on delivery
– Go directly onto today’s food cost
 Stores – perishable but have a relatively
longer shelf life.
– Not for immediate use
– Included on food cost when they are issued

Copyright © 2006 by John Wiley & Sons,

Training for Receiving

 The great problem in employing receiving

personnel is with the vast amount of
knowledge of foods these workers require
 This may explain why some restaurants do
not require quality checks upon delivery
 Someone has to do it!!!
 If not your customers will!!!

Copyright © 2006 by John Wiley & Sons,