FOOD COST CONTROL

Introduction

Food cost has a direct impact on a restaurants’ operating profit. Because no

two operations are identical, it is necessary to calculate the food cost of your
particular restaurant monthly. Industry averages cannot be used as an
accurate standard.

The concept of food cost must be examined at several different levels in

order to take into account any and all variables. For example, one variable is
your menu sales mix. When one menu item sells better than another, there
will be variances in your overall food cost and you should know how this
affects your profits.

Hotel food business would show you how to improve your food cost and
create a higher profit margin. This course demonstrates how to control costs
before the food reaches the back door to when the guests are served. You
will be shown how to cost recipes, price menu items, select the right
suppliers, determine a monthly food cost, and much more.

You will receive 10 standard forms such as:

Standardize Recipe Costing

Menu Item Pricing
Quotations for bid
Inventory Sheet
Daily Kitchen Report
Menu Analysis
Daily Prep Sheet

Food Cost Control also contains other forms that will help to organize your
operation armed with this type of information you will be able to control
food cost and move more profits to the bottom line.
Generating Daily Food Cost
PROCEDURE:

• Food cost is generated by system by transferring sale from outlet

and issues from stores.
• Sales figures are automatically totaled for all the outlets in the
system.
• Issues are entered by the stores and are termed as food cost and
even contains the cost of food consumed by staff cafeteria, A&G,
bar snacks which actually need to be considered as part of
beverage cost. Amenities served to guests.

Complimentary meals to guests etc.

These extra burden on issues need to be reduced to arrive at the actual cost
of food consumed by the guests.
Allowable deduction is given such as:

1. A & G / N.C. KOT: - sales price * cost price percentage.

2. Staff cafeteria cost: - Number of staff * approved rate.
3. Gratis to bar: - Bar snacks issued to outlet.—Taken out from the
requisitions.
4. Beverages: - Juices issued to bar.—Calculated from requisitions.
5. Amenities: - Number of rooms occupied * approved rate of amenities.
6. Complimentary B/F: - Number of guests having breakfast * cost of
breakfast.
7. Food Cost %:- Cost of food divided by the Net sale * 100

Cover analysis report of food

PROCEDURE:
• Cover analysis is carried out on daily basis.
• This report is a system generated one.
• It shows the budgeted revenue and the covers of a day.
• The actual day’s revenue and the number of covers sold are
brought to the cover analysis format automatically by the system.
• This gives enough detail for an analysis from the variance arrived
between the budgeted and actual figures.
• It prompts for a management decision if required.
The Food and Beverage Cycle on which operations works

PURCHASING

RECEIVING

STORING AND ISSUING

PRODUCTION

SERVICE

Work hard on your cost controls and be consistent about

them. One element of controlling food cost covers all seven
categories: thorough training. Give your staff the ability and
knowledge and confidence to do their jobs properly and to your
specifications. Inconsistency and failure to enforce procedures will
drive costs skyward. Failure here is like throwing money away.

1. ORDERING - The first step is to order right. Having

detailed recipes, designing purchasing specifications, doing
comparative shopping based on those specifications, and
comparing quality, price and service, etc. Oh yes, don’t
order too early in order to avoid spoilage, wasted storage space
and lost interest on your money. Don't order too late, so premium
costs and delivery charges accrue? I remember being told standing
orders were a bad habit.

2. RECEIVING - The fundamentals are obvious: count; weigh; inspect

for condition and quality; verify against the purchase order; keep
the receiving area clean and uncluttered; limit access to the
receiving area; train the person receiving and make him or her
responsible. Get credit memos from the delivery driver.

3. STORING - Is the method and place of storage for the various items
appropriate for the item? Is it secure from pilferage? Are the
shelves strong enough for the product, allow air circulation and
easy to clean? Are all items stored at a temperature appropriate for
that product? Are items dated (with year, in some cases) and
priced? Is the storage area orderly and clean? Should shelves be
labeled and maybe even stocking quantities noted?

4. ISSUING - What is issuing based on? Who has access and or

authority to issue or take things from the secured store rooms
and walk-ins? Are issues being made in appropriate quantities
and at appropriate times? Is there a relationship to volume or
reasonable par stocks? Are issues being accounted for? Is a
perpetual inventory or sign out sheet designed specifically for your
operation or a particular store room in use?

5. PREPARATION - I'm not so clear about the details here any more
because it has been a long time since I worked in a kitchen
regularly. Phrases that come to mind include: trim properly;
use trimmings for stock pots and other recipes. Proper tools, sharp
knives, clean and neat working area, enforcing a policy of
following recipes, and having photos of finished products available
and used regularly are also critical. Enough said, as I suspect my
readers know a lot more than I do about this!

6. COOKING - Various considerations here, again my readers know more

than I. Proper temperatures, proper cooking times, following
recipes carefully, using photographs of finished products, correct
size, material, and type of utensils and cookware, clean work area.

7. SERVING - Serving is not only about portion control, it is also

about decisions made regarding portion size and presentation. With
a buffet, it is obvious. Proper serving utensils, proper
holding/serving equipment, right presentation order, plate sizes, etc.
in a bar it’s easy, too. Jiggers or other measuring and control
devices and very strict discipline. I take it back, the
discipline isn't easy especially in tight labor markets. Dining
room service should be easy to control using good kitchen
supervisors, trained cooks, photographs for cooks and servers,
etc. Watch what comes back from bused tables to see if
portions are proper. Marketing decisions may drive large
portions but if the patrons are not eating it or taking it home,
the portion size or the recipe should be reconsidered. Proper china
for each item served is important for both presentation and portion
control.

F&B Cycle of the Hotel RAMANASHREE BRUNTON

PURCHASE

RECEVING AND ACCOUNTS

STORING

ORDERING

ISSUING

PRODUCTION

SERVICE
Techniques used for Food Cost Control in HOTEL RAMANASHREE
BRUNTON are:

• Ordering the perishable items and dairy products daily.

• Thursday and Fridays, they have more orders and Business.
• They marinate most of the meat products to reduce the cooking time.
• They reduce the portion size in Ala cart.
• Purchase through credit purchase contract monthly basis.
• Cash purchase from METRO.
• They always keep limited Man Power
• Buy Meat products undressed and for continental section they order
cuts of meat products.
• Groceries order once in 15 days and maintain stock for 15 days.
• Food cost control by putting 25% to 35% profit in the menu price
excluding labor and expenses.
• The date tag is applied on all the perishable and groceries items after
receiving and before storing.
• The food preparation is reduced and Mise en Place will be ready
before the event.
• Production as per Booking and A la Carte
• Reuse food product if its hygienically allow to use in some other dish
• The inventory done once in a month for (Fish, Chicken and Meat).
• Try to reduce the meat products in the Banquets party by suggesting
the customer before taking the order and planning the menu.
• Always maintaining the Standard Recipes.

Their SPS (Standard Purchase Specification) are

• Chicken for tan door will be 700 gms 800gms each
• They order more chicken brest to for continental section
• The eggs will be of 70gms each
• Fish will come in fillets for continental and whole fish for Indian
section
• Butter and other cheese brand of amul
The best business hotel chain and a world of exotic locations, luxurious
rooms exclusive service and fun filled moments for business as well as
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About
44 Well appointed rooms, just 100 metres away from M.G. Road.
Rooms
1. 8 Studio rooms
2. 28 Standard rooms
3. 5 Deluxe rooms
4. 3 Suite rooms
5. Wi-fi enable premises
Conferences
Banquet Hall - 200pax
Multi-Cuisine Restaurant of 52pax including Coffee shop