food cost control
TRANSCRIPT
Food cost controlFood cost control
• It can be defined as guidance and regulation of cost of operations.
• Under taking to guide and regulate cost needs to ensure that they are in accordance of the predetermined objectives of the business.
• Guidance and regulations of cost are set as per expressed in the policy statements and budget of undertakings:
Cont..Cont..• Food cost control means :
• You have a stick to your predetermined standards.
• Set standards appropriate to your market before you buy, prepare and sell food.
• Cost control procedures.
What is Food Cost?What is Food Cost?
Cost of Food Cooked
+
Wastage
+
Spoilage
+
Shrinkage/ Pilferage
What is What is NotNot Food Cost Control? Food Cost Control?
Bringing down the cost at the expense of
• Quality & Guest Satisfaction
Attitude:
• Penny Wise, Pound Foolish
• Golden Goose
Why should you Control Food Cost ?Why should you Control Food Cost ?
• Rs.1 Saved = Rs.10 Sales• Adds Straight to the Bottom Line• Competitive World
How do you Control Cost?How do you Control Cost?
1. Shrinkage/ Pilferage
Short Term: Better Security System
Long Term: Create a working atmosphere, where people belong and are proud to be contributing to the growth of the company
How do you Control Cost?How do you Control Cost?
2. Spoilage
• Better Storage Facilities
• Better Kitchen Design
• Stock Management
How do you Control Cost?How do you Control Cost?
3. Wastage
• Temporary / Stressful / Negative / Life reducing way: Policing
• Permanent / Enjoyable / Positive / Life enhancing way: Bring in a culture of High Performance
How do you Control Cost?How do you Control Cost?
4. Cost of Food Cooked
• Planning the Quantity
• Ensuring the Quality
ObjectiveObjective
• To analyze income and expenditure:-– Gross profit = sales – food cost– Net profit = sales – (food cost + labour cost + overheads)
• Pricing of food:-Selling Price = food cost + labour cost + overheads + profit
(20-30%) (7-10%) (6-10%) (50%)
• Prevention of inefficiencies:-
• Data for the management:-
Factors affecting the percentage of Factors affecting the percentage of food cost- food cost- HurdlesHurdles
• Food Purchasing
• Menu Planning
• Method of pricing
• Culinary Skills
• Service Skills
• Avoiding Wastage
Phase of control proceduresPhase of control procedures
• Planning
• Operational
• Control after the event
Phases of Control
Planning Operation Control after the Event
Finanacial Marketing Catering Purchasing Receiving Storing Issuing Production Sales Reporting Assesment Correction
Financial PlanningFinancial Planning
• Budget- Whole organization & single unit
• Total Revenue
• Expenditure
• Borrowing
• Profit
• Shares
• Debentures
MarketingMarketing
• Segment• Clientele• Turn over• Market Share• Average Spending Power• Choice• Trends• Advertisement• Promotions
CateringCatering
• The type of customer• The type of menu• Beverage provision necessary for operation• Food quality standard• Method of pricing
• Type and quality of service• Degree and décor and comfort• Type and style of table and chairs
OperationsOperations
• Purchasing
• Receiving
• Storing
• Issuing
• Production control
• Sales control
Management control after the Management control after the eventevent
• F & B cost reporting
• Assessment
• Correction
Cont..Cont..
Operation
Control After the Event
Planning
Problems of F&B IndustryProblems of F&B Industry
• PERISHABILITY OF THE PRODUCT
• UNPREDICTABILITY OF VOLUME OF BUSINESS
• UNPREDICTABILITY OF THE MENU MIX:
• SHORT CYCLE OF CATERING OPERATION
• DEPARTMENTALIZATION