Unit- 7 Planning for Food and beverage control.pptx

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1. Unit-6 Planning for Food and Beverage Control By: Kumar Thapa

2. Food and beverage control may be defined as the guidance and regulation of the costs and revenue of operating the catering activity in a food and beverage establishment. A successful holistic food and beverage control is imperative for any type of food and beverage operation regardless of its size. The cost of food and beverage can range from 25% to up to 50% depending on the type of operation. A food and beverage control system is a means of computerizing best practice within a restaurant or catering operation. It gives managers a better idea of the flow of food through the restaurant, enabling them to plan cash flow and stock control more effectively. At the sharp end, it provides chefs with a more structured way of planning menus, taking into account nutritional and financial considerations. Introduction- Food and Beverage Control

3. A control system can only identify problem areas and trends in the business. The system cannot automatically correct such problem areas. A control system will require constant management supervision to ensure that it functions efficiently . A control system will need management action to evaluate the information produced and to act upon it. Importance - Food and Beverage Control

4. Analysis of income and expenditure: The analysis is solely concerned with the income and expenditure related to food and beverage operations. The revenue analysis is usually by each selling outlet, of such aspects as the volume of food and beverage sales, the sales mix, the average spending power ( ASP)of customers at various times of the day, and the number of customers served. The analysis of costs includes departmental food and beverage costs, portion costs and labor costs . Establishment and maintenance of standards: The basis for the operation of any food and beverage outlet is the establishment of a set of standards which would be particular to an operation. Pricing: An important objective of food and beverage control is to provide a sound basis for menu pricing including quotations for special functions. Objectives - Food and Beverage Control

5. Prevention of waste: To achieve these levels of performance it is necessary to prevent wastage of materials caused by such things as poor preparation, over-production, failure to use standard recipes, etc. This can only be done with an efficient method of control, which covers the complete cycle of food and beverage control. Management information: A system of control has an important task to fulfil in providing accurate up-to-date information for the preparation of periodical reports for management. This information should be sufficient so as to provide a complete analysis of performance for each outlet of an establishment for comparison with set standards previously laid down. Objectives - Food and Beverage Control

6. It may be defined as a list of the detailed characteristics desired in a product for specific use. It contains information like name of the product, quality standards, price and no. of the portion to be produced out of it. Specification is prepared with the help of the concerned H.O.D., e.g. for the kitchen, all the standards of the raw material is prepared by the Executive Chef and for the F & B service department, it is prepared by the F & B manager. All the specifications for the food product should include the following information : Name of the product. Grading (if any). Size of the container (quantity). Unit. Product used. Weight. Unit price Standard Purchase S pecifications

7. Written specifications are necessary for an efficient food service operation. When specifications are written supplier, receiving clerk and food service manager all can determine the products received are what were ordered. A good written specification should meet the following criteria : Should be legible. Should be identifiable. Fair to the supplier and productive to the buyer. It should be capable of meeting with several suppliers for bidding. Both the parties should understand it. Standard Purchase S pecifications

8. Quality assurance. It helps the supplier to supply the right product. It helps the receiving clerk to identify the right product. Right price. It helps in maximizing the output. It helps in producing the right amount of portion. All the purchasing procedures get easier. PS. is a tool of management control. Wastage is minimized . Advantages- Standard Purchase S pecifications

9. The supplier selection/ consideration process is a systematic approach used by companies in identifying, evaluating, and choosing third-party product vendors or service providers. It involves seven main stages, starting from determining the needs of the organizations and ending with managing the relationship with the supplier. The entire process ensures that suppliers meet the organization’s specific needs and requirements for their operations. Supplier Consideration

10. Identify Organization’s Needs The first phase is defining the company’s requirements and expectations that complete the product or service they plan to offer. This is facilitated through constant back-and-forth with team members, conducting needs analysis, assessing feasibility, looking at trends, and creating project timelines. Establish Criteria for Evaluation Adherence to quality management systems and best practices Good financial health and stability Capacity to handle volume and scalability Fair pricing structures and payment terms Satisfactory risk mitigation strategies Ethical practices, environmental initiatives, and social responsibility Supplier Selection Process

11. Screen Suppliers Based on the criteria set, businesses can begin to pre-qualify potential suppliers by conducting thorough market research, reviewing supplier profiles (particularly their licenses and certifications), and requesting references. Ask for Requests for Proposal (RFPs) This is the part where organizations actively reach out to their top choices to solicit proposals and quotations. The RFP should detail these essentials: Full scope of the project Requirements listing Procurement process Timeline of activities Commercial terms and conditions Product specifications Pricing Delivery schedules Supplier Selection Process

12. Evaluate and Select Suppliers Organizations are likely to receive numerous RFPs to review. To expedite this part of the process and come up with a manageable number, companies should create a scoring system based on qualitative and quantitative analysis. Factors like quality, pricing, reliability, and overall value should be considered . Audit Supplier Sites During this look-see of facilities, production process, and quality control measures, business auditors can use digital checklists to streamline the inspection and immediately send back reports to their managers for a more efficient review . Finalize the Supplier Agreement and Relationship Management The final stage is selecting the supplier and entering into a formal agreement outlining the terms and conditions with confidentiality clauses and mechanisms for resolving disputes. This step also involves the commitment of both parties to collaborate and ensure both quality management and transparency throughout the contract’s lifespan. Supplier Selection Process

13. The purchasing process is the steps a business goes through to complete a transaction. Businesses typically go through a formal process when purchasing something, unlike consumers. Purchases for a business can require research, input from different departments, negotiations and invoicing . Identify the need: Specify the requirement Find and choose a supplier Negotiate costs Get order approval Place the order Receive and approve the order Review supplier performance Purchasing Process

14. The Purchase Manager is responsible to the administration of the purchase department . Responsible to maintain and upkeep of all purchase documents. For all purchases obtain proper requisition from with specification for item and Budget Code duly authorized and inky then place written purchase orders. Locate surveyors/vendors, find out there they are situated and extend of their resources . Maintain a choice of vendor and suppliers. Establish ‘Lead Time’ of delivery of various vendors. Be familiar with Governmental procedures of import. Maintain cordial relation with food production, control, accounts Government agencies and vendors and marketing Duties and Responsibilities of Purchasing Manager

15. Have knowledge of commodities. Know the basis cuts of meats and the differences between various goods. Be familiar with method of processing, grading, packing of the fresh / canned frozen and dehydrated fruits, vegetables groceries and staple. Have a general knowledge of crop condition in market. Carry outlines to establish quality of Purchase. Advise and guide the Food and Beverages Manager/Chief in planning their menus , Visit the local fruits and vegetables markets to find out prices and seasonal items and advise Management accordingly. Qualities to be adhered by a Purchase Manager

16. Have knowledge of commodities. Know the basis cuts of meats and the differences between various goods. Be familiar with method of processing, grading, packing of the fresh / canned frozen and dehydrated fruits, vegetables groceries and staple. Have a general knowledge of crop condition in market. Carry outlines to establish quality of Purchase. Advise and guide the Food and Beverages Manager/Chief in planning their menus , Visit the local fruits and vegetables markets to find out prices and seasonal items and advise Management accordingly. Qualities to be adhered by a Purchase Manager

17. The receiving process is concerned with the task of monitoring the receipt of all incoming merchandise thoroughly and systematically to ensure that the quantity, quality and price of each item delivered conforms exactly to the order placed . Below are the importance of receiving Not a revenue producing department. Control of quality and quantity. Receiving of items through purchase orders/ daily perishable items. T o keep a note regarding the agreement with the suppliers Standard specifications are taken into the consideration. Receiving

18. Receiving of goods by quality and quality. Compare with challans /bills/purchase orders. Checks for quality, packing, specifications and quality. In case of items for maintenance, housekeeping, stewarding, etc. it is checked by quantity. In case of perishables these are checked for quality by the Main Kitchen Chef and by the Butchery Chef in case if butchery items only. Selling of the scrap also. Making daily Receiving report, shortage receipt, scrap report, Gate pass and soft drinks book. Duties and Responsibilities of Receiving Officer

19. Ideally, receiving department should be located near the delivery door, purchase department and stores to minimize the time and effort in movement of goods into appropriate storage areas. Facilities Motor able road up to the entrance, (8 feet to 10 feet). Platform for unloading delivery trucks. Ramp to facilitate unloading of other delivery vehicles Layout plan Well lighted and adequately ventilated receiving area Interior distribution : Receiving clerks’ office Weighing section Washing section Packaging section Empties outward section Location of Receiving Department

20. Weighing scales: Platform, Counter, Hanging. Hand/Fork lifts trucks, Movable shelves, Trollies and Carts for transporting goods. Bins, Baskets, Waste bins. Tools such as Can opener, Claw hammer, Short bladed knife for opening containers and packages. Thermometer for checking temperature of frozen foods. Marking & Tagging equipment Office equipment: table, file cabinet, calculator, computer, stationery etc Receiving Equipment

21. Documents from the supplier Delivery Notes Invoice/Bills Statements Credit Notes Documents maintained in the Receiving department Goods received book Daily receiving report Meat tags Receiving Documents

22. Quantity inspection: To ensure that the quantity of the goods delivered is in accordance with quantity listed on the purchase order / invoice. This means that all goods will have to be weighed (for example, fresh fruits, vegetables, meat, etc.) or counted (for example , cases, crates, boxes, sacks, etc .) Quality inspection: To ensure that the quality of the goods delivered is in accordance with the quality established in the standard purchase specifications of the establishment . Price inspection: To ensure that prices stated on the invoice/delivery note are in accordance with the prices on the purchase order / invoice . Dispatch to stores/user departments : The goods, having been checked for quantity, quality, and price must be removed from the receiving area to appropriate stores/user departments. For example, perishable food items to the kitchen and all other food items to the stores . Clerical procedures Invoice stamping to acknowledge the receipt of supplies. Recording invoices on goods received book . Receiving Procedure

23. Raising ‘Request for Credit Note’ for shortages, breakages, sub-standard items etc. Filling out meat tags for expensive food items. Forwarding completed paperwork to purchase office. Receiving Procedure

24. After purchasing and receiving beverage products, managers most often must store products until the products are issued to the bar area. Just as purchasing involves more than calling in an order and receiving requires more than putting things in the storeroom , so must the beverage manager be concerned about proper storage and issuing practices . Manager should follow the below practices for the effective running of storage. Access to storage areas should be limited to the fewest possible number of staff members needing this access. Use separate and locked refrigerated storage areas for beverage products . Practice effective inventory control procedures . Storage areas must be effectively designed. Doors and walls must extend to the ceiling ; windows are unnecessary. Use other control practices, if needed eg extra lock, CCTV etc. Storing

25. Beer storage: Beer has the shortest storage life of any alcoholic beverage. Canned and bottled beer may generally be stored at temperatures between 40°F and 70°F (4.5°C and 21°C ). However, all but the strongest beers should not be stored for longer than three to four months . Wine storage : Temperature fluctuation in wine storage areas should be avoided. There is no single best temperature for storing wines . Many wine experts agree that wines are best served at cellar temperature, generally considered to be between 65°F and 70°F (18°C and 21°C ) and 3°C to 5°C respectively for red and white wine. Spirits Storage: In general, spirits may be stored for several years at common dry storage temperatures between 50o F and 70o F (10o C and 21o C). Bottles should be stored upright with their labels facing out for ease of taking inventory. Spirits storage areas should be kept clean and secure . Other Product Storage: In addition to dry storage areas for bar supplies such as extra glassware, carbonated beverages, napkins, straws and the like, bars most often will require additional refrigerator and freezer storage areas. Storage for refrigerated items must include adequate space. Storing

26. Issuing is the process of moving products from storage rooms to drink production and service areas. The correct quantity of products must be issued to meet estimated guest demand. This process must be carefully controlled to minimize product misuse and so managers can match issues of items with the amount of revenues they should produce. Issuing

27. Position Title : F&B Cost Controller Reports To: Hotel Financial Controller (FC) / F&B Manager Position Summary: As a Food and Beverage cost controller, you are primarily responsible for calculating costs of food and beverage items and also responsible for the short and long-term planning of the f&B controlling and pricing aspects . Duties and Responsibilities : Able to effectively control the Food & Beverage Cost . Control the Food and Beverage outlets in terms of wastage, pilferage and efficiency . Prepare variance analysis for food & beverage and communicating with relevant parties . Update and maintain receipts into the systems. Check and verify voids in the POS systems . Check and verify discounts on the POS systems . Check and verify any happy hours discounts . Check and verify all complimentary sales in POS systems . Duties and Responsibilities of F&B Controller

28. Check and verify all staff meals and staff discounts . Check and verify all Package meals . Check and verify all settlements done on the POS system . Check and cross verify if all sales have been transferred correctly to the Property Management systems (PMS ). Check and verify for any lost postings . Check the cost of sales in all F&B outlets and ensure that the costs are within budget . Check the menu pricing on the POS systems and ensure the correct prices are loaded . Check the restaurant and bar checks on daily . Check the complimentary and confirm that all are approved. Duties and Responsibilities of F&B Controller

29. Cost is defined as the expense incurred for goods or services when the goods are consumed or the services rendered . Explanation: In the context of F&B operations, the cost of foods and beverages is incurred when they are consumed, whether sold or thrown away (contamination) or stolen ; the cost of labour is incurred when services are rendered, whether the person rendering the services is paid at that point or at a later stage Hotel Food and Beverage Cost .

30. Material costs This refers to three principal costs: food costs, beverage costs, and the cost of sundry sales such as cigarettes and tobaccos . Material means the substance from which product is made is known as material . it may be raw or a manufactured state. It can be direct as well as indirect. Food cost consists of the cost of food consumed, less the cost of staff meals. The formula for the calculation of food cost is therefore : OS + (P – SM) – CS = FOOD COST Where: OS = opening stock of materials; P = cost of purchases; SM = cost of staff meals ; CS = closing stock of materials. Elements of Cost

31. Classification of Costs Fixed costs: These are costs which remain fixed irrespective of the volume of sales, for example, rent, rates, insurance, depreciation, and managerial and supervisory salaries . Semi-fixed costs: These are costs which move in sympathy with, but not in direct proportion to the volume of sales. For example, fuel costs, electricity, telephone, laundry. Variable costs: These are costs which vary in direct proportion to the sales/output of the establishment. They increase or decrease in the same proportions in which the output increase or decreases. For example, cost of food, beverages and cigarettes and tobaccos By Nature By Behavior Material cost Fixed costs Labor costs Semi- Fixed costs Overhead costs Variable costs