How to Reduce Bakery Waste

Memo
Date:
To:
From:

Subject:

May 6, 2013
Connie Inukai, Professor of Technical Writing
University of Maryland Eastern Shore at the Universities at Shady Grove
Kyle Bissett
Sharon Moore
Yongkyoung Park
Sakura Shu
Synergy Restaurant Consulting
9630 Gudelsky Drive
Rockville, MD 20850
Proposal for How Cost Control Can Reduce Waste in Bakery Operations

Attached is the proposal from our restaurant consulting company, “How Cost Control Can
Reduce Waste in Bakery Operations.” Kyle, Sharon, Yong and I have formed Synergy
Restaurant Consulting, which focuses on providing technical and efficient ideas to food service
operations with the goal of helping those operations to increase their bottom line performances.
We researched different methods of reducing waste in bakery operations. In the attached
proposal, you will find how staff training, menu design, industry technologies, and managerial
systematic approach can increase efficiency in bakery operations and help reduce waste
production.
On the basis of our research, we suggest that a combination of these methods will be the most
resourceful way to increase operations’ performances. We greatly appreciate the opportunity to
present you with our research and we forward from your feedback and hope for the chance to
work with you in the future.
If you have any questions, please contact us anytime at 123-456-7890. Again, thank you very
much for the opportunity and we hope to hear from you soon.

How Cost Control Can Reduce Waste
in
Bakery Operations

Prepared by Synergy Restaurant Consulting
9630 Gudelsky Drive
Rockville, MD 20850
123-456-7890
www.synergyconsulting.com
Kyle Bissett
Sharon Moore
Yong Park
Sakura Shu

2

How Cost Control Can Reduce Waste in Bakery Operations
Submitted on May 7th, 2013

Kyle Bissett
Sharon Moore
Yong Park
Sakura Shu

3

ABSTRACT
“How Cost Control Can Reduce Waste in Bakery Operations”
Prepared by: Kyle Bissett
Sharon Moore
Yong Park
Sakura Shu
In April 2013, Connie Inukai, English Professor at the University of Maryland Eastern Shore at
the Universities at Shady Grove, asked four students in her technical writing class to do research
on how bakery operations can cut cost and reduce waste through cost control.
To perform this research, the students looked into several areas in the baking industry that
management could exercise control, keep waste to a minimum, and utilize resources as
efficiently as possible. These areas included training, the systematic approach to cost control,
menu design, and tools and utensils.
The students have discovered that cost control involves much more than cutting cost and
reducing waste. It is an on-going strategic plan that involves the vision of an operation’s
success, monthly and annual financial goals, and daily evaluation of productivity. It is also one
of the most important elements necessary for an operation to compete in the marketplace
effectively.
The students recommend that every bakery operation, regardless of its size or method of service,
should have a cost control system in place. Every decision made is related to an operation’s
financial success. Therefore, owners and managers need to regularly access and review
information about the expenses incurred and the revenues received. In addition, since technology
is changing every aspect of the baking industry, management should be aware of the various
software and computer programs that are readily available for their use and benefits.

Keywords: cost control, bakery operations, waste reduction, systematic approach, productivity

4

Table of Contents
Abstract ...........................................................................................................................................4
List of Illustrations.........................................................................................................................6
Executive Summary .......................................................................................................................7
Internal Hand-on Training to Enhance the Cost Control ..........................................................8
Methods ........................................................................................................................................8
Results ........................................................................................................................................10
Conclusions ................................................................................................................................11
Systematic Approach ...................................................................................................................12
Methods ......................................................................................................................................12
Results ........................................................................................................................................13
Conclusions ................................................................................................................................14
Designing Bakery Menu to Enforce Cost Control ....................................................................15
Methods ......................................................................................................................................16
Results ........................................................................................................................................17
Conclusions ................................................................................................................................18
Tools and Equipment to Control Cost .......................................................................................19
Methods ......................................................................................................................................19
Results ........................................................................................................................................20
Conclusions ................................................................................................................................20
Appendixes....................................................................................................................................22

5

List of Illustrations
Figures
Figure 1

Five Steps of Training Cycle ...................................................................................8

Figure 2

Steps of Training ......................................................................................................9

Figure 3

An Example of Bakery Menu ................................................................................15

Figure 4

Menu Engineering Chart ........................................................................................18

Tables
Table 1

Process of Systematic Approach ............................................................................12

6

Executive Summary
Connie Inukai, the English professor at University of Maryland Eastern Shore at the Universities
at Shady Grove, asks four students in her technical writing class to research the methods cutting
waste in bakery operations and reduce food cost percentages. In order to cut costs and waste
through training, one would have to hire employees with previous bakers’ experience.
The systematic approach to cost control can cut costs and waste by reducing the space in work
area. For example, the preparation table is located between the walk-in cooler and the oven,
which eliminates footstep and time. Another approach is time management in terms of how each
employee is scheduled efficiently based on previous sales history.
In order to cut costs and waste through menu design, management may choose menu items that
are complementary to another based on the need of the same ingredients. Another useful method
would be to format the menu in such a way that it gives the customer optimal choices as well as
touching on the focal points the owners choose to accentuate.
An efficient use of tools and utensils would include baking goods of a similar nature at the same
time. For example, baking cakes and cupcakes in the same batch reduce the time that the cakes
are baking in the oven, and therefore reduce utility costs. Another effective tool is the use of the
CakeBoss software which allows the bakery to configure and calculate recipes, convert yields,
print orders and shopping lists, and manage accounts receivable and payable reports.
From their research, the students concluded that the four most important aspects of cutting cots
and reducing wastes in a bakery are effective training, systematic approach, creative menu
designs, and strategic use of tools and utensils.
In order to complete this research, the students looked at:
o Various local bakeries
o Various restaurants’ point-of-sale systems
o Kitchen layout
o Reduction of waste through the production
Based on research, the students recommend all four methods to achieve profitable bakery
operations. The ability to incorporate all of the aforementioned methods will result in the most
financially efficient food service businesses.

7

Internal Hand-on Training to Enhance the Cost Control
As with many other industries, cost control is a crucial factor for a bakery business.
Employees can be taught in cost control skills through training. The development of internal
hands-on training for a business can reduce the cost of planning a training program and can be
optimized for its unique situations. Thus, developing the most comprehensive internal training
plan is crucial for a bakery business. Based on research, the usage of the training cycle is the best
cost control training approach.
Methods
The training cycle is the series of steps or stages that comprise a complete training program.

Figure 1. Five Steps of the Training Cycle.

o Define the needs of training
All of the necessities and purposes of training must be addressed to achieve the
best results. Some of the most crucial training needs are:


Improving morale of employees



Requiring less supervision
8



Lowering the occurrences of accidents



Providing a chance for promotion



Increasing productivity

o Develop internal training program
Once training needs have been identified, the next stage is to develop the actual
training program. It should be aimed to ensure that this systematic approach is
complied with the training needs. This developed training program should be
consistent and updated when required.
o Conducted the training
Training should be led by experienced and skilled facilitators such as executive
chef for the kitchen or the manager for the front. It is essential that training is
regarded as a type of reward and valuable experience. Also, training facilitators
need to understand and cater to different learning and communication styles.
Training can also be applied to improve skills performance.

Figure 2. Steps of Training

9

o Monitor the training
This stage is to ensure that all learning outcomes are applied and reinforced in
practice within a mistake-permissible environment. It is also the stage to monitor
the development of individual learners and review their progress.
o Evaluate the training
This stage deals with the collection of information on the result of the training. It
is important to know the extent to which the training program has succeeded,
which can be measured thorough established evaluating methods such as a written
test or practical demonstrations by the trainee.
Results
o Through research on defining the needs of training, it confirms that training improves the
employees’ morale by helping them to acquire job security and satisfaction. Well-trained
employees will need less supervision, additional training, as well as a lower chance of
mistakes. Also, employees become more eligible for promotion through training because
their skill set increases exponentially. Practical applications in real life encourages
employees to be even more productive.
o Development of internal training programs becomes more efficient once the needs of the
training are identified. Training programs that are customized, comprehensive, and yet
easy to understand can be produced.
o If the training is conducted with the notion of the different learning levels and styles of
the trainees, the employees become more engaged with the contents of the training which
enhance the result of the training. Also, by paying close attention to the individuality of

10

employees, social relationships may develop between the management and the staff
members, leading to a cooperative, cohesive unit of operation.
o Monitoring the applied training provides crucial opportunities to observe the effects of
the training, and suit to practical needs.
o The evaluation stage helps those who evaluate learning program to make sure whether
the current training satisfies the needs of training or needs any improvements.
Conclusions
As stated above, training needs must be first identified for the program in order to be
successful. The result will always be beneficial to the business. A poorly trained employee will
eventually lead to poor performance, which would ultimately result in costly mistakes. Therefore
it is critical that the business invests in a proper training program to ensure that it is worthwhile
for their business to teach the employees. Through research on the internal training program for
the bakery industry, we found that the one of most effective training methods is through the
systematic approach of the training cycle.

11

Systematic Approach
Cost Control is an on-going strategic plan that involves the vision of an operation’s
success, monthly and annual financial goals, and the daily evaluation of productivity. It involves
much more than managing waste and is one of several important elements necessary for an
operation to be able to compete in the marketplace effectively. Control means to exercise
authority over and restrain. Every foodservice operation, regardless of its size or method of
service, should have a cost control system in place. Owners and managers need together and
review information regularly about the expenses incurred and the revenues received. They need
to compare the actual results to established standards and budget guidelines for purposes of
analysis. No one can possible see everything that can cause costs to be out of line. Hence, cost
control is vital and can be the difference in the success or failure of a business.
PLAN
Vision & Mission

ORGANIZE
Organization Design

LEAD
Leadership

CONTROL
System/Processes

Strategize

Culture

Decision Making

Strategic Human
Resources

Goals & Objectives

Social Networks

Communications
Groups/Teams
Motivation

Table 1. Process of Systematic Approach

Methods
A large part of cost control is to keep waste to a minimum and to utilize resources as
efficiently as possible. This includes and is not limited to the purpose of cost control, which is:
Provide management with the information necessary to make day-to-day
operational decisions

12

Monitor the efficiency of individuals and departments
Inform management of what expenses are being incurred, what incomes are being
received, and whether they are within standards or budgets
Prevent fraud and theft by employees, guests, and purveyors
Be the basis for knowing where the business is going, not for discovering where it
has been
Emphasize prevention and not correction
Be proactive and not reactive
Maximize profit and minimize loss
Results
After all the methods mentioned above are accomplished, managers will have an
effective cost control system in place. They must remember that cost control is a part of the
entire management process and can accomplish this by having a systems approach or a
documented plan with procedures for how to handle each operational element. The systematic
approach of planning, organizing, leading, and controlling will improve the cost control strategy.
Planning involves designing a menu and establishing your food and labor cost standards. It gives
you a clear picture of what it is you want to accomplish. Organizing focuses on establishing the
procedures for accomplishing your objectives. Leading is using the information gathered to
guide the activities and efforts of your employees. Controlling measures the actual results and
compares them to your plan. All the results ensure that a cost control system is effective and
valuable.

13

Conclusions
Cost Control encompasses all areas of a business, from purchasing and checking
deliveries, bookkeeping and cooking, to making bank deposits and paying bills. It is an on-going
process and requires the complete cooperation and participation of all employees for success.
Therefore, as managers, it is our responsibility to establish, support, monitor, and enforce an
effective cost control system. We have to lead by example and set the standards for employees to
follow. The success of a business does not happen by chance, but as the result of some very
careful advanced planning, organizing, leading, and controlling. Every decision we make is a
financial one and has a significant impact on our success or failure. This is a good reason we
must have a cost control system as part of our overall and daily business plan.

14

Designing Bakery Menu to Enforce Cost Control
When other factors such as purchasing, receiving, storing, issuing, and production are all
in management’s control, menu format and product pricing may be the only factors that affect a
bakery’s profit margins.
The menu is an effective way for the managers to communicate with guests. In many
bakeries, menus are separated based on categories: cakes, pastry, cookies, bread, etc. Regardless
of the menu format, the menu is an excellent way to build sales and communicate any special
within the operation. Therefore, it is necessary to design menu that promotes what bakery owners
want to sell.

Figure 3. An Example of Bakery Menu

15

Methods
When designing a bakery menu, managers need to consider the appropriate menu format
and item selections that are appropriate to the target market. After the menu is finalized, it is
important to keep an accurate sales history and conduct sales analysis.
In a typical food service operation, menu format is designed in the following categories:
o Standard- printed menu that are recited by the staff.
o Daily- menu that changes everyday.
o Cycle- menu in effect for a specific period of time.
As important as the format is to a food service operation, the menu selection is just as
important. The options an operation select to put on a menu has a dramatic effect on the menu
cost and waste. To elaborate, each ingredient an operation purchase for production should have
multiple usages and purposes. For example, when a bakery imports fresh fruit, not only can the
kitchen staff incorporate it into fresh fruit cakes and tarts, the “mediocre quality” of the fruit can
be used as jams and sauces and reduce waste.
Menu engineering is defined as the study of technique that displays a list of product or
service offerings for consumer choice. The goal for menu engineering is to increase profit
margins by identifying the most popular and least popular items in a food service establishment.
It is almost certain that every bakery establishment has a few best sellers and other items that are
not as popular. Therefore, the goal of menu engineering is to determine which products are
generating more profits and which products the bakery should get rid of. In order to determine
the menu mix, the bakery operation must first figure out the contribution margin and the number
of each items sold.
16

o Contribution margin is determined by subtracting the items’ cost from selling price.
o Number of items sold is derived from accurate sales history.
Results
When determining the appropriate format for a bakery menu, it is important that the
menu design is more flexible than restaurant establishments. Unlike restaurant, bakeries and cafe
generally use a combination of all three formats; there is a printed menu behind of main service
table and for guests to take home, a daily menu that changes with daily and seasonal offering,
and also a cycle menu when the bakery wants to market a “Friday special”. Therefore, it is easier
for a bakery to make adjustments to its original. The operation will feature an item as a daily or
monthly special. And once the item as gain popularity, it can be adjusted into a permanent menu.
When choosing items to sell in a bakery operation, it is important to choose items with
ingredients that are least perishable and complementary to other items on the menu. During
production, waste can also be eliminated if the kitchen staff turns “waste” into a usable “menu
item”. For instance, when producing a chocolate cake, the cake tops and crumbs can be used to
make cake-pops, a new, trendy item that is popular in younger age group customers.
Menu engineering is the technique that food service operation use to determine which
items stays and leaves the menu. It is important that an accurate sales history is kept at all times
and the calculation of food cost is accurate. To represent the calculations in matrix, menu items
are on a graph.

17

Figure 4. Menu Engineering Chart

The contribution margin (x-axis) and number of items (y-axis) are used to determine the
placement of menu items. When an operation conducts sales analysis, the menu items are placed
on the menu mix chart to determine its status. Depending on the position of an item, management
may need to make decision to improve its status, such as using different ingredients to cut food
cost or to simply cut it off the menu.
Conclusion
Menu design is a crucial element in determining the success of a food service operation.
The format, item selection, and sales analysis are all useful tool in promoting the products in the
restaurant and helping reduce waste in the operation. It is our job to inform restaurant managers
that we must turn the potential food waste to actual profit.

18

Tools and Equipment to Control Cost
As with most businesses, cost control is a huge factor that takes place in the success of
the business. Equipment, tools, and software can be intergraded into ones bakery to help the
bakery carry out daily functions and operations. This is proven to be true because of how labor
intensive the jobs are, the long shifts, order times, and customer service. Therefore, by upgrading
our systems and installing programs will help us understand what customers want. And
purchasing more modernized tools will make a noticeable difference in our daily operations.
These include cutting costs and turning a higher profit.
Methods
Acquiring tools and softwares will allow our customer to design exactly what they want
and allow the staff to create a product that meets their specifications.
These tools include:
Cake boss pro
o A software which allows the baker to do everything from a computer, except
making the actual cake. It converts yields, cost out recipes, prints shopping lists
and invoices, tells one the exact cost of cake, track expenses, calculate profit and
run reports to see exactly where revenue is coming from.
Wedding cake design pro
o This directly designed for wedding cakes it allows the baker and customer to sit
down with one another and create the cake the customer wants. The program has
hundreds of color schemes and design patterns to choose from. They can decide

19

on number of tiers, shape, size and layers. The colors, designs and floral prints
can be mixed and matched until the desired product is achieved.
KopyKake’s
o

A company with a product line specific for the baker, they offer numerous tools
to help improve efficiency. They make tools such as printers, projectors, stencils,
edible ink cartridges for printers, edible ink markers and pens for drawing or
tracing. They have paper you feed through the printer which will print a picture to
be inserted on top of the cake and it is a 100% edible.

We can also set up a “build your own” template on our website to give our customers and
idea of what we are capable of.
Results
Once the employees have finished proper training and understand the systematic flow of
the new tools and software, they can start using them in their everyday operations. From there,
we will meet with the customer, gather the exact specifications, and create a product at cheapest
cost to us regarding ingredients and labor hours. Using these tools will cut down on both
financial and economic costs. Reducing the time spent on free hand design of the product will
reduce the labor wage costs and the ease of software design will cut down on the economics
costs. Using these tools will also cut down on the amount of “do-over” caused by a simple
mistake in the design and implement phase.
Conclusion
Insuring our employees have the proper knowledge of the software and how to
implement it into recipes and actual production itself will greatly benefit a bakery operation.
20

This will also help the employees stay focused and ensure the customers’ exact needs are
fulfilled. Incorporating this software will increase the amount of baked goods sold and increase
production from our organization. In addition, it will offer services that we could not create
without the software, therefore expanding business, increasing production and revenue while
keeping costs down. Through research on the tools and software for the bakery industry, we
found that the most effective ways of cutting costs is through proper training, systematic
approach, creative designs, and efficient equipments.

21

Appendixes
Bakery Reduces Ingredient Waste and Bad Batch Costs by $39,158. Retrieved Apr. 26, 2013,
from http://doranscales.com/success-story/bakery
CakeBoss pricing software, recipes, tutorials, and more for bakers and cake decorators.
(n.d.). CakeBoss pricing software, recipes, tutorials, and more for bakers and cake
decorators. Retrieved May 2, 2013, from http://www.cakeboss.com/
Hine, S., Thilmany, D., Kendall. P., & Smith, K. (Feb. 2003). Employees and Food Safety: Is
Training Important to Food Service Managers. Journal of Extension. Retrieved from
http://www.joe.org/joe/2003february/rb1.php
Kopykake Enterprises (Official Site). (n.d.). Kopykake Enterprises (Official Site). Retrieved May
2, 2013, from http://www.kopykake.com/
Master the Art of Menu Engineering. Retrieved Apr. 26, 2013, from
http://www.nestleprofessional.com/united-states/en/SiteArticles/Pages/Master-the-Art-ofMenu-Engineering.aspx
n.d. Training & Coaching Advices. The Training Cycle. Retrieved
fromhttp://www.thetrainingcycle.co.uk/
Training cycle. (n.d.). In Businessdictionary.com. Retrieved from
http://www.businessdictionary.com/definition/training-cycle.html
Wedding Cake Design Pro Software from Topplestone, LLC. (n.d.). Wedding Cake Design Pro
Software from Topplestone, LLC. Retrieved May 2, 2013, from
http://www.weddingcakedesignpro.com/
Wilke, J. (Jul 24, 2006). The importance of employee training. Jacksonville Business Journal.
Retrieved from http://www.bizjournals.com/jacksonville/stories/2006/07/24/smallb2.html
22

How to Reduce Bakery Waste

More Related Content

What's hot (20)

Similar to How to Reduce Bakery Waste (20)

More from sakurashu28 (13)

Recently uploaded (20)

How to Reduce Bakery Waste