Unit 1 food cost controls
- 1. UNIT-1 FOOD COST CONTROL PREPARED BY: MR HARRY GEORGE ASSISTANT PROFESSOR, ATAL BIHARI VAJPAYEE UNIVERSITY, BILASPUR, C.G
- 2. FOOD COST CONTROL-FCC It can be defined as guidance and regulation of cost of operations. Undertaking to guide and regulate cost needs to ensure that they are in accordance of the predetermined objectives of the business. Guidance and regulation of cost are set as per expressed in the policy statements and budget of undertaking.
- 3. FCC MEANS… You have to stick to your predetermined standards, Set standards appropriate to your market before you buy, prepare and sell food. Cost control procedure.
- 4. WHAT IS FOOD COST? Cost of food cooked + Wastage + Spoilage + Shrinkage/Pilfirage
- 5. WHAT IS NOT FCC? Bringing down the cost at the expense of Quality and guest satisfaction. Attitude: Golden Goose.
- 6. WHY SHOULD YOU CONTROL FOOD COST? Rs 1 saved = Rs 10 sales Add straight to the bottom line Competitive World
- 7. 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.
- 8. HOW DO YOU CONTROL COST? 2. Spoilage Better Storage Facilities Better kitchen design Stock Management
- 9. 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
- 10. HOW DO YOU CONTROL COST? 4. Cost of food cooked Planning the quantity Ensuring the quality.
- 11. OBJECTIVE To analyse 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:-
- 12. FACTORS AFFECTINGTHE PERCENTAGE OF FOOD COST-HURDLES Food purchasing Menu planning Methods of pricing Culinary skills Service skills Avoiding wastage
- 13. PROBLEMS OF F&B INDUSTRY Perishability of the products Unpredictability of volume of business Unpredictability of menu mix Short cycle of catering operation Departmentalization
- 14. PHASE OF CONTROL PROCEDURE Planning Operational Control after the event.
- 15. CONT…
- 16. Phases of Control Planning Financial Marketing Catering Purchasin g Receiving Storing Issuing Production Sales Reporting Assessment Operation ControlAfter the Event Correction
- 17. FINANCIAL PLANNING Budget-Whole organisation and single unit. Total Revenue Expenditure Borrowing Profit Shares
- 18. MARKETING Segment Clientele Turnover Market share Average spending power Choice Trends Advertisement Promotions
- 19. CATERING Type of customer Type of menu Beverage provision necessary for operation Food quality standard Method of pricing Type and quality of service. Décor and comfort Type and style of table and chairs
- 20. OPERATIONS Purchasing Receiving Storing Issuing Production control Sales control
- 21. MANAGEMENT CONTROL AFTER THE EVENT F&B cost reporting Assessment Correction