Food & Beverage Control

8/2/2019 Food & Beverage Control

1/7

Food & Beverage Cost

ControlObjective:We will understand in asummary how and why a food cost controlis required to maintain a cost control and

optimize revenue in an organization.P.S. Note that while studying thischapter keep in mind that the nature

of controls involve a lot of humanintervention and paper-work. Anddoes not run solely on a set ofcomputer programs.


2/7

COST CONTROLCost control alone, is applied to only manufacturingindustries which are cost oriented and rely on bulk sales toattain profits. A 100% profit margin per product may not bethe underlining rule here.

Food Cost Controls or F&B ControlsThis sort of a control measure are more prevalent in cateringindustries and hotels where a variety and bulk of products areproduced in terms of food and beverage. Here the general trend isto have a 100% profit per product. Therefore for the success of thisnature of industry to flourish revenue control & cost control, bothneed to exist.The definition of F&B Cost Control may be defined as the guidanceand regulation of the cost & revenue of operating the cateringactivity.


3/7

Limitations1. This controls can only identify problems and business trends in a process, butcannot prevent problems.2. Constant supervision to ensure effective functioning.3. Management action is required after evaluating the process and finding theoutcome of the evaluation.

Advantages Analysis of income and expenditure. Establishment & maintenance of SOPs and SPS. Sound basis for menu pricing. Prevention of waste. Prevention of fraud. Documented information for management to supervise, analyze and act upon.Disadvantages Perishability of the product. Fluctuation of the volume of business. Fluctuation of the menu-mix. Short cycle of operation. High degree of departmentalization.


4/7

Food & Beverage Control CycleFinancial Policy Marketing Policy

Catering Policy

Purchasing

Receiving

Storing & Issuing

Preparing

Selling

Management Control After The Event

Phase I:Basic

Policy Decisions

by Senior Mgt

Phase II: Day-

to-day

Operational

Control cycle by

Supervisors &

Associates

Phase III:

Control after

the event by

supervisors and

management.


5/7

Financial Policy: It involves setting of a profit targets and planning thewhole financial boundaries within which operations need to run.

Catering Policy: Evolves from the above two policies & defines main objective and methodby which it can be attained through;1. Type of customer 7. Hours of operation.2. Type of menu 8. Beverage provisions required.3. Food qlty. standards.4. Method of buying.5. Type & qlty. of service6. Degree of comfort & decor

Marketing Policy: Helps in identifying broad market, future trends and demandpattern in terms of;1. National Identity2. Customer3. Market Share4. Cover turnover or product turnover5. Profitability6. Avg. spending power7. Product8. Customer satisfaction


6/7

Purchasing:1. Product testing 4. Method of buying.2. Yield testing. 5. Clerical procedures.3. Purchase specificationsReceiving:1. Qty. inspection. 3. Clerical procedures2. Qlty. inspection.Storing & Issuing:1. Stock records. 3. Stock taking.2. Pricing of issues. 4. Chemical procedures.Preparing:1. Volume forecasting.2. Pre Costing.3. Chemical procedures.Selling:1. Checking system.2. Control of cost.3. Clerical procedures.


7/7

Finally in Phase III:1. F&B Cost Reporting.2. Assessment.3. Correction.Requirements or characteristics of a Control System:1. Comprehensive & cover all outlets.2. Cost of maintenance should be in relation to the savings to bemade.3. Easy to operate and understood by all.4. Staff to ensure functioning of the system.5. Information produced to be accurate and up-to-date.

***Find out the 9 points to food controlprocedures***

Documents

Food & Beverage Control