Gilbert Noussitou 2010 L2-1
KITCHEN MANAGEMENTBLOCK A - PC-1
Gilbert Noussitou 2010 L2-2
Incoming Inventory Inventory Control
Inventory control is important in controlling food costs
Standards & procedures for Receiving & Storing Inventory must be developed for efficiency
The cost of food is one of the two highest costsOften in the thousands of dollars
Gilbert Noussitou 2010 L2-3
Incoming Inventory Inventory Control
• Inventory “notebook” (manual system) – time consuming– loads of paperwork– hard to keep up-to-date therefore often not accurate
• Daily inventory reports:– Separated in two broad categories:
• stores (storage)• directs (used the same day)
– further separated into a number of categories: example: meat, seafood, produce dairy, etc
– purchases are then compared with sales of items in same category: meat, seafood, produce, etc.
Gilbert Noussitou 2010 L2-4
Outgoing Inventory Inventory Control
• Requisitions:
– keep track of transfers form storage to production
– If used, they must be precise and consistent
– Like computers, only as good as the information you enter
• Pricing requisitions:
– A good tool to track cost of food used
– Must be precise
Food is money, you must know where it goes!!
Gilbert Noussitou 2010 L2-5
Inventory Record Keeping Inventory Control
• Perpetual inventory:– Like a bank account: food in = food out– Expensive to maintain (labour intense)– Sometimes used only for expensive items: (the 80/20 rule)
• Physical Inventory:– Taken periodically– Sometimes used to verify perpetual inventory– Opening inventory vs. closing inventory
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The 80/20 Rule80% of consequences stem from 20% of the causes
20% 80%
Food Usage Food Cost
=
Control those 20%!!!
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• Computerized Inventory Control– Can be time consuming– If set up properly and used properly, these
systems can supply very good and detailed info (best price paid, price comparison between suppliers, advance demand forecast, constant inventory, waste (or pilferage) control, etc.
Inventory Record KeepingInventory Control
Gilbert Noussitou 2010 L2-8
• The last price paid: – simple, most common
• The F.I.F.O. method: – very accurate if stock is rotated properly.
Each item is costed at the real price paid.
• The average price method: – labor intense– rarely used
Pricing InventoryInventory Control
Gilbert Noussitou 2010 L2-9
1. Calculate average inventory:Opening inventory + closing inventory = Average inventory
2
2. Calculate cost of food:Opening inventory + Purchases – Closing inventory = Cost
3. Calculate turnover rate:Cost of food
Average inventory
Inventory TurnoverInventory Control
•Inventory is money; money must be working!•No hard rules: usually two or three times/month
= Turnover Rate
Gilbert Noussitou 2010 L2-10
Basic Restaurant Costs
WT up-FR FR
Food costs (cost of sales) 30% 26% 35%
Staff costs (labour) 34% 30% 20%
Operating Expenses (cost of doing bus) 16% 19% 23%
Occupancy costs (rent, insurance, etc.) 8% 10% 12%
Amortization 4% 4% 4%
Profit 8% 11% 6%
SALES (always) 100% 100% 100%
Gilbert Noussitou 2010 L2-11
Basic Restaurant Costs
• Fixed Costs: not related to sales– Non-controllable
• Variable costs: directly related to sales– Controllable
– Most staff costs & food costs
• Semi variable: not an official category– Management, salaried employees, contracts etc.
Gilbert Noussitou 2010 L2-12
Breakeven Point
Food costs + labour costs + overhead = SALES
No profits = survival but working for nothing
Profit = Sales – (F.C. + L.C. + Overhead)
Gilbert Noussitou 2010 L2-13
Cost Percentage
• Should be fairly constant• Understand the difference between the:
– Standard food cost– Actual food cost
(food, labour or others)
Cost% = cost
salesx 100 or portion
wholex 100
Gilbert Noussitou 2010 L2-14
Breakeven Analysis
Breakeven point80,000
40,000
20,000
60,000
loss
profit
20,000 40,000 60,000 80,000 100,000
fixed costtotal cost
sales
variable cost
sales
cost
s
Gilbert Noussitou 2010 L2-15
Breakeven PointExample
Fixed costs $ 24,000
Variable cost $ 60,000
Sales $100,000
1-
$24,000 $60,000
$100,000
Breakeven point =
Gilbert Noussitou 2010 L2-16
Interpreting Cost Percentages
• Allow for comparison with:– Other operations
– Different periods
– Budget guidelines
• Rule of Thumb:
F.C% + L.C. = max 80%
Gilbert Noussitou 2010 L2-17
Using Cost Percentages
Calculate the cost of food from sale price
= cost factor (f)100 (whole)
% (ptn)
Calculate the menu price (sale price)
Food cost = sale price
cost factor
cost
cost %= S.P. or 100
%= S.P.Cost x
Food cost = sale price x food cost %
Gilbert Noussitou 2010 L2-18
Sales Ratios & Other Statistics
• Dollar sales• Number of customers during a given period• Seat turnover (busy or slow)• Number of items sold• Identify items that are not moving• Dollar sale per cover (average check)• Dollar sale per seat• Dollar sale per wait staff (effectiveness)• Number of customers per wait staff (or staff period)• Dollar sale per cook (effectiveness of menu)
(scheduling etc)
Gilbert Noussitou 2010 L2-19
Sales Ratios & Other Statisticsfor Menu Analysis
• In menu analysis the most common statistic is the number of times each item is sold within a given period:
• Similar to that is the menu mix or sales mix • It is expressed in % and referred to as item popularity• Item popularity is the number of sales of each item
compare to the total of items sold
# of items sold
total items soldX 100 = menu mix % or sale mix %
Very important information to measure profitability of each item!! (Most statistics are obtained from P.O.S.)
Gilbert Noussitou 2010 L2-20
Yield & Cost Calculations
1. Standard Product Specifications
2. Standard Recipes
3. Standard Yields:– Ratio of useable product to total weight before processing
4. Standard Portions– Count – ladle – scoop – bowl – weigh – etc.
5. Standard Portion Cost– Resulting from standard recipes and standard portions!!!!
There are five main standards related to cost control
Gilbert Noussitou 2010 L2-21
Yield & Cost Calculations
• are an accurate reflection of desired results based on market expectations
• encouraging excellence• are reasonable & challenging• are specific & measurable• allow slight flexibility to encourage creativity
& challenge• include feed back (in control system)
Effective Standards:
Gilbert Noussitou 2010 L2-22
Control Point Flow Chart
Menu Planning
Purchasing
Receiving
Storing
Issuing
Preparing
Cooking
Holding
Serving
☺ Guest Satisfaction & Profit Target☺
Control the processe
s,
not the end result!!
!
Gilbert Noussitou 2010 L2-23
Yield & Cost Calculations
Edible Portion (EP)As Purchased (AP)
x 100Yield % =
Edible Portion Size = AP Portion Size
Yield %
100 (whole) (AP)
% (ptn) (EP)Yield Factor =
or Edible Portion Size = AP Portion Size x Factor
Yield percentage or yield factor is the ratio of useable product (EP) to the total weight (AP) before processing
Gilbert Noussitou 2010 L2-24
Yield & Cost Calculations
Edible Portion Cost = AP (Raw) Portion Cost
Cost %
100 (whole) (AP)
% (ptn) (EP)Cost Factor =
or
100
%Edible Portion Cost = AP (Raw) Portion Cost x
Edible Portion Cost = AP (Raw) Portion Cost x Cost Factor
Edible Unit Cost = AP (Raw) Unit Cost x Cost Factor
Gilbert Noussitou 2010 L2-25
Yield Test
• Peeling, trimming, boning etc. must be consistent
• High temperatures during cooking significantly increase shrinkage
Everything you buy must be sold sold!!
Edible Portion can be raw or cooked
Gilbert Noussitou 2010 L2-26
Meat Cutting Yield Test
Portion Size Factor: 0.27
factorPortion
Size cost
EPtotal value
value / kg
yield %
weightbreakdown
1.81 0.27150g $5.74$38.25
$0.68
$2.44$49.73
$0.800
$9.75-----
34%4%
10%52%
850g100g250g
1300g
Fat / gristleWasteTrimmingsEdible meat
100%2,500g250g
TOTALPtn Size
Cost
kg ptncost/kg%
Total Cost: $52.85
Date: ___________Grade: AAA
Unit Cost: $21.14
Pieces: One
Weigh: 2.5 kg
Item: Beef Tenderloin
Gilbert Noussitou 2010 L2-27
Quantity cooked: One Time: 2 hours and 30 minutes Temperature: 175C
Breakdown Weight Ratio toTotal Weight
ValuePer Kg
TotalValue
Cost ofUsable
kg
Portion Size Cost
Cost FactorPer
Kg Portion
Original WeightTrimmed WeightLoss in TrimmingCooked WeightLoss in CookingBones and TrimSalable Weight
3750 g2850 g
900 g2350 g
500 g750 g
1600 g
100%76.0%
24%62.67%13.33%
20.0%43.0%
$4.75 $17.81$17.81
0$17.81
00
$17.81 $11.13 125 g $1.39 2.3432 0.2926
Item: Leg of Lamb Portion: 125 g Portion Cost Factor: 0.2926
Cooking Loss Test
Gilbert Noussitou 2010 L2-28
MenuPlanning
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Gilbert Noussitou 2010 L2-30
Menu Planning
“You don’t build it
for yourself, you
know what the people
want and you build it for
them”
Gilbert Noussitou 2010 L2-31
Menu Planning
• By definition, a menu is a list of the dishes that will constitute a meal.– It can be a list of all the dishes that will
compose a meal of which it is the program.– It can be a list of all items available for sale
regardless of their purpose or contents• Its harmony and progression should bring the
guest maximum pleasure and satisfaction
Gilbert Noussitou 2010 L2-32
Menu Planning
• A menu is like the business card of the restaurant
• The menu is the heart of the business• Everything else depends on the menu• The purpose of the Menu is to:
– identify for the consumer the food and beverages the operation offers
– create customer enthusiasm– increase sales
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Types of Menus
• Static Menu– Patrons are offered the same foods each day
• Cycle Menu– Developed for a specific period of time
• Market Menu– Based upon product availability during a specific
period or season
• Hybrid Menu– A blend of static with a cycle or a market menu
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Menu Formats
• Static menus: – standardized, stocks are constant– systems are set & organized, almost perfect– can be boring
• Cycle menus: – practical but can be monotonous
• À la Carte: – individually priced items
• Table d’Hôte or “Prix Fixe”: – offers a complete meal at a set price
• Other menus:– hybrid menus, market menus, semi “á la carte”
Gilbert Noussitou 2010 L2-35
Menu Planning: Considerations
• Know your customer• The type of restaurant & its classification• The season and/or climate• Know local products/markets/cuisine/trends• The budget and food cost guidelines • The potential number of guests• The facilities available• …….and your wishes if at all possible
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Menu Planning: Choosing the Dishes
• Go from the Lightest to the most nutritious and finish with the finest
• Contrast: alternate white and red meats, white & brown sauces, lean & fat fish, soft and firm textures etc…..
• Respect the basics of nutrition: major groups of food, balance of macronutrients etc.
• Avoid repetitions: names, garnishes, cooking methods etc.
• Select products that people will recognize and enjoy
• Avoid mistakes due to personal tastes
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Menu Planning: Choosing the Dishes
• The menu should be nutritionally and gastronomically balanced
Balance!
!
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Menu Planning: Writing Menus
• Know the proper meaning and spelling of culinary terms
• Use simple words and meaningful expressions that guests will know and understand
• Customers don't know anything about your food;
explain clearly and briefly what the dish is all about • Include information such as: the cut, the size sometimes,
the cooking method, the sauce, important ingredients & accompaniments, & perhaps the garnish.
Gilbert Noussitou 2010 L2-39
Menu Planning: Writing Menus
• The menu should be comfortable, pleasant to the eye and to the touch (nice paper & other materials)
• Language is a major consideration; easy to read language and font, print size and colour are all important
• Grammar and spelling must be respected
• Use a logical order and reading pattern
• Consider location of profitable items, specials etc.
Gilbert Noussitou 2010 L2-40
Menu Planning: Writing Menus
• The menu is a SELLING TOOL; it will convince the guest to either buy that item or not; come back another day or not
• It can also misinform the guest, which can result in:– an unhappy customer
– a waste of food
– a waste of time
– in all cases, a waste of money
Gilbert Noussitou 2010 L2-41
Menu Planning:Use of Leftovers
• Normal waste is costed and sold
• Abnormal waste is used but not sold
• Proper planning is essential
What is the best way to use leftovers?
THE BEST WAY TO USE LEFT-OVERS IS……
NOT TO HAVE ANY!
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Applying Purchasing Procedures
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Purchasing Procedures
• Buy only if needed: ensures quality & controls stock size!!• Establish and respect par stock• Buy from reputable places (or be ready!) Know your
suppliers and work with them• Rule of thumb: check a minimum of 3 sources • Be clear on delivery needs: date, time, place, other rules• Know your requirements & product specifications: grades,
sizes, origins, fresh, frozen etc…• Be ready to accept (or not to) accept a substitute• Have a system
Gilbert Noussitou 2010 L2-44
Selecting the right supplier
• Supplier’s location (short delivery times).• Supplier’s facilities (efficiency, quality, reliability).• Financial stability (long term relationship and support).• Technical ability and knowledge of staff.• Reasonable price (not necessarily the best) in relation to
quality.• Compatible attitudes (working relationship and trust are
important).• Honesty and fairness (good business practices).• Reciprocal purchasing (potential customer).
Gilbert Noussitou 2010 L2-45
Calculate Food Requirements
• Establish portion sizes of main ingredients• Establish the number of portions required• Calculate the amount of food required• Identify quantity of food on hand• Calculate the amount to purchase
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FOOD ITEM MENU ITEM PORTION SIZE
Shrimp Shrimp cocktail 80 grams (2.82 oz)
Lemon Shrimp cocktail 1 wedge (6/lemon)
Cocktail sauce Shrimp cocktail 60ml (2.11 oz)
Head lettuce Tossed salad ¼ head
Tomato Tossed salad ½ each
Dressing Tossed salad 60 ml (2.11 oz)
P. Rib raw trim rdy Prime rib 500 grams (17.6 oz)
Potato Baked potato 1 each
Green beans Green beans 80 grams (2.82 oz)
Carrots Carrots 80 grams (2.82 oz)
Strawberries Fresh strawb. 100 grams (3.52 oz)
Portion Control Chart
Calculate Food Requirements
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Item Amount Supplier
Needed On Hand
Order A & B Co. Green Prod. Local Supplier
1 2 3 4 5 6 7
Spinach 6 c/s 2 5 cs 4 c/s 2200/cs = 88.00 1485/cs = 59.4 2170/cs = 86.80
Ice.Lettuce 8 c/s 1 cs 7 c/s 1700/cs = 119.0 1675/cs = 117.25 1810/cs = 126.70
Carrots 3-20 # 20 # 2-20# 1470/bg = 29.4 1390/cs = 27.80 1380/bag = 27.60
Cabbage 2 sacks ½ sc 2 sc 1860/sc = 37.2 1800/sc = 36.00 1810/sack = 36.20
Totals 861.40 799.25 842.16
Ordering Chart
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