Term paper Of Food & Beverage control On How to reduce the food cost by the controller & what are the causes of higher food SUBMITTED TO:-
MR. DIVOY (LECTURER) SUBMITED BY: -
Raman deep Sandhu CLASS: - M.Sc (HMT) 3rd SECTION:-V8802 ROLL NO:-07
ACKNOWLEDGEMENT The satisfaction that accompanies that the successful completion of any task would be incomplete without the mention of people whose ceaseless cooperation made made it poss possib ible le,, whos whose e cons consta tant nt guid guidan ance ce and and encouragement encouragement crown all efforts with success. We are grateful to our project guide Mr. SANJEEV for the guidance, inspiration and constructive suggestions that helpful us in the preparation of this proj projec ect. t. We also also than thank k our our coll collea eagu gues es who who have have helped in successful completion completion of the project. The Overall Material Of The Project Has Been Collected From The Various Sites And Books. Expl Explan anat atio ion n Are Are Rich Richly ly Illu Illust stra rate ted d With With Rele Releva vant nt Example To Provide Meaningful Results. I Retain The Responsibility Of Any Kind Of Mistakes In Th This Proje roject ct Materi teria al And Look ook Forwa rward To The The Comments And Suggestion from The Teacher Further Improvement Improvement Where Required Once Again I am Short Of Thanks, As I Cherish The Inspiring Ideas, Constant Encouragem gement And Earnest Interest By Our Project guide Mr. SANJEEV
Raman deep sandhu
Certificate This is to certify that this Term Paper entitled “H o w t o reduce the food cost by the controller & what are the causes of higher food costs
embodies the original work done by RAMANDEEP, Student of MSC-III rd Sem in fulfillment of degree of Master in Hotel management to be awarded by Lovely Professional University, Phagwara.
Project In charge: Mr. SANJEEV
A controller is an employee within a company, business or other organization who is responsible at some level for buying or approving the acquisition of goods and services needed by the company. The position responsibilities may be the same as that of a buyer or purchasing agent, or may include wider supervisory or managerial responsibilities. A controller may oversee the acquisition of materials needed for production, general supplies and facilities, equipment. The principal purpose of food and beverage planning and control systems is to avoid excessive costs by reducing waste and other forms of loss to a minimum, without sacrificing the quality or quantity of the food which goes to the customer. The high food cost When the cost of food increases and profit comes down it calls high food cost. Mostly it happens in hotels and restaurant because of some reasons. Profit comes low because of high food cost that is a bad sign for hotel. There are some reasons that cause high food cost. Food Safety Challenges:•
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In general, the risks to food safety fall into two broad categories: Microbiological contamination contamination (eg: bacteria, fungi, viruses or parasites). This category results in most cases in acute symptoms.
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Chemical contaminants, comprising environmental chemicals, veterinary drug residues, heavy metals or other residues unintentionally or accidentally introduced into the food supply during farming, processing, shipping or packing.
Some common reasons for high food cost 1.
of high food cost. Wast Wastag agee: - wastage is the main reason of high Because the wastage of food means loss to the department. Cost is already paid by and wastage will cause high food cost.
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Improper checking of quality and quantity : - improper checking of material at the time of receiving. Sometime raw material received less then in quantity than ordered. And sometime it can be not of the good quality or a substitute material of low price. So it can cause high food cost.
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Wrong Wro ng port p ortion ion : - by serving the wrong portion sometime extra portion provide to the guest at the same price by mistake it causes high food cost in hotels.
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Delay Dela y in i n orders o rders : - when because of any reason sometime order delays to serve to the guest table. Then guest become angry and then we have to give some compliments to guest to handle the situation. That causes higher food cost in hotels.
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Less Les s secur se curity ity : - because of less security such as no CCTV or improper security checking in this cases employee theft in departments and take away the good with them after their shift which cause high food cost.
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Wrong Wron g temperat temp erature ure of walk w alk in : - temperature should be check properly. Because some perishable product is spoiled quickly in wrong temperature like beef and other meat products, sea food etc. which cause of high food cost.
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Over purc purchasi hasing ng: - if material is purchase in bulk and over purchase the material, it can be spoiled or damage. dama ge. That causes higher food cost in hotels.
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Over prep preparat aration ion: - extra prepare of portion of food than need. After serving that particular portion, the remaining portion is useless and cannot serve to another guest. That also causes high food cost in hotel.
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Employee Empl oyee meals m eals not charge ch arged d: - in hotel mostly chefs have their meal in kitchen and from the dishes that they prepared. That causes higher food cost in hotels.
10. SOP:
- Some times in kitchen standard recipe is not used by the chefs and they use extra material than required for dish. And it is also caused higher food cost in hotels.
11. Damage
raw ra w material materia l during purchasing :-
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If date is expire.
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If packaging of food is damaged. Such as improper wrapped/ packaging and seals.
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Purchase torn packaging of meat & poultry.
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Mix of meat, poultry and sea food with other food item during handling food supplies.
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Delay in refrigerate after purchase.
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If quality of food is not good.
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Damage raw material during storage:•
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If cross contamination during storage by contact contact between raw and cooked foods. If raw meats, poultry and fish contact with other food item. If the storage temperature is inaccurate. Delay in cook and freeze of fresh poultry, fish, ground meats, beef, veal, lamb, or pork. If packaging damage during storage. If food item or raw material not use under its use by date. If FIFO (first in first out) is not applicable during storage. Damage raw material during preparation:-
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Coughing or sneezing, touching raw meat, poultry, fish or eggs, using tobacco, eating or drinking, handling soiled utensils, working with any chemicals and after changing food tasks such as working with vegetables and then switching to raw meats.
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If hand is not wash. If utensils is not clean or wash after cutting raw meat, poultry and seafood. Mixing of meat, poultry and seafood with the raw material.
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If raw vegetable not wash before preparation.
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If food not in appropriate temperature.
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If dirty utensils use for preparation.
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If used cooking utensils use for the preparation.
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If kitchen area is dirty or not clean.
14. Damage
raw material mat erial during serving :-
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If plates, dishes or serving equipment is dirty.
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If hand is dirty during service of food.
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If used serving utensils use again for the other dish.
Main reasons for high food cost are: Menu planning •
No consideration of the time of day, day of week, holidays, weather, temperature.
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Poor format: the menu is not clean, understandable or dramatic. Too many or too few items on the menu. Monotonous menu. No balance between high and low cost items for higher average check. Poor promotion of low cast items No consideration of food supplies available in the market No thought to the appearance and conjunction of the food on the plate. Poor pricing of menu items. No consideration of type and amount of labor required for various menu items. No consideration or type and amount of equipment needed to process the menu items.
Purchasing Purchasing too much • Purchasing for too high a cost • • No detailed set of specifications governing quality, weight, types etc. • No competitive purchasing policy • No centralization of purchasing power and responsibility Poor relationship with purveyors • • No cost budget for purchasing • No audit of invoices and payments Use of fixed instead of flexible standing orders • Speculative purchasing • Graft between purchasing agent and purveyors • • ]theft by receiving man Receiving • No check on prices, quality, or quantity
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No system of obtaining credit for damaged goods or goods not received No check on receiving methods and procedures Lack of facilities such as scales Poor receiving equipment No record and subsequent check on goods received Perishable foods left out too long before storing
Storing •
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Food placed improperly in storage areas (e.g., fats, eggs, and milk near strong cheese and fish) Stored at wrong temperature and humidity No daily inspection of foods stored Poor sanitation in dry and refrigerated storage areas Theft in storeroom No periodic report of dead stock or record o inventory turnover No physical or perpetual inventory No policy of one man’s responsibility for food storage and issues
Issuing • • • •
No control or record of foods issued from storeroom No authority or responsibility for requisitions and issues Careless pricing of issues No force issues
Preparing Poor or no mechanical equipment for boning, slicing, • cutting, carving, trimming, and peeling Excessive trim of vegetables and meats • • No check on raw yields • No use of end products for production of low cost meals
Production Over production • Wrong methods of cooking • Cooking at wrong temperatures • Cooking too long no scheduling of foods to be processed • (too early, too late) • Not using standard recipes • Not cooking in small batches Processing Over production • Using wrong methods of cooking • Cooking at wrong temperature • Cooking too long • Faulty scheduling of food to be processed (too early, too • late) • No use of standard recipes • Faulty and dirty equipment • Not cooking in small batches when possible Service • No standard portion sizes • No standard size utensils for serving • No care of left over • No record of food served or leaving the kitchen Delay in bringing food to the customer • Carelessness (spillage, waste, etc.) • Sales • • •
Waitress theft Cashier theft Carelessness with walk-outs
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No food popularity index or comparison of sales and inventory consumption No sales records to detect trends Unattractive food, poorly served in a dirty atmosphere Poor promotion and advertising (internal and external)
Controls • No audit of daily sales (register readings, waiter’s checks, food checker reports). • No forecast of sales or cost budget • No record of price trends (best times to buy) • No checks on authority and responsibility of personnel • No control through the use of forms • No use of systematic procedures and policies for control purposes • No accounting for employee and officer meals • No control of facts.
Some frauds also increase the cost of the food such as: If purchaser and any employee make fraud and theft at the purchasing time e.g. purchaser order items for his own use and benefit. Etc. • If theft theft and fraud fraud is find find at at the time of recei receiving ving e.g. receiver receiver not check the quality and quantity of the product against the purchase order, and sign the invoice without checking for the benefit of his own or the supplier etc. • If theft theft and fraud fraud is find find in in the store room e.g. store man theft theft item for his own use, allot any item to his colleague without any requisition etc. • If theft and fraud is finding in the kitchen e.g. chefs eat in the kitchen, and waste the food. •
If theft and fraud is finding in the restaurant e.g. restaurant staff eats the food in restaurant, make fake K.O.T., and provide food to friends, colleagues etc. theft by cashier or employee at the cash counter. • If theft and fraud is find in the bar e.g. bar staff drink beverages, wrong measure of the drink drink to the guest guest for his own use, mix any other liquid in the beverage bottle or glass for his own use and benefit, provide drinks to friends, colleagues etc. Theft the bottles by the bar staff theft of the cash by the cashier, steward and by any bar staff. etc. • Some Some act actio ion n shou should ld be be take taken n such such as: as: •
Main points to control the high food cost ORDERING: The first step is to order right. Having detailed recipes, designing purchasing specifications, specifications, doing comparative shopping based on those specifications, specifications, and comparing quality, price and service, etc. Don’t Don’t order too early early in order to avoid spoilage, spoilage, wasted storage space and lost interest on your money. Never order too late, so premium costs and delivery charges accrue.
Purchasing: • •
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Properly check the invoices of the items. Properly check all the invoice of the vendors some time supplier sends the invoice of item which is not received and ordered. Properly check the purchase order to ensure that which item is required and which is not. Properly check that purchaser is not order any item to the supplier for his own use and benefit.
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Properly design an effective purchasing system which is helpful to reduce the theft and fraud.
RECEIVING:
The fundamentals fundamentals are obvious, count, weigh, inspect for condition condition and quality, verify against the purchase order, keep the receiving area clean and uncluttered, limit access to the receiving area, train the person receiving and make him or her responsible. Get credit memos from the delivery driver. Quality: Ensure the material quality check by the receiver, means the material should be according to the item specification and company which is mention by the vendor at the time of contract. Quantity: Ensure the material quantity check by the receiver, means the material should be according to the same quantity and weight which have ordered in purchase order. Damage/spoilage: properly check the material for any damage or spoilage which is cause of high food cost. • Properly check inventory properly so he can able to check that which items is not required and which is there in the stock. • Properly check there is no item in the invoice which is not received. STORING:
Method and place of storage for the various items should be appropriate for the the item. It should be secure from pilferage. The shelves should be strong enough for the product, allow air circulation and easy easy to clean. All items should be stored at a temperature appropriate appropriate for that product. Items should be dated (with year, in some cases) and priced. The storage area
should be orderly and clean. Shelves should be labeled and maybe even stocking quantities noted. Maintaining proper temperatures and ensuring that products are stored in a manner that prevents cross-contamination is critical in the safe storage or products. There are a number of resources that outline these procedures, including HACCP materials. Properly check the storing of the materials means each material should be store in a proper place and in a right temperature. Unnecessary material: Properly check the material which is in the stock but it is not too much required by the hotel. FIFO: Applied the FIFO (first-in, first-out) procedure in the store, means every thing should be placed in such a way that the previous material should use first. Theft: Properly check that there should be no theft by the store man and any other employee. • Properly check the store for the spoil material by which other material also can be spoiled. The item should be discarding immediately. • Properly take inventory to reduce the damage and to purchase the right quantity of the items. ISSUING:
Material is issuing by the store to department according to the requisition by the particular department. Proper checking of all the requisition of the department and the issuing material to check that there is no discrepancy. Proper checking of requisition for no item should be issue without any requisition of department. Proper checking for there is no fraud by the store keeper e.g. store keeper can allot the item to his college personally and can carry the product with himself after his shift.
PREPARATION:
Trim properly, use trimmings for stock pots and other recipes. Proper tools, sharp knives, clean and neat working area, enforcing a policy of following recipes, and having photos of finished products available and used regularly are also critical. COOKING:
Proper temperatures, proper cooking times, following recipes carefully, and using photographs of finished products, correct size, material, and type of utensils and cookware, clean work area. SERVING:
Serving is not only about portion control, it is also about decisions made regarding regarding portion size and presentation. presentation. With a buffet, it is obvious. Proper serving utensils, proper holding/serving equipment, right presentation presentation order, plate sizes, sizes, etc. In a bar it’s easy, too. Watch what comes back from bused tables to see if portions are proper. Marketing decisions may drive large portions but if the patrons are not eating it or taking it home, the portion size or the recipe should be reconsidered.
Other consideration to control the high food cost Put products away immediately after receiving them
The first opportunity for product quality loss is directly after receipt of the product. product. To help prevent this, this, it is critical that product is immediately stored in its proper location once it has been received. received. Failure to do so can cause cause those products requiring refrigeration or freezing to be exposed to ambient temperatures
that can reduce product quality within a relatively short period of time. Further, as product thaws, thaws, it will more more easily contaminate contaminate other products surrounding it, creating both safety and quality concerns. Finally, until until product is safely stored stored in its proper proper location, there is an increased likelihood of pilferage or utilization of the new product for production needs, rather than staff going into storage to procure the correct correct product. The key to to executing this best practice is to ensure adequate staffing on delivery days, as well as managing the times of delivery with suppliers. Temperature:
Temperature is typically the most influential factor in product quality and spoilage reduction. It is critical that storage units are maintained at optimal temperatures and, for refrigeration and freezer units, their gaskets are in good repair and that doors are not left open. Next to temperature, temperature, the most critical critical storage safety safety concern is ensuring that products are zoned in a manner to help prevent the cross contamination of potentially hazardous foods from spilling or dripping. Separate in zones & sealed:
products have varying optimal temperatures and can suffer from being stored too closely to other products that can influence their flavor like fresh fish stored near butter, While there are product zones that should be established to ensure safe product and limit cross contamination, there are also products that require separate zones to maintain quality, even if there is not a food safety concern, as in the previous example of the neighboring butter and fish. Ensuring all products products are properly sealed can help prevent this quality issue. Cool product before store:
It is important that prepared, hot product be either brought to a safe temperature prior to storage, or stored in a manner that will enable the safe cooling of the the product. This can be done through ice baths, blast chillers or breaking the hot product down into smaller pieces or batches. Regardless of the method used, it is important that hot, prepared items are cooled down and stored so that they do not remain in the temperature danger zone for more than four hours once placed into storage. Keep storage areas clean: Maintaining clean storage areas are critical in promoting the service of safe safe food. Not only does maintaining maintaining clean storage storage areas help fight illness causing bacteria, but it also reinforces the importance of cleanliness and safety as a priority for the business among staff. To achieve this goal, it is recommended that operators utilize daily and and weekly cleaning cleaning schedules for all storage areas. areas. A few ‘must-haves’ on any cleaning schedule would be the daily mopping of storage area floors, routine cleaning of storage shelving and walls and the changing out of drip pans used to collect any blood/liquid from stored or thawing product. Checking in Kitchen: Kitchen is an area where all raw material being cooked by the chefs according to the order of the guests. Properly check the kitchen area for the handling of food, means he should check that the raw material is being handled properly according to the standard by the chefs. • Talk Talk with with the chefs about how to prevent the food by the cross contamination. • Properly check that no one employee can eat the food in the kitchen. • Properly check the kitchen thoroughly store, deep freezer, working area etc. to check if any thing is not up to the standard. •
Checking in Restaurant: All prepared food is served in the restaurant according to the order of the guest. Properly check that the service of food should be according to the standard of the hotel. • Properly check that there is any dish in the menu which is rarely ordered by the guest which increase the cost and there should not be any dish in the menu by which the food cost is increase. • Properly check that no one employee can eat the food in the restaurant. •
Control on Restaurant cash counter:
All the revenue by the food is collect at the cash counter. • Properly check that there is no discrepancy between guest’s order and the revenue collected. • Properly check that all tables are charged according to the orders of the guests. • Properly check that there is no fraud or theft by the cashier or restaurant staff.
Control in Bar:
Bar is a place where most perishable items (alcoholic beverages) are served. This are required too much control because too much chances of theft and fraud is find in this area. • Properly check that all bar sales are properly recorded. • Properly check the breakage of the bottle is recorded. • Properly checking for no one employee should provide free drinks for friends etc.
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Properly check that no one employee drink the alcoholic beverages. Properly check the fraud by the bar staff means check the proper measure of the alcohol should provided to the guest. Properly check the cash means the cash should according to the bar sales. Properly check that all guests are properly charged against the orders. Properly check proper inventory of the stock of alcoholic beverages to reduce the theft and fraud.
To control the cost there are some checklist such as:PURCHASING
Person doing the purchasing is designated in writing. Purchasing/product specifications are written and used. "Special deals" are questioned. All purchasing is planned (budgeted) and controlled.
RECEIVING
Person receiving is NOT the person who orders. orders. (The person ordering can assist with receiving, but he/she cannot sign forms to “receive” the goods.) Persons receiving are designated in writing.
Deliveries are checked for accurate weight, number, price, temperature, temperature, condition, etc. (Managers should should spot check.) Shipping/receiving documentation is accurate and complete. Return/credit policy is in effect. Delivery times are established and enforced.
STORAGE
All items are stored as quickly as possible. (Frozen products should be stored immediately; all others as quickly as possible. possible. e.g., produce, produce, fruits, meat, poultry, poultry, fresh seafood, dry/canned grocery items, paper supplies, chemicals, cleaning supplies, etc.) The first in, first out (FIFO) method is used. All items are are dated and priced. (Aids in with inventory.) Access to inventory is limited to authorized personnel. Storage areas are secure and controlled. Storage areas are kept clean, dry, and in good repair.
Reference: http://www.armsco.com/freejul9.htm
