WEEK 9

CHAPTER 9: LABOR COST CONTROL

Hi guys👯 today is our last chapter in this subject. Today we will learn about labor cost control in chapter 9. Hope you all enjoy reading😉


What is job descriptions?
Job descriptions is detailed written statements that describe jobs.

3 Types part of job descriptions:

• A heading that states the job little and the department in which the job is located.
• A summary of the duties of the job, typically written in pharagraph
• A list of specific duties assigned to the job

Step to be included in an orientation program:

√ Introduction to the company

√ Review of important policies and practices

√ Review of benefits and services

√ Benefit plan enrollment

Completion of employment documents:

√ Review of employer expectations

√ Setting employees expectations

√ Introduction to fellow worker

√ Introduction to facilities

√ Introduction to the job

Training? 

= After the individuals worker has been properly introduced to the job, the employee still needs to be thoroughly trained, especially the initial period of employees.  

1) On the job training

• Inner training for current staff and new staff

2) Off the job training

• New employees trained in a location away from business

THANK YOU👯

WEEK 8

CHAPTER 8: CALCULATING FOOD AND BEVERAGE CONTROLS

Hello all👯Today we will learn in chapter 8 about calculating food and beverage controls. Today we will 8n week 8. Hope you all enjoy reading this chapter.


|Determining cost of food sold:|


   Opening Inventory
+ Purchases 
= Total available for sale
- Closing Inventory
= Cost of food issue
+ Cooking liquor
+ Transfers from other units
- Food to bar
- Transfer to other units
- Steward sales
- Gratis to bar
- Promotion expenses
= Cost of food consumed
- Cost of employees meals
= Cost of food sold

• The food cost %

= Food cost (Cost of food sold)
                 Food Sale
=Food cost%


|Daily Beverage Cost:|

Opening Beverage Inventory
+ Beverage Purchase for this months (all purchase)
= Total available for this months
- Closing Beverage Inventory
COST OF BEVERAGE ISSUE
- Transfer from bar
+ Transfer to bar  
Cost of beverage sold


 QUESTION:

a) Cost of food:

Opening Inventory                                      8500

+ Purchases                                                          13000                  

= Total available for sale                             21 500

- Closing Inventory                                      3400                        

= Cost of food issue                                     18 100

+ Cooking liquor                                          650

+ Transfers from other units                        700

- Food to bar                                                220

- Transfer to other units                               1000

- Steward sales                                             400

- Gratis to bar                                               200

- Promotion expenses                                   800                       

= Cost of food consumed                              830

- Cost of employees meals                            2500     

= Cost of food sold                                       14 330

b) Food Cost:

Food cost % 
=  Cost of food sold

           Food Sales

= 14 330

   35 000

= 0.41

c) Food cost 

= 35 000 + (35 000 X 5 / 100)

= 35 000 + 1750 
= 36750

FS%= COFS

           FS

= 14 330 / 36 750 X 100
= 39 %

d) Beverage Cost:

Opening Beverage Inventory                      42 00
+ Beverage Purchase for this months         6000
= Total available for this months                                                                                                    10 200
- Closing Beverage Inventory                        1 900
 - COST OF BEVERAGE ISSUE                         8 300 
 + Transfer to bar                                                300
= Cost of beverage sold                                  8 600



CONCLUSION
 Today i was happy because today we learn how to calculate the food and beverage. I hope i remember the formula for exam soon. 

THANK YOU👯

WEEK 7

CHAPTER 7: PRODUCTION AND SERVING CONTROL

Hello friends, im here again👯 For today we will in week 7 in chapter 7 the title is production and serving control. hope you all enjoy reading this blog.

Production planning and forecasting production needs.

• Production is the transformation of raw ingredients and processed food into an acceptable finished product, ready for service.
• The standard and standard procedure for production control are designed to ensure all portions of any given item conform management's plan for the item and each portion of any given item is identical to all other portions of the same items

Portion of a given menu item should be identical to one another in 4 aspects:

√ Ingredients

√ Proportions of ingredients 

√ Production method

√ Quantity

|Standard recipe as production tools |

Objectives:

• consistent in quality aspects including flavour, texture and portion size
• minimize the effect of employee turnover on food quality and simplify the training of the new staff
• key to centralized ingredient assembly where accuracy in weight and measure is essentials 

Sales income collection - Beverage:

• Optimizing the number of beverage sales
• Maximizing profit
• Controlling revenue

Guest Check and Control:

• Without guest checks
• Bars using guest checks (pre-checking system)
• Bars using guest checks (computer system)

CONCLUSION

Thats all for today. I hope we will understand this chapter and thank you for reading.

THANK YOU👯

WEEK 6

CHAPTER 6: STORING AND ISSUING CONTROLS

Im here again👯 hello, today we will in chapter 6. For today we will learn about storing and issuing controls. It is also an important process in food service operations. lets start..

DIRECT? 

DIRECTS are charged to food cost as they are received, on the assumption that these perishable items are purchase for immediate use. Food will be transfer to appropriate facility or near the kitchen and will be used entirely in food preparation on the day they are received.

STORES?

STORES are described as consisting of staples. When purchased, these food are considered part of inventory until issued for use and are not included in cost figures until they are used.

Storing objectives:
√ To determine the value of goods in stock 
√ To compare the value goods actually in the stores at particular time 
√ To list slow moving items
√ To compare the usage of food sales, to calculate food % and gross profit
√ As a deterrent against loss and pilferage  

Inventory Turnover:
√ A measure of the number of times inventory is sold or used in a period amount of time 
√ Inventory turnover rate is calculated by 
Formula :

Average inventory 

= opening inventory + closing inventory / 2

Inventory turnover 

= Food cost / average inventory 

Physical and Perpetual Inventory Control System:


~ Perpetual inventory is a running record of balance on hand for each item of goods in a storeroom. It provides a continuing record of food and supplies purchased, in storage and used 
~ Physical inventory is an actual account of items in all storage. Taken at the end of each month, in orders two or three times a year. also used to determine food cost

Controls for issuing products from storage:

1. Conditions of facilities and equipment
2. Arrangement of food  
3. Location of facilities 
4. Security of storage area
5. Dating and pricing of stored food

CONCLUSION

Thats all for my blog today. I hope after this can storing because there are many knowledge about it .

THANK YOU👯

WEEK 5

CHAPTER 5: PURCHASING AND RECEIVING CONTROL


Hello here👯 Today we will in week 5 in chapter 5 is the purchasing and receiving control.

WHAT IS PURCHASING?

√ Purchasing is the process of getting the right product into a facility at the right time  and in the form that meets pre-established standards for quality, quantity and price

Purchasing specification:
√ Product name and specification number
√ Pricing unit
√ Standard or grade
√ weight range/size 
√ Processing and packaging
√ Container sizen
√ Itended use
√ The information such as product yield

Maximum and minimum inventory system

- Inventory is a detailed and complete list of goods in stock

- Economic Order and Quantity (EOQ) is the order quantity that minimizes the total holding costs and ordering cost

- Determine on how much to re-order:

√ Never order more than your storage space can hold

√ Never order more supplies than you can use before they are expired 

√ Consider shipping cost when placing order 

 Formula:

Reorder level = Maximum usage x Maximum lead time 

Question 

Average usage    100 units per day

Minimum usage   60 unit per day

Maximum usage   130 units per day

Lead time            20-26 day

EOQ                     4,000 units

a) Reorder level

Maximum usage X Maximum lead time

= 130 X 26

= 3380

b) Maximum stock level

Re order level - (Min usage X Min lead time) + EOQ

= 3380 - (60 X 26) + 4, 000

= 3380 - 1560 + 4, 000

= 5820

C) Minimum stock level

Re order level - ( Average usage X Average lead time)

=3380 - (100 X 6.6)

=3380 - 660

= 2720

WHAT IS RECEIVING?

√ Receiving is a point of which foodservice operations inspect the products and take legal ownership and physical possession of the items ordered 

√ To ensure the food and supplies delivered matched established quality and quantity specifications  

Receiving process:

• Inspect delivery and check purchase order
• Inspect delivery against invoice
• Accept order only if quality and quantity specifications are met
• Complete receiving records
• immediately transfer goods to storage

THANK YOU👯

WEEK 4

CHAPTER 4: THE MENU, THE FOUNDATION FOR CONTROL

Hello im here again👉👈 Today we will be in the fourth week and we will learn chapter 4 is the menu, the foundation for control.

Menu is the primary sales tool for any restaurants operation.
1) Satisfy guest expectations
2) Achieve quality goals
3) Cost effective
4) Must be accurate

Allowable food cost 

300, 000 (Forecasted food sales) - 189, 000 (Non-food expenses) - 15, 000 (Profit requirements) 

= 96, 000


Budgeted food cost % 

96, 000 (allowable food cost) / 300, 000 (forecasted food sales) 

= 0.32 or 32 % 


Selling price 

1.50 (item's standard food cost) / 0.33 (desired food cost percent)                            

= 4.55

If  food cost is to be 40 %

√ Multiplier 
= 1 / desired food cost %
= 1 / 40
= 2.5

If ingredients cost in 3. 32

√ Base selling price 
= Ingredients cost x Multiplier 8. 30        
= 3.32 x 2.5


Basic Menu Engineering Process:
1) Stars 
- items that are popular profitable
2) Plowhorses 
- item that are not profitable but popular
3) Puzzles 
- item that are profitable but no popular
4) Dogs 
- item that are neither profitable nor popular

THANK YOU👯

WEEK 3

CHAPTER 3: THE OPERATING BUDGET AS A CONTROL TOOL

Hello here😉 Today is our third week of study in cost control. this week we will go to chapter 3 is the operating budget as a cost tool.

The Operating Budget, Budget Standards:A budget is simply a forecast or estimate of projected revenue, expenses and profit and operating budget is a combination of known expenses, expected future costs, and forecasted income over the course of a year.

Forecasting Sales Income: 

Total Sales

• Refers to total volume of sales expressed in dollar (ringgit) terms.

Category

• Total sales or beverage sales, such as total steak sales or total seafood sales 

Server

• Total dollar volume of sales in a gives period like day,week and meal period.

Seat

• By the number of seats in the restaurant, usually by one year.

MONETARY TERMS

1. Sales Price

2. Average sale

3. Average sale per server 

NON-MONETARY TERMS

1. Total number sold

2. Cover

3. Total covers

4. Seat turnover

1. Variance

• (Sales this year - sales last year)

2. Percentage Variance

• Variance / Sales last year X 100

3. Revenue Forecast

• Sales last year + (Sales last year X % increase estimate)

4. Increase Revenue

• Revenue forecast - Sales last year

Sales = Cost of sales + Cost of labour + Cost of overhead + Profit

Sales = Variable cost + Fixed cost + Profit

S = VC + FC + P

THANK YOU👯