CORK INSTITUTE OF TECHNOLOGY INSTITIÚID TEICNEOLAÍOCHTA CHORCAÍ

Semester 1 Examinations 2008/09

Module Title: Food and Beverage Cost Control

Module Code: HOSP 7006

School: Humanities Programme Title: Bachelor of Business in Bar Management – Stage 2 Programme Code: OBARM_7_Y2 External Examiner(s): Mr. Martin Neville Internal Examiner(s): Ms Nicola Fallon Instructions: Answer Q1 and Q2. Plus any other two questions. Four questions in total out of six. Duration: 2 Hours Sitting: Winter 2008 Requirements for this examination: Note to Candidates: Please check the Programme Title and the Module Title to ensure that you have received the correct examination paper. If in doubt please contact an Invigilator.

Q1. You are the manager of a nightclub in Cork City. You are operating tight controls in your bar and therefore at the end of the night you insist on a stock take.

Your results are as follows: (Note: Keg details attached behind)

Opening Stock Closing stock

Guinness 5 full kegs 2 kegs @ 61.7 kg and 1 keg @ 25 kg

Cider 5 full kegs 0

Vodka 5 bottles (1 litre) 3 bottles (1 litre)

Gin 2 bottles (1 litre) 1 bottle (1 litre)

Baileys 1 bottle (750ml) 0

Price list

Product Euro

Guinness 3.80

Cider 4.60

Baileys 4.00

Vodka 4.20

Gin 4.20

Actual takings at end of night in till 3,117 euro.

(a) Calculate the overage or shortage (20 Marks)

(b) The till has been identified as the most widely used cash control system for food and beverage operations and an area where revenue is lost if not managed effectively (Barkeeper, 2008).

Briefly discuss the areas that businesses should address when using cash registers to ensure that they achieve their desired results. (5 Marks) (Total: 25 Marks)

Q2. The following are trading results for beverage operations at Smiddy’s bar:

2008 2007

Sales (vat inclusive) 320,000 150,000

Cost of sales 100,000 20,000

Overhead costs (Light, heating, insurance, rent, rates) 60,000 50,000

Wages 90,000 30,000

(i) Calculate the following:

(a) Gross profit

(b) Gross profit percentage

(c) Net profit

(d) Net profit percentage

(e) Labour cost percentage (20 Marks)

(ii) Comment on the results achieved above. (5 Marks)

(Total: 25 Marks)

Q3. There are six stages identified in the food and beverage control cycle. List and briefly

explain any five of these. Use examples where possible. (Total: 25 Marks)

Q4. Briefly explain the following:

(i) (a) Standard yield (2 Marks)

(b) Par stock (2 Marks)

(c) Production planning (2 Marks)

(d) Cyclic menus (2 Marks)

(e) Budget (2 Marks)

(f) Standard portion sizes and give an example of a method of portion control.

(3 Marks)

(ii) List the objectives of a food and beverage cost control system. (12 Marks)

(Total: 25 Marks)

Q5. There are two main pricing methods identified for a food and beverage establishment.

(a) List and briefly explain both of these pricing methods. (7 Marks)

(b) List the advantages and disadvantages of using both methods. (8 Marks)

(c) As a bar manager, which method would you choose to use and give reasons for your

choice. (5 Marks)

(d) You bought a keg of Guinness for 170 euro.

At what price should a pint of Guinness be sold to achieve a Gross Profit of 75%?

(5 Marks)

(Total: 25 Marks)

Q6. (a) Explain the overall importance of doing a stock take. (8 Marks)

(b) List the steps involved in a stock take. (17 Marks)

(Total: 25 Marks)

KEG DETAILS

Brewer Content Weight Empty Type Brand Litres/Pints Kg Kg

Beamish & Crawford 50/88 60 10 Aluminum Beamish

50/88 63.2 13.6 St steel Beamish

30/52.8 39.6 9.9 St steel Beamish

50/88 63.2 13.6 St steel Carling

50/88 60 10 Aluminum Foster’s

50/88 63.2 13.6 St steel Foster’s

50/88 60 10 Aluminum Scrumpy Jack

50/88 63.2 13.6 St steel Scrumpy Jack

30/52.8 39.6 9.9 St steel Beamish Red

50/88 60 10 Aluminum Miller Genuine Draft

50/88 63.2 13.6 St steel Miller Genuine Draft

30/52.8 44.7 14.7 St steel Kronenbourg 1664

Bulmers 50/88 63 12.5 St steel Bulmers

Diageo Ireland 50/88 61.7 11.8 St steel Budweiser

50/88 61.7 11.8 St steel Smithwicks

50/88 61.7 11.8 St steel Guinness

50/88 61.7 11.8 St steel Harp

50/88 61.7 11.8 St steel Hudson Blue

50/88 61.7 11.8 St steel Carlsberg

50/88 61.7 11.8 St steel Kilkenny

50/88 61.7 11.8 St steel Cashels

Heineken Ireland 50/88 61.8 11.8 St steel Heineken

50/88 61.8 11.8 St steel Murphy

30/52.8 39.5 9.5 St steel Murphy

30/52.8 42-43 12 St steel Coors Light

Tennents Ireland 50/88 60.3 9.5 Aluminum Stella Artois

50/88 60.3 9.5 Aluminum Bass

50/88 60.3 9.5 Aluminum Tennents

50/88 62.9 12.2 St steel Dry Blackthorn Cider