ControllingFoodservice Costs

Controlling Food Costs during Production

Chapter 7

Learning ObjectivesAfter completing this chapter, you should be able to:

• Describe the tools managers use to estimate food-production levels.

• Explain how managers monitor food quality.

• Detail how managers monitor the food-production process.

• Detail how managers monitor the beverage-production process.

• Explain how managers monitor beverage quality.

Chapter 7 Controlling Food Costs during Production

ESTIMATING FOOD-PRODUCTION LEVELSDeveloping Sales Forecasts

Chapter 7 Controlling Food Costs during Production

Sales Histories

Menu Mix

Chapter 7 Controlling Food Costs during Production

Developing a Production Schedule

Chapter 7 Controlling Food Costs during Production

Adjusting (Scaling) Standardized Recipe Portions

Chapter 7 Controlling Food Costs during Production

Chapter 7 Controlling Food Costs during Production

Baker’s Percentage

Chapter 7 Controlling Food Costs during Production

Manager’s MathAnswer the Questions:

Chapter 7 Controlling Food Costs during Production

Calculating Recipe Yield

Chapter 7 Controlling Food Costs during Production

MONITORING FOOD PRODUCTIONMaintaining Quality Standards

Managing the Production Process

Chapter 7 Controlling Food Costs during Production

Chapter 7 Controlling Food Costs during Production

Worker Output

Chapter 7 Controlling Food Costs during Production

Ensuring Proper Holding Temperatures

Using Carry-Overs

Chapter 7 Controlling Food Costs during Production

MONITORING BEVERAGE PRODUCTIONMaintaining Beverage Quality Standards

Maintaining Beverage Cost Controls

Chapter 7 Controlling Food Costs during Production

Chapter 7 Controlling Food Costs during Production

Chapter 7 Controlling Food Costs during Production - Summary

1. Describe the tools managers use to estimate food-production levels.

• Managers develop sales forecasts to project revenue and costs for given time periods.

• Managers use historical data, as well as menu mix analyses based on those data, to estimate the number of menu items needed for a given shift or day.

• Managers populate the food-production chart to communicate to the staff the estimated levels of each food item to prepare.

• When needed, managers scale recipes to the appropriate yields, as indicated on the food-production chart.

• Managers also know how to calculate yields for all recipes.

Chapter 7 Controlling Food Costs during Production - Summary

2. Explain how managers monitor food quality.

• Managers first monitor adherence to standardized recipes.

• Managers also conduct quality-control line checks, including taste tests, to ensure that products are of the appropriate quality and are meeting other established standards, including portion sizes.

• When there are quality issues, managers investigate and implement solutions.

Chapter 7 Controlling Food Costs during Production - Summary

3. Detail how managers monitor the food-production process.• Monitoring food production process consists of several aspects such as

controlling, minimizing food waste and increasing worker output.

• Quality standards are met by implementing quality-control line check.

• Savvy managers check with the service staff because those staff members generally act as representatives to the customers and hear about issues first.

• As with quality issues, when a problem is identified, it is the manager’s responsibility to implement the solution and ensure that staff members are adequately trained so that the issue does not recur.

• Worker output can be improved by using prep lists and station diagrams.

Chapter 7 Controlling Food Costs during Production - Summary

4. Detail how managers monitor the beverage-production process.• Managers use some of the same principles to manage the

beverage-production process as the food process, including the use of standardized recipes.

• In addition, managers also calculate sales per shift to monitor individual productivity levels.

• To control costs, managers compare actual to expected liquor sales, looking for areas where the variance is great.

• A large variance indicates a problem that must be resolved.

• Managers must also closely manage the inventory process, the number of complimentary drinks, and the use of the “no-sale” cash register feature to ensure that liquor sales are made appropriately.

Chapter 7 Controlling Food Costs during Production - Summary

5. Explain how managers monitor beverage quality.

• Managers can establish and monitor beverage quality by setting standards that are described in detail in writing.

• An operation should provide clear procedures and necessary facilities and equipment to meet these standards.

• Employees should be trained and educated about established operational standards.

• A periodical review of standards with employees is essential so that employees understand how they meet standards and in what areas they could improve.

Chapter 7 Controlling Food Costs during Production

Key Terms:Baker’s percentage A formula in which the weight of the flour equals 100 percent and all the other ingredients are calculated in proportion to the weight of the flour.

Carry-over production Food that has been previously produced but not served to customers.

Conversion factor When converting recipes, a multiplier used to adjust the quantity of ingredients on the existing recipe to the quantity needed to produce the desired yield.

Food-production chart A chart that provides the essential information a staff needs to know on exactly what and how much food to prepare.Popularity index The percentage share of a given menu item in its respective category (e.g., entrée), derived by dividing the number of portions sold by the total number of items in the same category thatwere sold.

Pour cost percentage The proportion of beverage cost to sales price.

Chapter 7 Controlling Food Costs during Production

Key Terms continued:

Quality-control line check A system for ensuring product freshness and sufficient quantities, encompassing taste tests and checking standards.Recipe conversion A method used to change the yield of a recipe from its original yield to a desired yield.

Recipe yield The number of portions a standardized recipe produces.Taste test Tasting done by staff prior to the start of a meal period to determine if products meet the establishment’s standards.

Chapter 7 Controlling Food Costs during Production

Chapter Images

Chapter 7 Controlling Food Costs during Production

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Chapter 7 Controlling Food Costs during Production

Chapter Images continued