Your SlideShare is downloading. ×
Food cost control
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×

Saving this for later?

Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime - even offline.

Text the download link to your phone

Standard text messaging rates apply

Food cost control

742
views

Published on

Published in: Food, Business, Technology

0 Comments
1 Like
Statistics
Notes
  • Be the first to comment

No Downloads
Views
Total Views
742
On Slideshare
0
From Embeds
0
Number of Embeds
2
Actions
Shares
0
Downloads
51
Comments
0
Likes
1
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. Food cost controlFood cost control • It can be defined as guidance and regulation of cost of operations. • Under taking to guide and regulate cost needs to ensure that they are in accordance of the predetermined objectives of the business. • Guidance and regulations of cost are set as per expressed in the policy statements and budget of undertakings:
  • 2. Cont..Cont.. • Food cost control means : • You have a stick to your predetermined standards. • Set standards appropriate to your market before you buy, prepare and sell food. • Cost control procedures.
  • 3. What is Food Cost?What is Food Cost? Cost of Food Cooked + Wastage + Spoilage + Shrinkage/ Pilferage
  • 4. What isWhat is NotNot Food Cost Control?Food Cost Control? Bringing down the cost at the expense of • Quality & Guest Satisfaction Attitude: • Penny Wise, Pound Foolish • Golden Goose
  • 5. Why should you Control Food Cost ?Why should you Control Food Cost ? • Rs.1 Saved = Rs.10 Sales • Adds Straight to the Bottom Line • Competitive World
  • 6. How do you Control Cost?How do you Control Cost? 1. Shrinkage/ Pilferage Short Term: Better Security System Long Term: Create a working atmosphere, where people belong and are proud to be contributing to the growth of the company
  • 7. How do you Control Cost?How do you Control Cost? 2. Spoilage • Better Storage Facilities • Better Kitchen Design • Stock Management
  • 8. How do you Control Cost?How do you Control Cost? 3. Wastage • Temporary / Stressful / Negative / Life reducing way: Policing • Permanent / Enjoyable / Positive / Life enhancing way: Bring in a culture of High Performance
  • 9. How do you Control Cost?How do you Control Cost? 4. Cost of Food Cooked • Planning the Quantity • Ensuring the Quality
  • 10. ObjectiveObjective • To analyze income and expenditure:- – Gross profit = sales – food cost – Net profit = sales – (food cost + labour cost + overheads) • Pricing of food:- Selling Price = food cost + labour cost + overheads + profit (20-30%) (7-10%) (6-10%) (50%) • Prevention of inefficiencies:- • Data for the management:-
  • 11. Factors affecting the percentage ofFactors affecting the percentage of food cost-food cost- HurdlesHurdles • Food Purchasing • Menu Planning • Method of pricing • Culinary Skills • Service Skills • Avoiding Wastage
  • 12. Phase of control proceduresPhase of control procedures • Planning • Operational • Control after the event
  • 13. Phases of Control Planning Operation Control after the Event Finanacial Marketing Catering Purchasing Receiving Storing Issuing Production Sales Reporting Assesment Correction
  • 14. Financial PlanningFinancial Planning • Budget- Whole organization & single unit • Total Revenue • Expenditure • Borrowing • Profit • Shares • Debentures
  • 15. MarketingMarketing • Segment • Clientele • Turn over • Market Share • Average Spending Power • Choice • Trends • Advertisement • Promotions
  • 16. CateringCatering • The type of customer • The type of menu • Beverage provision necessary for operation • Food quality standard • Method of pricing • Type and quality of service • Degree and décor and comfort • Type and style of table and chairs
  • 17. OperationsOperations • Purchasing • Receiving • Storing • Issuing • Production control • Sales control
  • 18. Management control after theManagement control after the eventevent • F & B cost reporting • Assessment • Correction
  • 19. Cont..Cont.. Operation Control After the Event Planning
  • 20. METHOD OF FOOD CONTROLMETHOD OF FOOD CONTROL • a) Weekly/monthly food cost report- This system is used by small organization where manager controls each activity as daily routine. It is a reconciliation report of daily activities. The calculation procedure is • Opening stock + total purchase for the period – closing stock = total food sale
  • 21. • b) Daily food cost report- This method is used in medium sized operation.
  • 22. Problems of F&B IndustryProblems of F&B Industry • PERISHABILITY OF THE PRODUCT • UNPREDICTABILITY OF VOLUME OF BUSINESS • UNPREDICTABILITY OF THE MENU MIX: • SHORT CYCLE OF CATERING OPERATION • DEPARTMENTALIZATION