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  1. 1. Principles of Food, Beverage, and Labor Cost Controls, Ninth Edition
  2. 2.  Who does the purchasing? ◦ Owners ◦ Managers ◦ Chef ◦ Steward One person responsible so they can be held accountable
  3. 3.  Perishables; those items that are typically fresh foods, and have a relatively short shelf life Non-perishables; those food items that have a relatively longer shelf life ◦ Groceries ◦ Staples ◦ Storeroom items
  4. 4. 1. Quality of food purchased2. Quantity of food purchased3. Prices at which food is purchased
  5. 5. 1. They force owners or managers to determine exact requirements in advance2. They are often useful in menu preparation3. They eliminate misunderstandings between stewards and purveyors4. Allows for true competitive bidding5. Eliminates need for detailed verbal descriptions6. They facilitate checking food as it is received
  6. 6.  Steward’s market quotation list - a form often used as a tool by food purchasers for; ◦ Taking daily inventory of perishables ◦ Determining suitable order quantities ◦ Recording market quotations ◦ Selecting vendors Par stock – maximum quantity that should be on hand at any given time
  7. 7.  Periodic order method: Amount required for the upcoming period - Amount presently on hand + Amount wanted on hand at the end of the period to last until the next delivery = Amount to order
  8. 8.  Perpetual inventory method: Par stock - Reorder point = Subtotal + Normal usage until delivery = Reorder quantity
  9. 9. 1. Storage space2. Limits on total value of inventory prescribed by management3. Desired frequency of ordering4. Usage5. Purveyors’ minimum order requirements
  10. 10. 1. Wholesalers2. Local Producers3. Manufacturers4. Packers5. Local farmers6. Retailers7. Cooperative associations
  11. 11. Advantages: Foods and beverages can be purchased at lower prices because of volume Desired quality can be obtained more readily because the steward has a greater choice of markets Foods can be obtained that meet specs Larger inventories can be maintained, ensuring reliable supply to individual units Possibility of dishonest purchasing in individual units are greatly reduced
  12. 12. Disadvantages: Each unit must accept the standard item in stock and has little freedom to purchase for its own particular needs Units can’t take advantage of local specials Menus are ordinarily standardized, limiting the individual unit managers’ freedom
  13. 13. 1. Telephone2. Fax3. Quotation sheets obtained by mail4. Fax modem5. Information supplied by salespersons6. Direct computer links with purveyors via the internet or dedicated telephone line
  14. 14. 1. The quantity delivered should be the same as the quantity listed on the Steward’s Market Quotation List and the invoice2. The quality delivered should conform to the establishment’s specifications3. The prices on the invoice should match those circled on the Steward’s Market Quotation List
  15. 15. Meats R’ Us 777 Cow Pasture Way Bulls tail, IOTo: Grandview Bistro Date: October 3, 20XX Quantity Unit Description Unit Price Amount 20 lbs. Beef tenderloin 9.20 184.00 20 lbs. Leg of lamb 12.40 248.00 $432.00
  16. 16.  Regardless of the methods used by employees to requisition food and beverage products, or management to issue these, inventory levels will be affected. It will be your responsibility and that of your purchasing agent to monitor this movement and purchase additional products, as needed. Re-stocking the inventory is critical if product shortages are to be avoided and if product necessary for menu item preparation is to be available.
  17. 17.  Operators must be careful not to overload storage capacity. Increased inventory of items generally leads to greater spoilage and loss due to theft. Shelf life is the amount of time a food item retains its maximum freshness, flavor, and quality while in storage. The shelf life of food products varies greatly. The cost to the vendor for frequent deliveries will be reflected in the cost of the goods to the operator.
  18. 18. 1. Storage capacity2. Item perishability3. Vendor delivery schedule4. Potential savings from increased purchase size5. Operating calendar6. Relative importance of stock outages7. Value of inventory dollars to the operator
  19. 19. 1. Verify the quantity, quality, and price for each item conforms exactly to the order placed2. Verify invoice with rubber invoice stamp3. List foods delivered each day on the receiving Clerk’s Daily Report for that day4. Forward paperwork to proper personnel5. Move food to appropriate storage areas
  20. 20. 1. Verification of the date food received2. Signature of the receiving clerk who vouches for the accuracy of the order3. Steward’s signature, acknowledging delivery of food items4. Food controller’s verification calculations are correct on the invoice5. Signatory approval of the bill for payment by an authorized individual before a check is drawn
  21. 21.  Directs – foods that extremely perishable by nature, purchased daily. ◦ For immediate use ◦ Considered to be issued on delivery ◦ Go directly onto today’s food cost Stores – perishable but have a relatively longer shelf life. ◦ Not for immediate use ◦ Included on food cost when they are issued
  22. 22.  The great problem in employing receiving personnel is with the vast amount of knowledge of foods these workers require This may explain why some restaurants do not require quality checks upon delivery Someone has to do it!!! If not your customers will!!! © John Wiley & Sons, Inc. 2009
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