2015 DMC2523/2413 Menu Planning and Cost Control

1. Topic 5
Menu and Purchasing
DMC2523 MENU PLANNING AND COST CONTROL
Laura Law Perak College of Technology

2. 1. Describe the relationship between menu
planning and inventory, and note the effects of
rationalization, diversification, and
convenience foods.
2. Identify important staff member considerations
at the menu planning control point.
3. Identify important equipment and facilities
considerations at the menu planning control
point.
4. Identify factors that influence menu changes.
(continued)
Laura Law Perak College of Technology

3. 1. Identify factors that influence purchasing needs,
and list the functions of the purchasing control
point.
2. Explain the relationship between purchasing and
inventory.
3. Outline the skills of a successful buyer, including
what one should know about dealing with
suppliers.
4. Explain how a buyer can reduce risks at the
purchasing control point.
(continued)
Laura Law Perak College of Technology

4.  MENU – is the mission statement for a food
establishment.
 - it defines the operation's concept and
communicates concept to guest.
 - it attempts to provide what guest expect from
their overall hospitality experiences.
 - it also a plan for the entire food service system.
 INVENTORY – is the total supply of items an
operation has in stock.
Laura Law Perak College of Technology

5.  RATIONALIZATION – the creation of a
simplified, balanced menu for the sake
of operational effeciency and guest
satisfaction.
 CROSS-UTILIZATION – is to prepare
and serve as many menu items as
possible with a limited number of raw
ingredients.
Laura Law Perak College of Technology

6.  An operation's staff members are
important to the success of its menu.
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7. 
Equipment should be constructed
according to nationally recognized
food safety standards and /or be listed
by accredited and listing organization.
Laura Law Perak College of Technology

8. 
The layout and design of the facilities are also important
considerstions in menu planning, because they establish the
physical limits within which food preparation and service
takes place.The facilities must be adequate for the purchasing,
receiving, storing, issuing, preparing, cooking, holding and
serving of every item on the menu.

Both indoor and outdoor facilities affect the image of an
establishment.
Laura Law Perak College of Technology

9.  External
• Guest demands (most important)
• Economic factors
• Competition
• Supply levels
• Industry trends
Internal
• Meal pattern
• Concept and theme
• Operational system
• Menu mix
Laura Law Perak College of Technology

10.  The major objectives of purchasing is to obtain the
right quality and quantity of items at the right price
from the right supplier.
 The menu determines what ingredients must be
purchased and in what amounts.
 Purchasing is one of the most control points for cost
and quality control.
Laura Law Perak College of Technology

11. • Establish and maintain adequate supply
of products.
• Minimize investment in inventory.
• Maintain quality, food safety, and cost
standards.
• Maintain competitive position.
Laura Law Perak College of Technology

12. 
Standard purchase specification – precisely
defined the quality, quantity and other
characteristics of the products an establishment
buys.

Food sample date sheet – this form helps
standardize the evaluations of products that an
operation is considering to purchase. It can be
used to record purchasing, storing, preparing
and serving information about such products.

Purchase order – assists in maintaining
purchasing control.The purchase order
comprimises the details of an order placed with
the ditributor.
Laura Law Perak College of Technology

13. 
Hotels often have a full-time
purchasing agent or if the hotel is
large, a purchasing department
responsible for all food and non-food
buying.

In smaller operations, the manager,
assistant manager, executive chefs,
steward or food and beverage director
might serve as a partime buyer.
Laura Law Perak College of Technology

14. • Managerial skills
• Technical knowledge
• Interpersonal skills
• High ethical standards
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15. The buyer is responsible for maintaining adequate inventory
levels
The buyer should minimize the operation's investment in
inventory
The buyer must maintain the operation's quality, food safety
and cost standards.
The buyer must work to maintain the operation's competitive
position.
The buyer must purchase the product, not the deal. He or she
should never compromise the establishment's standards for a
better price.
Laura Law Perak College of Technology

16. • Satisfy 90% to 100% of purchasing
needs
• Product consistency
• Purchasing leverage
• Build supplier trust
• Special services:
Menu consulting
Employee training
New product presentations
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17. • Food safety policies
• Size and services
• Staff and labor relations
• Purchasing power and financial
position
• Products and prices
• Reputation
• Value
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18.  The materials from which equipment and
utensils are constructed must be safe
( non-toxic ), durable, corrosion-resistant,
nonsbsorbent, sufficient in weight and
thickness to withstand repeated
warewashing,finished with a smooth and
easily cleanable surface,and resistant to
pitting,chipping,crazing,scratching,
scoring, distortion,and decomposition.
Laura Law Perak College of Technology

19.  A food service operation's facilties help
determine the operations purchasing
method. If the facilties are spacious and
accommodate many guests, the operation
will likely use a formal purchasing
method, which involves relatively large
orders.
Laura Law Perak College of Technology

20.  The purchasing activity is a constant state of
flux.Conditions change from season to season,
from week to week,and some cases,overnight.
 Purchasing patterns must be altered when
conditions change.However,before a change is
implemented, it is important to systematically
predict and evaluate its impact on the
operation's food safety,quality,and cost
standard.As part of this systematic evaluation,
the risks must be clarified,analyzed and
reduced when possible.
Laura Law Perak College of Technology

21. • Food quality
• Food safety
• Cost controls
• Food production
methods
• Purchasing
procedures
• Suppliers and
competitors
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