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Food cost control
1. Food cost controlFood cost control
โข It can be defined as guidance and regulation of cost of
operations.
โข Under taking to guide and regulate cost needs to
ensure that they are in accordance of the
predetermined objectives of the business.
โข Guidance and regulations of cost are set as per
expressed in the policy statements and budget of
undertakings:
2. Cont..Cont..
โข Food cost control means :
โข You have a stick to your predetermined standards.
โข Set standards appropriate to your market before you
buy, prepare and sell food.
โข 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
โข Quality & Guest Satisfaction
Attitude:
โข Penny Wise, Pound Foolish
โข Golden Goose
5. Why should you Control Food Cost ?Why should you Control Food Cost ?
โข Rs.1 Saved = Rs.10 Sales
โข Adds Straight to the Bottom Line
โข 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
โข Better Storage Facilities
โข Better Kitchen Design
โข Stock Management
8. How do you Control Cost?How do you Control Cost?
3. Wastage
โข Temporary / Stressful / Negative / Life
reducing way: Policing
โข 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
โข Planning the Quantity
โข Ensuring the Quality
10. ObjectiveObjective
โข To analyze income and expenditure:-
โ Gross profit = sales โ food cost
โ Net profit = sales โ (food cost + labour cost + overheads)
โข Pricing of food:-
Selling Price = food cost + labour cost + overheads + profit
(20-30%) (7-10%) (6-10%) (50%)
โข Prevention of inefficiencies:-
โข Data for the management:-
11. Factors affecting the percentage ofFactors affecting the percentage of
food cost-food cost- HurdlesHurdles
โข Food Purchasing
โข Menu Planning
โข Method of pricing
โข Culinary Skills
โข Service Skills
โข Avoiding Wastage
12. Phase of control proceduresPhase of control procedures
โข Planning
โข Operational
โข 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
โข Budget- Whole organization & single unit
โข Total Revenue
โข Expenditure
โข Borrowing
โข Profit
โข Shares
โข Debentures
16. CateringCatering
โข The type of customer
โข The type of menu
โข Beverage provision necessary for operation
โข Food quality standard
โข Method of pricing
โข Type and quality of service
โข Degree and dรฉcor and comfort
โข Type and style of table and chairs
20. Problems of F&B IndustryProblems of F&B Industry
โข PERISHABILITY OF THE PRODUCT
โข UNPREDICTABILITY OF VOLUME OF BUSINESS
โข UNPREDICTABILITY OF THE MENU MIX:
โข SHORT CYCLE OF CATERING OPERATION
โข DEPARTMENTALIZATION