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A presentation by Rahul Akerkar
Factors Affecting Food Cost
Ordering
Receiving
Storing
Issuing
Preparation & Cooking
Serving
Other
Ordering
Are your recipes detailed & accurate?
Have you designed your purchase specifications?
Have you comparison shopped based on your
specifications?
Item quality, price & vendor service compared?
Order only as needed - don’t overstock or order too
early
Receiving
Inspect for condition & quality
Check the count, weight, specification (scales accurate?!)
Verify against purchase order
Keep receiving area clean & uncluttered
Limit access to the receiving area
Train the receiving person to be responsible
Bill, challan, credit memo must accompany receipt
Store deliveries promptly, especially perishables
Storing
Is method & place of storage appropriate for each item?
Is it secure from pilferage?
Are shelves strong enough, ventilated & easy to clean?
Are items stored in temperature appropriate conditions?
Are items dated for receipt?
Is the storage area orderly, well organized & clean?
 What is issuing based on? (indents, requisitions, verbal)
 Who has access or authority to issue or take things from the
stores or refrigerators?
 Are issues being in appropriate quantities & times?
 Is there a relationship to volume or reasonable par stocks?
 Are issues being accounted for?
 Are issues being made to the appropriate cost center?
 Remember, “First in, first out”
Issuing
Preparation & Cooking
 Accurate butchery and prep - control your yields (trimmings, wastages)
 Cross-utilization of ingredients & trimmings in other recipes
 Hygiene of prep & cooking area, handling, holding of prepped items -
minimize spoilage
 Document accurately your recipes and follow them
 Photograph the end product
 Are you prepping, producing, cooking too much?
 Are you following recipes and procedures accurately?
 Are portion sizes correct?
Serving
Proper portion control - size, presentation, etc.
Proper serving dishes, utensils
Watch what comes back
Monitor the freebies
Errors in order taking & communication with kitchen
Does your food sell? Analyze your sales
Are menu items properly priced?
Ideal food costs, actual food costs & contribution margins
Other Factors
Employee training & accountability
Staff meals
Calculation, accounting or inventory errors
Internal profit or cost center transfer errors
Employee “grazing”
Theft
How Do You Control It?
Monitor & analyze weekly or fortnightly
- don’t wait for month-end
Spot check
Automate
Train

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Foodcostcontrolh&ra rahul akerkar

  • 1. A presentation by Rahul Akerkar
  • 2. Factors Affecting Food Cost Ordering Receiving Storing Issuing Preparation & Cooking Serving Other
  • 3. Ordering Are your recipes detailed & accurate? Have you designed your purchase specifications? Have you comparison shopped based on your specifications? Item quality, price & vendor service compared? Order only as needed - don’t overstock or order too early
  • 4. Receiving Inspect for condition & quality Check the count, weight, specification (scales accurate?!) Verify against purchase order Keep receiving area clean & uncluttered Limit access to the receiving area Train the receiving person to be responsible Bill, challan, credit memo must accompany receipt Store deliveries promptly, especially perishables
  • 5. Storing Is method & place of storage appropriate for each item? Is it secure from pilferage? Are shelves strong enough, ventilated & easy to clean? Are items stored in temperature appropriate conditions? Are items dated for receipt? Is the storage area orderly, well organized & clean?
  • 6.  What is issuing based on? (indents, requisitions, verbal)  Who has access or authority to issue or take things from the stores or refrigerators?  Are issues being in appropriate quantities & times?  Is there a relationship to volume or reasonable par stocks?  Are issues being accounted for?  Are issues being made to the appropriate cost center?  Remember, “First in, first out” Issuing
  • 7. Preparation & Cooking  Accurate butchery and prep - control your yields (trimmings, wastages)  Cross-utilization of ingredients & trimmings in other recipes  Hygiene of prep & cooking area, handling, holding of prepped items - minimize spoilage  Document accurately your recipes and follow them  Photograph the end product  Are you prepping, producing, cooking too much?  Are you following recipes and procedures accurately?  Are portion sizes correct?
  • 8. Serving Proper portion control - size, presentation, etc. Proper serving dishes, utensils Watch what comes back Monitor the freebies Errors in order taking & communication with kitchen Does your food sell? Analyze your sales Are menu items properly priced? Ideal food costs, actual food costs & contribution margins
  • 9. Other Factors Employee training & accountability Staff meals Calculation, accounting or inventory errors Internal profit or cost center transfer errors Employee “grazing” Theft
  • 10. How Do You Control It? Monitor & analyze weekly or fortnightly - don’t wait for month-end Spot check Automate Train