This document outlines factors that affect food cost and how to control them. It discusses ordering, receiving, storing, issuing, preparation and cooking, serving, and other factors. Some key points are to have accurate recipes and purchase specifications, inspect deliveries, store items under appropriate conditions, control portion sizes and minimize waste, monitor costs regularly through analysis and spot checks, and train employees. The overall message is that careful attention to many details across the food procurement and preparation process can help control food costs.

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