This document discusses food and beverage management applications. It covers topics like recipe management software, menu engineering software, integrated food and beverage software, and automated beverage control systems. Recipe files contain data on ingredients, portions, and costs. Sales reports analyze revenue by day, week, and category. Menu items are classified by profitability and popularity to determine pricing and placement strategies. Precosting and postcosting are used to forecast and analyze menu profitability.

1. Chapter 7
Food and Beverage
Management Applications
Managing Technology in the Hospitality Industry
Sixth Edition
(468TXT or 468CIN)
© 2011, Educational Institute

2. Competencies for
Food and Beverage
Management Applications
1. Identify the files typically maintained by recipe
management software applications for food and
beverage operations.
2. Describe how information from recipe management
software applications helps managers control food
and beverage operations.
© 2011, Educational Institute
(continued)
2

3. Competencies for
Food and Beverage
Management Applications
(continued)
3. Explain how food and beverage managers use
various reports generated by sales analysis software
applications.
4. Discuss the different menu item pricing strategies
used by food and beverage operations.
5. Explain the features and functions of menu
engineering software.
© 2011, Educational Institute (continued) 3

4. Competencies for
Food and Beverage
Management Applications
(continued)
6. Describe the advantages of integrated food and
beverage software in relation to precosting and
postcosting functions.
7. Explain how managers use reports generated by
automated beverage control systems.
© 2011, Educational Institute 4

5. Ingredient File Data
• Ingredient code number
• Ingredient description
• Purchase unit
• Purchase unit cost
• Issue unit
• Issue unit cost
• Recipe unit
• Recipe unit cost
© 2011, Educational Institute 5

6. Ingredient File Conversion Tables
To maintain a perpetual inventory record,
conversion tables track ingredients (by unit and by
cost) as they pass through the control points of:
• Purchasing
• Receiving
• Storing
• Issuing
• Production
• Service
© 2011, Educational Institute 6

7. Recipe File Data
• Recipe code number
• Recipe name
• Number of portions
• Portion size
• Recipe unit
• Recipe unit cost
• Menu selling price
• Food cost percentage
© 2011, Educational Institute
• Contribution margin 7

8. Menu File Data
• Identification number
• Descriptor
• Recipe code number
• Selling price
• Portion quantities
• Sales totals
© 2011, Educational Institute 8

9. Chaining Recipes
Recipes used as ingredients (sub-recipes) for a
standard recipe item that requires an
unusually large number of ingredients.
© 2011, Educational Institute 9

10. Sales Reports
• Daily sales report: itemizes and
summarizes revenue for a day.
• Weekly sales spreadsheet: weekly
summary of daily sales reports.
• Sales category analysis report: amounts
sold by sales category and day-parts.
• Marketing category report: weekly totals
summarizing revenue earned by
department and category.
© 2011, Educational Institute 10

11. Managing Plowhorses
Plowhorses: menu items high in menu mix but
low in contribution margin.
Strategies:
• Increase prices carefully.
• Test for demand.
• Relocate to lower profile on menu.
• Shift demand to more profitable items.
• Combine with lower cost products.
• Assess the direct labor factor.
• Consider portion reduction.
© 2011, Educational Institute 11

12. Managing Puzzles
Puzzles: menu items high in contribution margin
but low in popularity.
Strategies:
• Shift demand to these items.
• Consider a price decrease.
• Add value to the item.
© 2011, Educational Institute 12

13. Managing Stars
Stars: menu items high in contribution margin
and high in popularity.
Strategies:
• Maintain rigid standards.
• Place for high visibility location on menu.
• Test for selling price inelasticity.
• Use suggestive selling techniques.
© 2011, Educational Institute 13

14. Managing Dogs
Dogs: menu items low in contribution margin
and low in popularity.
Strategies:
• Increase selling price.
• Remove from menu.
© 2011, Educational Institute 14

15. Menu Item Pricing Strategies
• Cost-plus pricing
• Cost-multiplier pricing
• ACM pricing
© 2011, Educational Institute 15

16. Pre/Postcosting
Precosting: uses forecasted sales to determine a
menu’s profitability before menu produced.
Postcosting: uses actual sales figures to determine
a menu’s profitability after menu produced.
© 2011, Educational Institute 16

17. Beverage Control System Reports
• Sales by major beverage category report
• Sales by beverage server report
• Outstanding guest checks report
• Settlement methods report
• Net sales by time of day report
• Sales mix by major product report
• Product usage report
© 2011, Educational Institute 17