SlideShare a Scribd company logo
The Control Process Slide 1 / 32 BAC-4131 Food and Beverage Management Cost Control: The Control Process Wednesday, March 02, 2011
Recap of the previous session What is average sale per customer? What is Directly variable cost? Describe non-controllable cost. Define sales mix. Explain Total sales per seat. Explain the features of labor cost. What is Basic food cost and Food cost %age. Slide 2 / 32 BAC-4131 Food and Beverage Management Cost Control: The Control Process Wednesday, March 02, 2011
Learning objectives KCM Define control and discuss the significance in food and beverage management. Enlist the responsibility for control in the food and beverage operation. Give examples of control techniques used in F & B service operation. Prepare an operating budget. Imbibe the significance of the cost benefit ratio. Slide 3 / 32 BAC-4131 Food and Beverage Management Cost Control: The Control Process Wednesday, March 02, 2011
Scope  Introduction to Control. Cost Control. Control Techniques. Budgets. Preparing an operating budget. The Cost/Benefit ratio. Examples Control Measures. Slide 4 / 32 BAC-4131 Food and Beverage Management Cost Control: The Control Process Wednesday, March 02, 2011
Introduction to Control Control is a process used by managers to direct, regulate, and restrain the actions of people so that the established goals of an enterprise can be achieved. The first step is to establish the objectives and goals. Slide 5 / 32 BAC-4131 Food and Beverage Management Cost Control: The Control Process Wednesday, March 02, 2011
Examples of Goals Financial success. Operating the best restaurant in the city. Providing insurance for health to all employees. Implementation of safety policy. Reduction of overtime. Food cost control. Slide 6 / 32 BAC-4131 Food and Beverage Management Cost Control: The Control Process Wednesday, March 02, 2011
Cost Control Cost control is defined as the process used by managers to regulate costs and guard against excessive costs. The process is chain oriented from Purchasing, Receiving, Storing, Issuing, preparing for sale and includes Training and scheduling. The process may vary from establishment to establishment. The goal is to eliminate excessive costs. Slide 7 / 32 BAC-4131 Food and Beverage Management Cost Control: The Control Process Wednesday, March 02, 2011
Causes of excessive cost Two principal causes of excessive costs are inefficiency and waste: The following are the main places are where excessive costs are found: Material Labor  Overhead expenses. Slide 8 / 32 BAC-4131 Food and Beverage Management Cost Control: The Control Process Wednesday, March 02, 2011
	Steps taken while administering sales control Ensuring that the serving staff know the proper prices of food. Ensuring that the staff documents the orders and maintains KOT’s in the proper manner. Ensure that service staff KOT’s and Kitchen KOT’s match. Keep a tab food quantity leaving the kitchen for service. Slide 9 / 32 BAC-4131 Food and Beverage Management Cost Control: The Control Process Wednesday, March 02, 2011
Control Techniques Establishing standards. Establishing Procedures. Training. Setting examples. Observation, correction employee actions. Record keeping. Disciplining employees. Preparing and following budgets. Slide 10 / 32 BAC-4131 Food and Beverage Management Cost Control: The Control Process Wednesday, March 02, 2011
Control Process The Control System is a term used to describe that collection of interdependent control techniques and procedures in use in a given food and beverage operation. Most control systems are based on Standard Operating Procedures. SOP’s used for financial operation are more stringent than the ones used for the general operation. Slide 11 / 32 BAC-4131 Food and Beverage Management Cost Control: The Control Process Wednesday, March 02, 2011
Establishing standards Standards are defined as rules or measures established for making comparisons and judgments. The standards are usually set by the management which are useful in judging the extent to which results meet the expectations. Quality Standards. Quantity standards. Cost standards. Slide 12 / 32 BAC-4131 Food and Beverage Management Cost Control: The Control Process Wednesday, March 02, 2011
Quality Standards Quality standards are used to define the degree of excellence of raw materials, finished products and , by extension, work. USDA standard Grading in food products 1 2 3 or A B C. Grading in case of alcoholic beverages with age. Grading done in employees against levels of skill. Slide 13 / 32 BAC-4131 Food and Beverage Management Cost Control: The Control Process Wednesday, March 02, 2011
Quantity standards Quantity standards are defined as measures of weight, count, or volume used to make comparisons  and judgments. Quantity Standard in food and beverage are for: Ingredients. Recipe. Portion size. Slide 14 / 32 BAC-4131 Food and Beverage Management Cost Control: The Control Process Wednesday, March 02, 2011
Cost standard Standard Cost is defined as the cost of goods or services identified, approved, justified and accepted by the management. These costs are both idealistic and real value. The basic method of calculating standard costs in food and beverage services is Recipe calculation. Used for measuring effectiveness of the operation. Slide 15 / 32 BAC-4131 Food and Beverage Management Cost Control: The Control Process Wednesday, March 02, 2011
Establishing procedures Procedures are methods employed to prepare products or perform jobs. Procedures are also standardized. Purchases. Receiving. Storage. Production. Service Slide 16 / 32 BAC-4131 Food and Beverage Management Cost Control: The Control Process Wednesday, March 02, 2011
Training Training is a process whereby managers teach employees to how is work done given the standards and procedures established. Training is in-depth, structured, difficult, frustrating, time consuming and lastly cost intensive. Training produces tangible goods and vice versa bad or untrained staff are detrimental to the system. Slide 17 / 32 BAC-4131 Food and Beverage Management Cost Control: The Control Process Wednesday, March 02, 2011
Setting Examples Example setting: Is a process of establishing standards and procedures. The procedures are a set of instructions presented in a sequential manner. Standards a benchmark for tasks either for every activity to be carried out in the operation. Procedures can be altered but standards remain uniform for an operation. Slide 18 / 32 BAC-4131 Food and Beverage Management Cost Control: The Control Process Wednesday, March 02, 2011
	Observing and correcting employees The result for not adhering to standards are evident from: Rise in Food and Beverage cost. Rise in consumption values. Inventory accumulation.  Pilferage habit form. Setting a bad example. Slide 19 / 32 BAC-4131 Food and Beverage Management Cost Control: The Control Process Wednesday, March 02, 2011
Records and reporting Usually are observation details and citations by the internal policy management and audit team. External audits for systems. Analysis of income statements. Careful analysis of requisitions. Careful analysis of inventories. Slide 20 / 32 BAC-4131 Food and Beverage Management Cost Control: The Control Process Wednesday, March 02, 2011
Disciplining Employees Discipline is defined as an action taken to admonish, chastise or reprimand an employee for work performance or personal behavior incompatible with established standards. Discipline arrives when corrective action fails or if there is serious diversion from standards laid out. Used as a control technique. Slide 21 / 32 BAC-4131 Food and Beverage Management Cost Control: The Control Process Wednesday, March 02, 2011
Budgets A Budget is defined as a financial plan and is described as a realistic expression of management goals and the objectives are defined in financial terms. Both Income and Expenses are budgeted. Cash flow budgets. Sales Budgets. Capital budget. Advertizing budgets. Slide 22 / 32 BAC-4131 Food and Beverage Management Cost Control: The Control Process Wednesday, March 02, 2011
Budget in Food and Beverage Operating budget: Is a forecast of sales activity and an estimate of costs that will be incurred in the process of generating sales. A financial plan for the said period. Begins with the historical information or financial records. In case or organizational restructure and non availability of data the previous experience of managers and alternative sources Slide 23 / 32 BAC-4131 Food and Beverage Management Cost Control: The Control Process Wednesday, March 02, 2011
Types of Budgets  Static Budget: The one that is prepared assuming only one level of business activity for the period. It contains anticipated values about inputs and outputs that are conceived before the period in question begins. Flexible Budgets: Based on the actual costs for # of units sold in the current year and not on higher or lower estimates. BAC-4131 Food and Beverage Management Cost Control: The Control Process Slide 24 / 32 Wednesday, March 02, 2011
BAC-4131 Food and Beverage Management Cost Control: The Control Process Slide 25 / 32 Wednesday, March 02, 2011
Preparing an operating budget Segregation of fixed and variable costs: As salaries and wages are considered semi-variable costs they must be partitioned into their fixed and variable components. 60% of Rs. 1,85,000.00 which is Rs. 111,000.00 to be taken as fixed component of salaries & wages. 40 % of Rs. 1,85,000.00 which is Rs. 74,000.00 to be taken a variable component of salaries and wages. BAC-4131 Food and Beverage Management Cost Control: The Control Process Slide 26 / 32 Wednesday, March 02, 2011
Preparing an operating budget 4. 60 % of employee benefits of Rs. 46,250.00 which is Rs. 27,750.00 are taken as the fixed component. 5. 40 % of employee benefits of Rs. 46,250.00 which is Rs. 18,500.00. BAC-4131 Food and Beverage Management Cost Control: The Control Process Slide 27 / 32 Wednesday, March 02, 2011
The Cost/Benefit ratio The concept of the Cost/Benefit ratio is the relationship between costs incurred in instituting and maintaining a single control or control system and the benefits or savings derived by doing so. No control measure can be instituted without a cost. BAC-4131 Food and Beverage Management Cost Control: The Control Process Slide 29 / 32 Wednesday, March 02, 2011
Examples Control Measures Lower Payback control measures: Relocation of cashier’s desk. Locking of front and back doors. Installing a modern time clock. Higher payback control measures Installing new locking system. Hiring new Food and Beverage controller. Incorporation of radical stores procedures. BAC-4131 Food and Beverage Management Cost Control: The Control Process Slide 30 / 32 Wednesday, March 02, 2011
	Considerations before implementing a control systems Quantifiable and non Quantifiable effects. Time required. Immediate and long term benefits. Accuracy. BAC-4131 Food and Beverage Management Cost Control: The Control Process Slide 31 / 32 Wednesday, March 02, 2011
		Questions  				 Comments BAC-4131 Food and Beverage Management Cost Control: The Control Process Slide 32 / 32 Wednesday, March 02, 2011

More Related Content

What's hot

Monitoring food service operations 1
Monitoring food service operations 1Monitoring food service operations 1
Monitoring food service operations 1Rajendra Nabar
 
TOPIC 2: Menu cost and Pricing Strategies
TOPIC 2:  Menu cost and Pricing StrategiesTOPIC 2:  Menu cost and Pricing Strategies
TOPIC 2: Menu cost and Pricing Strategies
Akmal Hafiz
 
Food and Beverage Cost Control
Food and Beverage Cost ControlFood and Beverage Cost Control
Food and Beverage Cost ControlAkmal Hafiz
 
INTRODUCTION TO COST CONTROL
INTRODUCTION TO COST CONTROLINTRODUCTION TO COST CONTROL
INTRODUCTION TO COST CONTROL
Yanne Evangelista
 
Unit 1. Introduction to Food and Beverage Control.pptx
Unit 1. Introduction to Food and Beverage Control.pptxUnit 1. Introduction to Food and Beverage Control.pptx
Unit 1. Introduction to Food and Beverage Control.pptx
HannaViBPolido
 
Cost and Sale concepts
Cost and Sale conceptsCost and Sale concepts
Cost and Sale conceptsKenny Nguyen
 
Monitoring food service operations ii daily food cost
Monitoring food service operations ii daily food costMonitoring food service operations ii daily food cost
Monitoring food service operations ii daily food costRajendra Nabar
 
Food storing and issuing control
Food storing and issuing controlFood storing and issuing control
Food storing and issuing controlRajendra Nabar
 
Latest in Menu Reengineering by Chef Josh Boutwood
Latest in Menu Reengineering by Chef Josh Boutwood Latest in Menu Reengineering by Chef Josh Boutwood
Latest in Menu Reengineering by Chef Josh Boutwood
Homer Nievera
 
F&B cost control
F&B cost controlF&B cost control
F&B cost control
Santiago Velasquez Nazate
 
Monitoring food service operations iii actual & std costs
Monitoring food service operations iii actual & std costsMonitoring food service operations iii actual & std costs
Monitoring food service operations iii actual & std costsRajendra Nabar
 
The-Menu-and-its-courses
The-Menu-and-its-courses The-Menu-and-its-courses
The-Menu-and-its-courses
Ria Lopez (Reservist)(ms.Education)
 
food and bverage cost controls
food and bverage cost controlsfood and bverage cost controls
food and bverage cost controls
ashok kumar
 
Beverage control
Beverage controlBeverage control
Beverage control
Ravi Dandotiya
 
Food and beverage cost control
Food and beverage cost control Food and beverage cost control
Food and beverage cost control
teddy bear
 
FOOD AND BEVERAGE SERVICE PROCEDURES
FOOD AND BEVERAGE SERVICE PROCEDURESFOOD AND BEVERAGE SERVICE PROCEDURES
FOOD AND BEVERAGE SERVICE PROCEDURES
MUMTAZUL ILYANI AZHAR
 
CLASSIC KITCHEN BRIGADE
CLASSIC KITCHEN BRIGADECLASSIC KITCHEN BRIGADE
CLASSIC KITCHEN BRIGADE
Prince Sansoya
 

What's hot (20)

Monitoring food service operations 1
Monitoring food service operations 1Monitoring food service operations 1
Monitoring food service operations 1
 
TOPIC 2: Menu cost and Pricing Strategies
TOPIC 2:  Menu cost and Pricing StrategiesTOPIC 2:  Menu cost and Pricing Strategies
TOPIC 2: Menu cost and Pricing Strategies
 
Issuing control
Issuing controlIssuing control
Issuing control
 
Food and Beverage Cost Control
Food and Beverage Cost ControlFood and Beverage Cost Control
Food and Beverage Cost Control
 
INTRODUCTION TO COST CONTROL
INTRODUCTION TO COST CONTROLINTRODUCTION TO COST CONTROL
INTRODUCTION TO COST CONTROL
 
Unit 1. Introduction to Food and Beverage Control.pptx
Unit 1. Introduction to Food and Beverage Control.pptxUnit 1. Introduction to Food and Beverage Control.pptx
Unit 1. Introduction to Food and Beverage Control.pptx
 
Cost and Sale concepts
Cost and Sale conceptsCost and Sale concepts
Cost and Sale concepts
 
Ch04
Ch04Ch04
Ch04
 
Monitoring food service operations ii daily food cost
Monitoring food service operations ii daily food costMonitoring food service operations ii daily food cost
Monitoring food service operations ii daily food cost
 
Food storing and issuing control
Food storing and issuing controlFood storing and issuing control
Food storing and issuing control
 
Latest in Menu Reengineering by Chef Josh Boutwood
Latest in Menu Reengineering by Chef Josh Boutwood Latest in Menu Reengineering by Chef Josh Boutwood
Latest in Menu Reengineering by Chef Josh Boutwood
 
F&B cost control
F&B cost controlF&B cost control
F&B cost control
 
Monitoring food service operations iii actual & std costs
Monitoring food service operations iii actual & std costsMonitoring food service operations iii actual & std costs
Monitoring food service operations iii actual & std costs
 
The-Menu-and-its-courses
The-Menu-and-its-courses The-Menu-and-its-courses
The-Menu-and-its-courses
 
food and bverage cost controls
food and bverage cost controlsfood and bverage cost controls
food and bverage cost controls
 
Controlling Food Costs
Controlling Food CostsControlling Food Costs
Controlling Food Costs
 
Beverage control
Beverage controlBeverage control
Beverage control
 
Food and beverage cost control
Food and beverage cost control Food and beverage cost control
Food and beverage cost control
 
FOOD AND BEVERAGE SERVICE PROCEDURES
FOOD AND BEVERAGE SERVICE PROCEDURESFOOD AND BEVERAGE SERVICE PROCEDURES
FOOD AND BEVERAGE SERVICE PROCEDURES
 
CLASSIC KITCHEN BRIGADE
CLASSIC KITCHEN BRIGADECLASSIC KITCHEN BRIGADE
CLASSIC KITCHEN BRIGADE
 

Similar to The control process

Food purchasing control
Food purchasing controlFood purchasing control
Food purchasing controlRajendra Nabar
 
#1FBC-INTRODUCTION.pptx
#1FBC-INTRODUCTION.pptx#1FBC-INTRODUCTION.pptx
#1FBC-INTRODUCTION.pptx
MasreshaA
 
Food production control i
Food production control iFood production control i
Food production control iRajendra Nabar
 
Food and beverage marketing
Food and beverage marketingFood and beverage marketing
Food and beverage marketingRajendra Nabar
 
Principles of Management MG6851 (Karthikeyan.I, AP, Mech, SRIT)
Principles of Management MG6851 (Karthikeyan.I, AP, Mech, SRIT)Principles of Management MG6851 (Karthikeyan.I, AP, Mech, SRIT)
Principles of Management MG6851 (Karthikeyan.I, AP, Mech, SRIT)
Karthikeyan I
 
Westport electric corporation
Westport electric corporationWestport electric corporation
Westport electric corporation
Bhaumik Patel
 
Chapter [vii] day 9 of 1st march 2015
Chapter [vii] day 9 of 1st march 2015Chapter [vii] day 9 of 1st march 2015
Chapter [vii] day 9 of 1st march 2015pyi kyaw lynn
 
A Two-Dimension Evaluation of CSA Practices. Evaluating Practices by Indicato...
A Two-Dimension Evaluation of CSA Practices. Evaluating Practices by Indicato...A Two-Dimension Evaluation of CSA Practices. Evaluating Practices by Indicato...
A Two-Dimension Evaluation of CSA Practices. Evaluating Practices by Indicato...
CCAFS | CGIAR Research Program on Climate Change, Agriculture and Food Security
 
Akuntansi Manajemen Edisi 8 oleh Hansen & Mowen Bab 16
Akuntansi Manajemen Edisi 8 oleh Hansen & Mowen Bab 16Akuntansi Manajemen Edisi 8 oleh Hansen & Mowen Bab 16
Akuntansi Manajemen Edisi 8 oleh Hansen & Mowen Bab 16
Dwi Wahyu
 
Audit report October 2017
Audit report October 2017Audit report October 2017
Audit report October 2017
Yvette Coetzer
 
Responsibility center mcs ch.4
Responsibility center mcs ch.4Responsibility center mcs ch.4
Responsibility center mcs ch.4
Citra Dewi
 
Accelerating the Benefits of Food and Bev Sustainability Programs
Accelerating the Benefits of Food and Bev Sustainability ProgramsAccelerating the Benefits of Food and Bev Sustainability Programs
Accelerating the Benefits of Food and Bev Sustainability Programs
Schneider Electric
 
ACCT 102 Ch14
ACCT 102 Ch14ACCT 102 Ch14
ACCT 102 Ch14
BHUOnlineDepartment
 
Unit 07
Unit 07Unit 07
ACC 212 Chapter 1
ACC 212 Chapter 1ACC 212 Chapter 1
ACC 212 Chapter 1
Angela Cipriano
 
Control of Quality
Control of QualityControl of Quality
Control of Quality
Aditya Singh
 
CONCLUSION Benchmarking and Performance Indicators for Wate Supply and Wastew...
CONCLUSION Benchmarking and Performance Indicators for Wate Supply and Wastew...CONCLUSION Benchmarking and Performance Indicators for Wate Supply and Wastew...
CONCLUSION Benchmarking and Performance Indicators for Wate Supply and Wastew...Borisav Milutinovic
 
Unit 5 inventory management processes
Unit 5 inventory management processesUnit 5 inventory management processes
Unit 5 inventory management processes
Ganesha Pandian
 
Quality Control Technique
Quality Control TechniqueQuality Control Technique
Quality Control Technique
Stephanie King
 

Similar to The control process (20)

Food purchasing control
Food purchasing controlFood purchasing control
Food purchasing control
 
#1FBC-INTRODUCTION.pptx
#1FBC-INTRODUCTION.pptx#1FBC-INTRODUCTION.pptx
#1FBC-INTRODUCTION.pptx
 
Food production control i
Food production control iFood production control i
Food production control i
 
Food and beverage marketing
Food and beverage marketingFood and beverage marketing
Food and beverage marketing
 
Principles of Management MG6851 (Karthikeyan.I, AP, Mech, SRIT)
Principles of Management MG6851 (Karthikeyan.I, AP, Mech, SRIT)Principles of Management MG6851 (Karthikeyan.I, AP, Mech, SRIT)
Principles of Management MG6851 (Karthikeyan.I, AP, Mech, SRIT)
 
Westport electric corporation
Westport electric corporationWestport electric corporation
Westport electric corporation
 
Chapter [vii] day 9 of 1st march 2015
Chapter [vii] day 9 of 1st march 2015Chapter [vii] day 9 of 1st march 2015
Chapter [vii] day 9 of 1st march 2015
 
A Two-Dimension Evaluation of CSA Practices. Evaluating Practices by Indicato...
A Two-Dimension Evaluation of CSA Practices. Evaluating Practices by Indicato...A Two-Dimension Evaluation of CSA Practices. Evaluating Practices by Indicato...
A Two-Dimension Evaluation of CSA Practices. Evaluating Practices by Indicato...
 
Akuntansi Manajemen Edisi 8 oleh Hansen & Mowen Bab 16
Akuntansi Manajemen Edisi 8 oleh Hansen & Mowen Bab 16Akuntansi Manajemen Edisi 8 oleh Hansen & Mowen Bab 16
Akuntansi Manajemen Edisi 8 oleh Hansen & Mowen Bab 16
 
Audit report October 2017
Audit report October 2017Audit report October 2017
Audit report October 2017
 
Responsibility center mcs ch.4
Responsibility center mcs ch.4Responsibility center mcs ch.4
Responsibility center mcs ch.4
 
Accelerating the Benefits of Food and Bev Sustainability Programs
Accelerating the Benefits of Food and Bev Sustainability ProgramsAccelerating the Benefits of Food and Bev Sustainability Programs
Accelerating the Benefits of Food and Bev Sustainability Programs
 
ACCT 102 Ch14
ACCT 102 Ch14ACCT 102 Ch14
ACCT 102 Ch14
 
Unit 07
Unit 07Unit 07
Unit 07
 
ACC 212 Chapter 1
ACC 212 Chapter 1ACC 212 Chapter 1
ACC 212 Chapter 1
 
Control of Quality
Control of QualityControl of Quality
Control of Quality
 
CONCLUSION Benchmarking and Performance Indicators for Wate Supply and Wastew...
CONCLUSION Benchmarking and Performance Indicators for Wate Supply and Wastew...CONCLUSION Benchmarking and Performance Indicators for Wate Supply and Wastew...
CONCLUSION Benchmarking and Performance Indicators for Wate Supply and Wastew...
 
Driving Performance
Driving PerformanceDriving Performance
Driving Performance
 
Unit 5 inventory management processes
Unit 5 inventory management processesUnit 5 inventory management processes
Unit 5 inventory management processes
 
Quality Control Technique
Quality Control TechniqueQuality Control Technique
Quality Control Technique
 

More from Rajendra Nabar

Training returns
Training returnsTraining returns
Training returns
Rajendra Nabar
 
Facilities design, décor and cleaning [compatibility mode]
Facilities design, décor and cleaning [compatibility mode]Facilities design, décor and cleaning [compatibility mode]
Facilities design, décor and cleaning [compatibility mode]Rajendra Nabar
 
Menu the foundation for control [compatibility mode]
Menu the foundation for control [compatibility mode]Menu the foundation for control [compatibility mode]
Menu the foundation for control [compatibility mode]Rajendra Nabar
 
Club management ood bac 5161 part-2
Club management ood bac 5161 part-2Club management ood bac 5161 part-2
Club management ood bac 5161 part-2Rajendra Nabar
 
Club management ood bac 5161 part 1
Club management ood bac 5161 part 1Club management ood bac 5161 part 1
Club management ood bac 5161 part 1Rajendra Nabar
 
Security and the lodging industry [compatibility mode]
Security and the lodging industry [compatibility mode]Security and the lodging industry [compatibility mode]
Security and the lodging industry [compatibility mode]Rajendra Nabar
 
The challenge of f&b operations [compatibility mode]
The challenge of f&b operations [compatibility mode]The challenge of f&b operations [compatibility mode]
The challenge of f&b operations [compatibility mode]Rajendra Nabar
 
Preventing theft of revenue
Preventing theft of revenuePreventing theft of revenue
Preventing theft of revenueRajendra Nabar
 
Monitoring beverage operations
Monitoring beverage operationsMonitoring beverage operations
Monitoring beverage operationsRajendra Nabar
 
Labor cost considerations
Labor cost considerationsLabor cost considerations
Labor cost considerationsRajendra Nabar
 
Establishing performance standards
Establishing performance standardsEstablishing performance standards
Establishing performance standardsRajendra Nabar
 
Controlling food sales
Controlling food  salesControlling food  sales
Controlling food salesRajendra Nabar
 
Controlling beverage sales
Controlling beverage salesControlling beverage sales
Controlling beverage salesRajendra Nabar
 
Beverage production control
Beverage production controlBeverage production control
Beverage production controlRajendra Nabar
 
Operations budgeting and cvp analysis
Operations budgeting and cvp analysisOperations budgeting and cvp analysis
Operations budgeting and cvp analysisRajendra Nabar
 
Tobacco
TobaccoTobacco

More from Rajendra Nabar (20)

Training returns
Training returnsTraining returns
Training returns
 
Facilities design, décor and cleaning [compatibility mode]
Facilities design, décor and cleaning [compatibility mode]Facilities design, décor and cleaning [compatibility mode]
Facilities design, décor and cleaning [compatibility mode]
 
Menu the foundation for control [compatibility mode]
Menu the foundation for control [compatibility mode]Menu the foundation for control [compatibility mode]
Menu the foundation for control [compatibility mode]
 
Club management ood bac 5161 part-2
Club management ood bac 5161 part-2Club management ood bac 5161 part-2
Club management ood bac 5161 part-2
 
Club management ood bac 5161 part 1
Club management ood bac 5161 part 1Club management ood bac 5161 part 1
Club management ood bac 5161 part 1
 
Security and the lodging industry [compatibility mode]
Security and the lodging industry [compatibility mode]Security and the lodging industry [compatibility mode]
Security and the lodging industry [compatibility mode]
 
The challenge of f&b operations [compatibility mode]
The challenge of f&b operations [compatibility mode]The challenge of f&b operations [compatibility mode]
The challenge of f&b operations [compatibility mode]
 
Training staff
Training staffTraining staff
Training staff
 
Preventing theft of revenue
Preventing theft of revenuePreventing theft of revenue
Preventing theft of revenue
 
Operations budgeting
Operations budgetingOperations budgeting
Operations budgeting
 
Revenue control
Revenue controlRevenue control
Revenue control
 
Monitoring beverage operations
Monitoring beverage operationsMonitoring beverage operations
Monitoring beverage operations
 
Menu pricing
Menu pricingMenu pricing
Menu pricing
 
Labor cost considerations
Labor cost considerationsLabor cost considerations
Labor cost considerations
 
Establishing performance standards
Establishing performance standardsEstablishing performance standards
Establishing performance standards
 
Controlling food sales
Controlling food  salesControlling food  sales
Controlling food sales
 
Controlling beverage sales
Controlling beverage salesControlling beverage sales
Controlling beverage sales
 
Beverage production control
Beverage production controlBeverage production control
Beverage production control
 
Operations budgeting and cvp analysis
Operations budgeting and cvp analysisOperations budgeting and cvp analysis
Operations budgeting and cvp analysis
 
Tobacco
TobaccoTobacco
Tobacco
 

Recently uploaded

Palestine last event orientationfvgnh .pptx
Palestine last event orientationfvgnh .pptxPalestine last event orientationfvgnh .pptx
Palestine last event orientationfvgnh .pptx
RaedMohamed3
 
The Roman Empire A Historical Colossus.pdf
The Roman Empire A Historical Colossus.pdfThe Roman Empire A Historical Colossus.pdf
The Roman Empire A Historical Colossus.pdf
kaushalkr1407
 
Embracing GenAI - A Strategic Imperative
Embracing GenAI - A Strategic ImperativeEmbracing GenAI - A Strategic Imperative
Embracing GenAI - A Strategic Imperative
Peter Windle
 
Language Across the Curriculm LAC B.Ed.
Language Across the  Curriculm LAC B.Ed.Language Across the  Curriculm LAC B.Ed.
Language Across the Curriculm LAC B.Ed.
Atul Kumar Singh
 
June 3, 2024 Anti-Semitism Letter Sent to MIT President Kornbluth and MIT Cor...
June 3, 2024 Anti-Semitism Letter Sent to MIT President Kornbluth and MIT Cor...June 3, 2024 Anti-Semitism Letter Sent to MIT President Kornbluth and MIT Cor...
June 3, 2024 Anti-Semitism Letter Sent to MIT President Kornbluth and MIT Cor...
Levi Shapiro
 
Overview on Edible Vaccine: Pros & Cons with Mechanism
Overview on Edible Vaccine: Pros & Cons with MechanismOverview on Edible Vaccine: Pros & Cons with Mechanism
Overview on Edible Vaccine: Pros & Cons with Mechanism
DeeptiGupta154
 
Introduction to AI for Nonprofits with Tapp Network
Introduction to AI for Nonprofits with Tapp NetworkIntroduction to AI for Nonprofits with Tapp Network
Introduction to AI for Nonprofits with Tapp Network
TechSoup
 
Operation Blue Star - Saka Neela Tara
Operation Blue Star   -  Saka Neela TaraOperation Blue Star   -  Saka Neela Tara
Operation Blue Star - Saka Neela Tara
Balvir Singh
 
Unit 8 - Information and Communication Technology (Paper I).pdf
Unit 8 - Information and Communication Technology (Paper I).pdfUnit 8 - Information and Communication Technology (Paper I).pdf
Unit 8 - Information and Communication Technology (Paper I).pdf
Thiyagu K
 
2024.06.01 Introducing a competency framework for languag learning materials ...
2024.06.01 Introducing a competency framework for languag learning materials ...2024.06.01 Introducing a competency framework for languag learning materials ...
2024.06.01 Introducing a competency framework for languag learning materials ...
Sandy Millin
 
Unit 2- Research Aptitude (UGC NET Paper I).pdf
Unit 2- Research Aptitude (UGC NET Paper I).pdfUnit 2- Research Aptitude (UGC NET Paper I).pdf
Unit 2- Research Aptitude (UGC NET Paper I).pdf
Thiyagu K
 
Francesca Gottschalk - How can education support child empowerment.pptx
Francesca Gottschalk - How can education support child empowerment.pptxFrancesca Gottschalk - How can education support child empowerment.pptx
Francesca Gottschalk - How can education support child empowerment.pptx
EduSkills OECD
 
How libraries can support authors with open access requirements for UKRI fund...
How libraries can support authors with open access requirements for UKRI fund...How libraries can support authors with open access requirements for UKRI fund...
How libraries can support authors with open access requirements for UKRI fund...
Jisc
 
Chapter 3 - Islamic Banking Products and Services.pptx
Chapter 3 - Islamic Banking Products and Services.pptxChapter 3 - Islamic Banking Products and Services.pptx
Chapter 3 - Islamic Banking Products and Services.pptx
Mohd Adib Abd Muin, Senior Lecturer at Universiti Utara Malaysia
 
678020731-Sumas-y-Restas-Para-Colorear.pdf
678020731-Sumas-y-Restas-Para-Colorear.pdf678020731-Sumas-y-Restas-Para-Colorear.pdf
678020731-Sumas-y-Restas-Para-Colorear.pdf
CarlosHernanMontoyab2
 
The geography of Taylor Swift - some ideas
The geography of Taylor Swift - some ideasThe geography of Taylor Swift - some ideas
The geography of Taylor Swift - some ideas
GeoBlogs
 
Adversarial Attention Modeling for Multi-dimensional Emotion Regression.pdf
Adversarial Attention Modeling for Multi-dimensional Emotion Regression.pdfAdversarial Attention Modeling for Multi-dimensional Emotion Regression.pdf
Adversarial Attention Modeling for Multi-dimensional Emotion Regression.pdf
Po-Chuan Chen
 
BÀI TẬP BỔ TRỢ TIẾNG ANH GLOBAL SUCCESS LỚP 3 - CẢ NĂM (CÓ FILE NGHE VÀ ĐÁP Á...
BÀI TẬP BỔ TRỢ TIẾNG ANH GLOBAL SUCCESS LỚP 3 - CẢ NĂM (CÓ FILE NGHE VÀ ĐÁP Á...BÀI TẬP BỔ TRỢ TIẾNG ANH GLOBAL SUCCESS LỚP 3 - CẢ NĂM (CÓ FILE NGHE VÀ ĐÁP Á...
BÀI TẬP BỔ TRỢ TIẾNG ANH GLOBAL SUCCESS LỚP 3 - CẢ NĂM (CÓ FILE NGHE VÀ ĐÁP Á...
Nguyen Thanh Tu Collection
 
The basics of sentences session 5pptx.pptx
The basics of sentences session 5pptx.pptxThe basics of sentences session 5pptx.pptx
The basics of sentences session 5pptx.pptx
heathfieldcps1
 
Polish students' mobility in the Czech Republic
Polish students' mobility in the Czech RepublicPolish students' mobility in the Czech Republic
Polish students' mobility in the Czech Republic
Anna Sz.
 

Recently uploaded (20)

Palestine last event orientationfvgnh .pptx
Palestine last event orientationfvgnh .pptxPalestine last event orientationfvgnh .pptx
Palestine last event orientationfvgnh .pptx
 
The Roman Empire A Historical Colossus.pdf
The Roman Empire A Historical Colossus.pdfThe Roman Empire A Historical Colossus.pdf
The Roman Empire A Historical Colossus.pdf
 
Embracing GenAI - A Strategic Imperative
Embracing GenAI - A Strategic ImperativeEmbracing GenAI - A Strategic Imperative
Embracing GenAI - A Strategic Imperative
 
Language Across the Curriculm LAC B.Ed.
Language Across the  Curriculm LAC B.Ed.Language Across the  Curriculm LAC B.Ed.
Language Across the Curriculm LAC B.Ed.
 
June 3, 2024 Anti-Semitism Letter Sent to MIT President Kornbluth and MIT Cor...
June 3, 2024 Anti-Semitism Letter Sent to MIT President Kornbluth and MIT Cor...June 3, 2024 Anti-Semitism Letter Sent to MIT President Kornbluth and MIT Cor...
June 3, 2024 Anti-Semitism Letter Sent to MIT President Kornbluth and MIT Cor...
 
Overview on Edible Vaccine: Pros & Cons with Mechanism
Overview on Edible Vaccine: Pros & Cons with MechanismOverview on Edible Vaccine: Pros & Cons with Mechanism
Overview on Edible Vaccine: Pros & Cons with Mechanism
 
Introduction to AI for Nonprofits with Tapp Network
Introduction to AI for Nonprofits with Tapp NetworkIntroduction to AI for Nonprofits with Tapp Network
Introduction to AI for Nonprofits with Tapp Network
 
Operation Blue Star - Saka Neela Tara
Operation Blue Star   -  Saka Neela TaraOperation Blue Star   -  Saka Neela Tara
Operation Blue Star - Saka Neela Tara
 
Unit 8 - Information and Communication Technology (Paper I).pdf
Unit 8 - Information and Communication Technology (Paper I).pdfUnit 8 - Information and Communication Technology (Paper I).pdf
Unit 8 - Information and Communication Technology (Paper I).pdf
 
2024.06.01 Introducing a competency framework for languag learning materials ...
2024.06.01 Introducing a competency framework for languag learning materials ...2024.06.01 Introducing a competency framework for languag learning materials ...
2024.06.01 Introducing a competency framework for languag learning materials ...
 
Unit 2- Research Aptitude (UGC NET Paper I).pdf
Unit 2- Research Aptitude (UGC NET Paper I).pdfUnit 2- Research Aptitude (UGC NET Paper I).pdf
Unit 2- Research Aptitude (UGC NET Paper I).pdf
 
Francesca Gottschalk - How can education support child empowerment.pptx
Francesca Gottschalk - How can education support child empowerment.pptxFrancesca Gottschalk - How can education support child empowerment.pptx
Francesca Gottschalk - How can education support child empowerment.pptx
 
How libraries can support authors with open access requirements for UKRI fund...
How libraries can support authors with open access requirements for UKRI fund...How libraries can support authors with open access requirements for UKRI fund...
How libraries can support authors with open access requirements for UKRI fund...
 
Chapter 3 - Islamic Banking Products and Services.pptx
Chapter 3 - Islamic Banking Products and Services.pptxChapter 3 - Islamic Banking Products and Services.pptx
Chapter 3 - Islamic Banking Products and Services.pptx
 
678020731-Sumas-y-Restas-Para-Colorear.pdf
678020731-Sumas-y-Restas-Para-Colorear.pdf678020731-Sumas-y-Restas-Para-Colorear.pdf
678020731-Sumas-y-Restas-Para-Colorear.pdf
 
The geography of Taylor Swift - some ideas
The geography of Taylor Swift - some ideasThe geography of Taylor Swift - some ideas
The geography of Taylor Swift - some ideas
 
Adversarial Attention Modeling for Multi-dimensional Emotion Regression.pdf
Adversarial Attention Modeling for Multi-dimensional Emotion Regression.pdfAdversarial Attention Modeling for Multi-dimensional Emotion Regression.pdf
Adversarial Attention Modeling for Multi-dimensional Emotion Regression.pdf
 
BÀI TẬP BỔ TRỢ TIẾNG ANH GLOBAL SUCCESS LỚP 3 - CẢ NĂM (CÓ FILE NGHE VÀ ĐÁP Á...
BÀI TẬP BỔ TRỢ TIẾNG ANH GLOBAL SUCCESS LỚP 3 - CẢ NĂM (CÓ FILE NGHE VÀ ĐÁP Á...BÀI TẬP BỔ TRỢ TIẾNG ANH GLOBAL SUCCESS LỚP 3 - CẢ NĂM (CÓ FILE NGHE VÀ ĐÁP Á...
BÀI TẬP BỔ TRỢ TIẾNG ANH GLOBAL SUCCESS LỚP 3 - CẢ NĂM (CÓ FILE NGHE VÀ ĐÁP Á...
 
The basics of sentences session 5pptx.pptx
The basics of sentences session 5pptx.pptxThe basics of sentences session 5pptx.pptx
The basics of sentences session 5pptx.pptx
 
Polish students' mobility in the Czech Republic
Polish students' mobility in the Czech RepublicPolish students' mobility in the Czech Republic
Polish students' mobility in the Czech Republic
 

The control process

  • 1. The Control Process Slide 1 / 32 BAC-4131 Food and Beverage Management Cost Control: The Control Process Wednesday, March 02, 2011
  • 2. Recap of the previous session What is average sale per customer? What is Directly variable cost? Describe non-controllable cost. Define sales mix. Explain Total sales per seat. Explain the features of labor cost. What is Basic food cost and Food cost %age. Slide 2 / 32 BAC-4131 Food and Beverage Management Cost Control: The Control Process Wednesday, March 02, 2011
  • 3. Learning objectives KCM Define control and discuss the significance in food and beverage management. Enlist the responsibility for control in the food and beverage operation. Give examples of control techniques used in F & B service operation. Prepare an operating budget. Imbibe the significance of the cost benefit ratio. Slide 3 / 32 BAC-4131 Food and Beverage Management Cost Control: The Control Process Wednesday, March 02, 2011
  • 4. Scope Introduction to Control. Cost Control. Control Techniques. Budgets. Preparing an operating budget. The Cost/Benefit ratio. Examples Control Measures. Slide 4 / 32 BAC-4131 Food and Beverage Management Cost Control: The Control Process Wednesday, March 02, 2011
  • 5. Introduction to Control Control is a process used by managers to direct, regulate, and restrain the actions of people so that the established goals of an enterprise can be achieved. The first step is to establish the objectives and goals. Slide 5 / 32 BAC-4131 Food and Beverage Management Cost Control: The Control Process Wednesday, March 02, 2011
  • 6. Examples of Goals Financial success. Operating the best restaurant in the city. Providing insurance for health to all employees. Implementation of safety policy. Reduction of overtime. Food cost control. Slide 6 / 32 BAC-4131 Food and Beverage Management Cost Control: The Control Process Wednesday, March 02, 2011
  • 7. Cost Control Cost control is defined as the process used by managers to regulate costs and guard against excessive costs. The process is chain oriented from Purchasing, Receiving, Storing, Issuing, preparing for sale and includes Training and scheduling. The process may vary from establishment to establishment. The goal is to eliminate excessive costs. Slide 7 / 32 BAC-4131 Food and Beverage Management Cost Control: The Control Process Wednesday, March 02, 2011
  • 8. Causes of excessive cost Two principal causes of excessive costs are inefficiency and waste: The following are the main places are where excessive costs are found: Material Labor Overhead expenses. Slide 8 / 32 BAC-4131 Food and Beverage Management Cost Control: The Control Process Wednesday, March 02, 2011
  • 9. Steps taken while administering sales control Ensuring that the serving staff know the proper prices of food. Ensuring that the staff documents the orders and maintains KOT’s in the proper manner. Ensure that service staff KOT’s and Kitchen KOT’s match. Keep a tab food quantity leaving the kitchen for service. Slide 9 / 32 BAC-4131 Food and Beverage Management Cost Control: The Control Process Wednesday, March 02, 2011
  • 10. Control Techniques Establishing standards. Establishing Procedures. Training. Setting examples. Observation, correction employee actions. Record keeping. Disciplining employees. Preparing and following budgets. Slide 10 / 32 BAC-4131 Food and Beverage Management Cost Control: The Control Process Wednesday, March 02, 2011
  • 11. Control Process The Control System is a term used to describe that collection of interdependent control techniques and procedures in use in a given food and beverage operation. Most control systems are based on Standard Operating Procedures. SOP’s used for financial operation are more stringent than the ones used for the general operation. Slide 11 / 32 BAC-4131 Food and Beverage Management Cost Control: The Control Process Wednesday, March 02, 2011
  • 12. Establishing standards Standards are defined as rules or measures established for making comparisons and judgments. The standards are usually set by the management which are useful in judging the extent to which results meet the expectations. Quality Standards. Quantity standards. Cost standards. Slide 12 / 32 BAC-4131 Food and Beverage Management Cost Control: The Control Process Wednesday, March 02, 2011
  • 13. Quality Standards Quality standards are used to define the degree of excellence of raw materials, finished products and , by extension, work. USDA standard Grading in food products 1 2 3 or A B C. Grading in case of alcoholic beverages with age. Grading done in employees against levels of skill. Slide 13 / 32 BAC-4131 Food and Beverage Management Cost Control: The Control Process Wednesday, March 02, 2011
  • 14. Quantity standards Quantity standards are defined as measures of weight, count, or volume used to make comparisons and judgments. Quantity Standard in food and beverage are for: Ingredients. Recipe. Portion size. Slide 14 / 32 BAC-4131 Food and Beverage Management Cost Control: The Control Process Wednesday, March 02, 2011
  • 15. Cost standard Standard Cost is defined as the cost of goods or services identified, approved, justified and accepted by the management. These costs are both idealistic and real value. The basic method of calculating standard costs in food and beverage services is Recipe calculation. Used for measuring effectiveness of the operation. Slide 15 / 32 BAC-4131 Food and Beverage Management Cost Control: The Control Process Wednesday, March 02, 2011
  • 16. Establishing procedures Procedures are methods employed to prepare products or perform jobs. Procedures are also standardized. Purchases. Receiving. Storage. Production. Service Slide 16 / 32 BAC-4131 Food and Beverage Management Cost Control: The Control Process Wednesday, March 02, 2011
  • 17. Training Training is a process whereby managers teach employees to how is work done given the standards and procedures established. Training is in-depth, structured, difficult, frustrating, time consuming and lastly cost intensive. Training produces tangible goods and vice versa bad or untrained staff are detrimental to the system. Slide 17 / 32 BAC-4131 Food and Beverage Management Cost Control: The Control Process Wednesday, March 02, 2011
  • 18. Setting Examples Example setting: Is a process of establishing standards and procedures. The procedures are a set of instructions presented in a sequential manner. Standards a benchmark for tasks either for every activity to be carried out in the operation. Procedures can be altered but standards remain uniform for an operation. Slide 18 / 32 BAC-4131 Food and Beverage Management Cost Control: The Control Process Wednesday, March 02, 2011
  • 19. Observing and correcting employees The result for not adhering to standards are evident from: Rise in Food and Beverage cost. Rise in consumption values. Inventory accumulation. Pilferage habit form. Setting a bad example. Slide 19 / 32 BAC-4131 Food and Beverage Management Cost Control: The Control Process Wednesday, March 02, 2011
  • 20. Records and reporting Usually are observation details and citations by the internal policy management and audit team. External audits for systems. Analysis of income statements. Careful analysis of requisitions. Careful analysis of inventories. Slide 20 / 32 BAC-4131 Food and Beverage Management Cost Control: The Control Process Wednesday, March 02, 2011
  • 21. Disciplining Employees Discipline is defined as an action taken to admonish, chastise or reprimand an employee for work performance or personal behavior incompatible with established standards. Discipline arrives when corrective action fails or if there is serious diversion from standards laid out. Used as a control technique. Slide 21 / 32 BAC-4131 Food and Beverage Management Cost Control: The Control Process Wednesday, March 02, 2011
  • 22. Budgets A Budget is defined as a financial plan and is described as a realistic expression of management goals and the objectives are defined in financial terms. Both Income and Expenses are budgeted. Cash flow budgets. Sales Budgets. Capital budget. Advertizing budgets. Slide 22 / 32 BAC-4131 Food and Beverage Management Cost Control: The Control Process Wednesday, March 02, 2011
  • 23. Budget in Food and Beverage Operating budget: Is a forecast of sales activity and an estimate of costs that will be incurred in the process of generating sales. A financial plan for the said period. Begins with the historical information or financial records. In case or organizational restructure and non availability of data the previous experience of managers and alternative sources Slide 23 / 32 BAC-4131 Food and Beverage Management Cost Control: The Control Process Wednesday, March 02, 2011
  • 24. Types of Budgets Static Budget: The one that is prepared assuming only one level of business activity for the period. It contains anticipated values about inputs and outputs that are conceived before the period in question begins. Flexible Budgets: Based on the actual costs for # of units sold in the current year and not on higher or lower estimates. BAC-4131 Food and Beverage Management Cost Control: The Control Process Slide 24 / 32 Wednesday, March 02, 2011
  • 25. BAC-4131 Food and Beverage Management Cost Control: The Control Process Slide 25 / 32 Wednesday, March 02, 2011
  • 26. Preparing an operating budget Segregation of fixed and variable costs: As salaries and wages are considered semi-variable costs they must be partitioned into their fixed and variable components. 60% of Rs. 1,85,000.00 which is Rs. 111,000.00 to be taken as fixed component of salaries & wages. 40 % of Rs. 1,85,000.00 which is Rs. 74,000.00 to be taken a variable component of salaries and wages. BAC-4131 Food and Beverage Management Cost Control: The Control Process Slide 26 / 32 Wednesday, March 02, 2011
  • 27. Preparing an operating budget 4. 60 % of employee benefits of Rs. 46,250.00 which is Rs. 27,750.00 are taken as the fixed component. 5. 40 % of employee benefits of Rs. 46,250.00 which is Rs. 18,500.00. BAC-4131 Food and Beverage Management Cost Control: The Control Process Slide 27 / 32 Wednesday, March 02, 2011
  • 28.
  • 29. The Cost/Benefit ratio The concept of the Cost/Benefit ratio is the relationship between costs incurred in instituting and maintaining a single control or control system and the benefits or savings derived by doing so. No control measure can be instituted without a cost. BAC-4131 Food and Beverage Management Cost Control: The Control Process Slide 29 / 32 Wednesday, March 02, 2011
  • 30. Examples Control Measures Lower Payback control measures: Relocation of cashier’s desk. Locking of front and back doors. Installing a modern time clock. Higher payback control measures Installing new locking system. Hiring new Food and Beverage controller. Incorporation of radical stores procedures. BAC-4131 Food and Beverage Management Cost Control: The Control Process Slide 30 / 32 Wednesday, March 02, 2011
  • 31. Considerations before implementing a control systems Quantifiable and non Quantifiable effects. Time required. Immediate and long term benefits. Accuracy. BAC-4131 Food and Beverage Management Cost Control: The Control Process Slide 31 / 32 Wednesday, March 02, 2011
  • 32. Questions  Comments BAC-4131 Food and Beverage Management Cost Control: The Control Process Slide 32 / 32 Wednesday, March 02, 2011