Lecture Food and beverage cost control (5th Edition): Chapter 5 - Dopson, Hayes, Miller 

Chapter 5 - Monitoring food and beverage product costs. This chapter presents the following content: Cost of sales, computing cost of food sold, computing cost of beverage sold, utilizing the cost of sales formula, reducing the cost of sales percentage, technology tools.

Chapter   5

Managing the Food and  Beverage Production 

Process

Figure 5.1 Production Schedules

Menu Item

Sales Forecast

Prior-Day Carryover

New Production

Total Available

# Sold

Carry over

Special Instructions: Thaw turkeys for Sunday preparation

Production Manager: S Antony

Production Process

quality well when they are carried over – factor this into your decision on production

sheets listing all menu items

“as needed” basis

Figure 5.2 Storeroom Requisition

Unit Name: Scotto's Supper Club Requisition #: 0221

Date: 1/15

Item

Storage Unit

Requested Amount

Issued Amount Unit Cost

Total Cost

Rice 1 lb 5 lb 5 lb $ 0.25/lb $ 1.25 Broccoli 1 lb 30 lb 28.5 lb $ 0.90/lb $ 25.65 Rib Roast 1 lb 100 lb 103.5 lb $ 8.40/lb $869.40

To: Kitchen X Requisition Approved By: S.A.R

Bar Requisition Filled By: T.A.P

with management approval.

person removing food, beverages, or supplies from the storage area must sign, acknowledging receipt of the products

be returned to the storage area, and their return recorded

Figure 5.3 Liquor Requisition

Unit Name: Scotto's Supper Club

Tanquery 4 750 ml P.O.F S.A.R

Peach Schnapps 2 1,000 ml P.O.F S.A.R

Seagram’s 7 3 750 ml P.O.F S.A.R

Jack Daniel’s 2 750 ml P.O.F S.A.R

Absolut Vodka 8 1,000 ml P.O.F S.A.R

Total Empties 25

Figure 5.4 Wine Cellar Issues

Number

of Bottles Check # Removed by

2 Glen Ellen Cabernet Sauvignon 2003 1 60486 L S.J

3 Barton & Guestier Medoc 1999 1 Manager’s “comp” S.A.R

4 Copperridge Cabernet Current Stock 1 Kitchen S.A.R

Remarks: #4 Requested by Chef 1/1

#6 House Wine Sent to Bar Area 1/1

Figure 5.5 Beverage Issues Recap

The Irish Pub Date: 1/1-1/10

enough to remain locked, it is reasonable to assume that each bottled wine issued should be noted

should be noted that the product has been directed to one of these two locations rather than having been assigned to a guest check number

used to form the basis for the six­column cost 

estimate

Figure 5.6 Six-Column Beverage Cost Estimate

Beverage Cost

Date Today To Date Today To Date Today To Date 1/1 $ 945.00 $ 945.00 $1,450.22 $1,450.22 65.2% 65.2%

Issues Today Sales Today  =  Beverage Cost Estimate Today

Issues to Date Sales to Date  =  Beverage Cost Estimate to Date

and valuation of all inventory on hand is taken at the close of  each accounting period.

Figure 5.7 Bin Card

­ Category B items are those that make up 10% to 15% of the 

inventory value and require only routine control and record  keeping.

­ Category C items make up only 5% to 10% of the inventory value. 

 These items require only the simplest of inventory control systems.

Figure 5.8: ABC Inventory Analysis on Selected Items

Usage

Purchase Price

Monthly Value

Category

Precut New York Strip Steak 300 lb $ 7.50/lb $2,250.00 A

8-Ounce Chicken Breasts (Fresh) 450 lb 2.10/lb 945.00 A

Crushed Red Pepper 1 oz 16.00/lb 1.00 C

Dried Parsley 4 oz 4.00/lb 1.00 C

products be drawn at any given point.  A common guideline is:

Figure 5.9 Guide to Managing ABC Inventory Items

Category Inventory Management Techniques

A

1 Order only on an as needed basis

2 Perpetual inventory on a daily or, at least, weekly basis

3 Have clear idea of purchase point and estimated delivery time

4 Conduct monthly physical inventory

3 Review status quarterly for movement to category A or C

4 Conduct monthly physical inventory

C

1 Order in large quantity to take advantage of discounts

if item is not perishable

2 Stock constant levels of product

3 Conduct monthly physical inventory

Figure 5.10 Inventory Recap

Unit Name: Scotto's Supper Club Date: January 31

Meat Seafood Dairy Produce Other Total Beginning

Figure 5.11: Food Cost Category %/Proportion

Figure 5.12 Prime Ribs

Effect of Over-Cooking on Portion Cost of

50 Pounds (800 ounces) of Roast Beef 50# Cost = $400

Preparation State Ending Weight (oz.) # of 8-Ounce Portions Portion Cost

Figure 5.13 Frozen Corn

Corn Portion Cost Chart

@ $2.80 per 3-lb Box Number of Portions

per 3-lb Box

Portion Size (oz.)

Portion Cost (cents)

per­portion basis.

greater choice in automated equipment to help with controls

rather than the number of drinks, can be controlled

served, the bottles should be marked and the empties made available for inspection by either the guest or the banquet captain

the preparation of a product and the collection of 

money for its sale, the opportunity for theft is greatly increased

products from the premises, since few kitchen 

production workers also handle cash

Figure 5.14: Standardized Recipe Cost Sheet

Unit Name: Steamer’s

All ingredients weighed as edible Portion Size: 8 oz

Figure 5.15: Ingredient Conversion Table

Pepper: 4.20 tablespoons 1 ounce

Common Can Sizes

*Spices have different conversions based on their individual weights

Figure 5.16: Butcher’s Yield Test Results

AP Amount Tested: 8 lb

Price per Pound AP: $3.60

Yield test performed by: L D

Product Costs

particular yield% when purchasing an item, you can proceed as follows:

tabled information related to trim and loss rates for standard products they carry

EP Required = AP Required x Yield %

AP Price per pound

Product Costs

activities have on the environment in terms of the amount of greenhouse gases (carbon dioxide) 

produced

      Total Sales       =   Attainable Product Cost %

Figure 5.17 Attainable Food Cost

Unit Name: Steamer’s

Prepared by:J M

Item

Number Sold

Attainable Portion Cost Total Cost

Menu Price

Figure 5.18 Acceptable and Unacceptable Variance

Item

Actual Cost

Attainable Cost

Efficiency Ratio

Dollar Variance

Percentage Variance

Reducing Overall Product Cost Percentage

Reducing Overall  Product Cost Percentage

Figure 5.19 Impact of Drink Size on Liquor Cost Percentage at Constant Selling

Price of $5.00 per Drink

Drink Size

Drinks per Liter

Cost per Liter

Cost per Drink (cents)

Sales per Liter

Number Sold

Total Sales

Cost per Drink

Total Cost

Liquor Cost %

production use include those that can help both you and your  production staff members: