IFWA 1217 Food Production and Planning

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IFWA 1217Food Production and Planning

• Virginia Stipp Lawrence, MHM

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Welcome!

• Todays Notes
• Cost Control
• Standardized Recipes (introduction)

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• Cost Control -
• Calculate Actual Cost Convert to Cost
• Compare Actual Cost To
• Industry Average
• Previous Actual Cost (Past Income Statements)
• Operating Budget (Estimated Cost )
• Specific Standard For Your Company
• Specific Standard For Your Property

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• Variance From The Standard
• First Decide If The Variance Is Significant
• Is Standard Cost Greater Than Actual Cost?
• Is Actual Cost Greater Than Standard Cost?
• What Is The Percentage Variance?
• What Is The Dollar Variance?
• How Much Of A Variance Is Acceptable To Your
  Company?

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• Why Is There A Significant Variance?
• There Are Many Possible Explanations
• The Problem(s) Can Usually Be Traced To
• Arithmetic Error (Sales Revenue Or Costs)
• Unexpected Waste
• Incorrect Portioning
• Purchases Are Off-Spec.
• Improper Storage
• Stealing

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• Correcting The Variance
• How Much Time/Effort Do You Want To Spend?
• How Important Is The Problem?
• How Specialized Is The Problem?
• Are You Sure Youve Isolated The Right Problem?
• Is The Corrective Action Easy To Track?

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• Correcting The Variance
• How Much Time/Effort Do You Want To Spend?
• How Important Is The Problem?
• How Specialized Is The Problem?
• Are You Sure Youve Isolated The Right Problem?
• Is The Corrective Action Easy To Track?

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• Management Objectives to Control
• Sales Revenue
• Profit
• Cost Restrictions
• Growth
• Guest Satisfaction
• Employee Satisfaction
• Other Constituencies Satisfaction
• Obligations to the Industry
• Obligations to the Community

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• The Control Process
• Establish Standards Cost, Quality
• Determine Actual Results
• Compare Standards To Actual Results
• Determine If there Is A Significant Variance
• Corrective Action
• Revise Standards If Necessary

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• The Effective Control Process
• Measurable, Objective Standards
• Meaningful, Realistic Standards
• Provides Feedback
• Accurate
• Timely
• Consistent
• Tracks The Right Things
• Tracks The Most Important Things
• Cost Effective
• Practical And Appropriate For The Type Of
  Operation
• Flexible
• Provides Specific Information
• Establishes Authority And Responsibility

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• Cost Control and Menu Planning
• Menu Planning Is The First Control Point In The
  Restaurant Operation
• Other Control Points Are
• Purchasing
• Receiving
• Storing
• Issuing
• Preparing
• Cooking
• Holding
• Serving
• Guest Interaction, E.G., Cash Collection
  Customer Satisfaction Etc.

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• Major Factors Affecting Menu Planning
• Layout And Design Of The Facilities
• Availability Of Food And Beverage Ingredients
• Type Of Equipment
• Labor
• Budget
• Customer Needs And Desires/Trends

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• Types Of Menus
• Day Part Menus (Meal Part)
• Cycle Menus
• Drink Lists
• Dessert Menus
• Daily Menus
• A La Carte Menus
• Fixed Price Menus
• Down-Time Menus
• Casual Menus
• Table Top Displays
• Catering Menus
• Room Service Menus
• Café Menus
• Interactive Menus

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• Truth In Menu Misrepresentations That Should Be
  Avoided
• Quantity
• Quality
• Price
• Brand Name
• Product Identification
• Point Of Origin
• Merchandising Terms
• Means Of Preservation
• Means Of Preparation
• Illustrations/Graphics
• Nutrition

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Food Production and Planning

• April 10,2006
• Objectives for Today
• 1. Review Menu Pricing Methods
• 2. Review Controls Standards
• 3. Review Standardized Recipe Concepts
• 4. Complete Standardized Recipe handout
• Reminders
• Homework 4 is due next week

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• Menu Pricing
• Subjective Methods
• Reasonable Price (Usually Copying the
  Competitions Prices)
• Highest Price
• Loss Leader
• Lost Leader (delete)
• Intuitive (Trial And Error)

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• Objective Method Used To Price The Regular
  Restaurant Menus - Multiple Method
• Cost Out Menu Items -- use ingredients method,
  prime ingredient method, or mark-up method
• Ingredient Method each ingredient is costed
  added together
• Prime Ingredient MethodThe formula is to add the
  cost of labor and cost of food, add a percentage
  for profit. This method is good for dishes that
  require a lot of preparation.
• Mark Up Methodeach ingredient has food cost
  percentage added to it or cost is just multiplied
  by three (factor method) not including labor or
  other costs
• Multiply Cost By 3 to 7
• Check Out The Competition
• Adjust Multiple, If Necessary
• Do Menu Engineering Analysis
• Adjust Multiple Again, If Necessary

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• Objective Method Used To Price Catering Menus -
  Thirds Method
• 1/3 Cost Of Food, Beverage, Other Supplies
• 1/3 Cost Of Labor, Overhead
• 1/3 Profit
• Aggravation Factor?
• Shoulder Periods/Down Time?

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• Objective Method Used To Price Catering Menus -
  Contribution Margin Method
• Calculate Average CM Needed, Per Guest (This is
  equal to all expenses -- except FB -- plus net
  profit, per guest)
• Calculate Cost Of Food And Beverage, Per Guest
• Add Together To Determine Price, Per Guest

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• Other Pricing Procedures
• Pricing Food And Beverage Daily Specials
• Pricing All-You-Can-Eat (Drink) Items
• Pricing Merchandise
• Pricing Sales Promotions
• Corkage Fees-bringing in your own bottle
• Pricing Entertainment
• Pricing Take-Out, Delivery Items

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• Purchasing and Controls
• Security Problems In Purchasing
• Kickbacks
• Fictitious Suppliers
• Unintentional/Intentional Errors
• Off-Spec Products
• Getting Proper Credit
• Other Buyer Dishonesty
• Receiving Wrong Products

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• Receiving Controls
• Compare Shipment To Copy Of Purchase (Order)
  Record
• Compare To Copy Of Invoice
• Check Quality
• Check Quantity
• Check Expiration Dates
• Spot Check AP Prices
• If Shipment Acceptable, Sign Invoice, Keep Copy
• If Unacceptable, Return And/Or Get Credit Slip
• Move Directs To Production
• Move Stores To Warehouse For Later Issue
• Update Inventory File in Computer
• Update AP Prices in Computer
• Update Bar Codes in Computer
• Complete Necessary Paperwork
• Send Paperwork To Office
• Keep back Up Files/Paperwork
• Security Problems In Receiving
• Off-Spec Products

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• Storage Controls
• Determine Which Items To Track (ABCD)
• Separate Directs From Stores
• Determine Which Areas/Items Require Tight
  Controls
• Limited Access
• Proper Locking System
• Practice FIFO Inventory Rotation
• Controlled Temperature/Humidity
• Follow Health District Guidelines To Avoid
  Spoilage/Quality Deterioration
• Arrange Inventory Conveniently

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• Maintaining Cost And Quality
• Specifications
• Recipes
• Portion Costs
• Yields
• Portion Sizes
• Glass Sizes
• Ice Sizes

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• Other Production Controls
• Track Expensive Issues And Directs
• Keep Training Up-To-Date
• Watch Waste (Paper Products, Linen)
• Watch Over-Portioning
• Make Sure To Use Correct Qualities
• Use EDR, Not Eating-On-The-Job
• Match Issues With Sales And Mistakes
• Watch Crossover Problems On Prep Lines When
  Planning Menus
• Have Appropriate Equipment/Tools
• Try To Use Leftovers
• Lock Up In-Process Inventory When Closed
  (Especially At the Bars)
• Try To Hire The Correct Personalities

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• Serving Controls
• Service Is Affected by
• Type Of Menu
• Type Of Production
• Style Of Service Required
• Layout And Design
• Communication Flow
• Degree Of Cooperation

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• Service Control Factors
• Timing Of Service
• Accuracy
• Upelling, Suggestive Selling, Consultative
  Selling
• Keep It As Simple As possible
• Stock Side Stands Adequately
• Maintain High Seat T/O
• Track Expensive Foods/Beverages Served
• You Must Have An Expediter
• (A Food Checker Is Uncommon These Days)
• Allocate Stations Appropriately
• Determine Optimal Station Size
• Determine Optimal Tip/Tip-Out/Auto-Grad. Systems
• Get The Right Computer System

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• Computerized Service Systems
• At Very Least, You Need An ECR
• Preferably You Will Have A POS System, With Touch
  Screen Capability And As Much Flexibility As You
  Need And Can Afford
• Make Sure The System Is Correct, That It Meets
  Your Needs

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• Standardized Recipes

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Food Production and Planning

• Standardized Recipes

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Goals and the Standard Cost

• Standard costs are one of the most important
  control tools within F B operations.
•  
• The standard cost 
•         that you establish, defines the expected
  cost.  
•         acts as a goal. 
• You can establish standards for
•         the operation as a whole  
•         each individual profit(cost) center
•         foods alone  
•         beverages alone  
•         each meal period  
•         each particular menu  
•         each food group on the menu  
•         each specific menu item
• The more specific your information (your
  standard) is 
•         the more useful for control purposes.  
•         the more timely and costly to develop,
  maintain and use.

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Control Tools

• First create the menu.
• Based on the menu
•  
• there are 5 (five) control tools to use in
  determining standard food and beverage costs
•  
• The Five Control Tools
• 1. Standard Purchase Specifications
• 2. Standard Recipes
• 3. Standard Yields
• 4. Standard Portion Size
• 5. Standard Portion Costs

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Review-What is a Standardized Recipe?

• is a detailed formula for producing each menu
  item, food and beverage.
• you need precise records of
•  
• a) ingredients
• b) amounts
• c) procedures.
•  
• A standardized recipe is a customized recipe
  developed by a particular establishment
  describing exactly how they want a dish to be
  prepared, including specifications of the
  necessary tools and equipment, the time and
  personnel involved, and ideally a picture of the
  item as desired for service.

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• The standardized recipe
• should include all relevant information right
  down to the garnish (if any), plate size and
  plate presentation.
•  
• A recipe out of a cook book is NOT a standardized
  recipe, because
• . . . equipment varies from place to place.
• identical equipment performs differently from
  place to place.
• utensil availability may vary.
• interpretations required "golden brown",
  "moderate heat", "cook until done
• raw food products (ingredients) may vary in
  terms of "types",
• flavor, size, and availability.

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Developing a standardized recipe

• 12 steps
•  
• 1 A) Talk through the process with the preparers
  (cooks, bartenders) as you observe and take
  detailed notes.
• 1 B) Find a recipe that you would like to use
  (existing files, food magazine, mothers files . .
  .)
•  
• 2)Check if you have the necessary tools and
  equipment, i.e., is it at all feasible for you to
  prepare, or do new purchases have to be made?
•  
• 3) Cost it out
• -is it feasible for your market?
• -is it worthwhile to produce, i.e., is
  it profitable.
• -loss leader?
•  
• 4)Try it out in its original format.
• Is it OK?
• Evaluate Appearance, tenderness,
  texture, flavor, overall quality . . .
•  
• 5)Convert the recipe to your standard size,
  specifying portion size,yield and number of
  portions.
•  
• 6)"You" make the converted recipe.

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• 7) Make any desired or necessary changes.
• 8) Make the batch/converted recipe at minimum 3
  times
• is it consistent?
• are the flavors and other
  characteristics the same?
• is it functional to produce in this
  size?
•  
• 9)Put into your standardized recipe format.
•  
• 10) Have your preparation employees prepare
  (recreate) it according to the standard format.
• Evaluate, adjust, change/clarify
  directions.
•  
• 11) Train your preparation staff.
•  
• 12) File and/or start using.
•  
• Keep records of
•         popularity
•         reproducibility

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• Standardized Recipe-
• Pecos Chicken Salad