Académique Documents
Professionnel Documents
Culture Documents
Management
Best Practice
Manual
A recipe for success
Index
Section 1 Management Overview
!
Questions
Section 2 Planning
!
Menu Costing
Shopping Basket
Profit Maximisation
Budgeting
2
Par Stocks
Must Stocks
Storage
Section 4 People
!
People
Colleague Feeding
Revenue Control
Reports
Covers Definition
Food Tracker
Stock Taking
Sharing Information
Section 6 Appendices
!
Management Overview
!
Questions
Objective
To provide solutions and tools to effectively manage
hotel food cost:
Making Food Cost Management A Way of Life.
Outcome
This manual will allow the hotel to develop a systematic
approach to food cost management that will bring consistent,
controlled and planned profitability.
To separate the food operations process into component parts and give
clear operational procedures for each part.
A lot of our Chefs are recruited from smaller hotels or restaurants where
formal food costing is not important to the business.
Chefs control the biggest cost budget after payroll but are given little or
no training and assistance in how to do it.
Sales
Purchases
Cost
2000
119.2m
34.4m
28.88%
2001
123.7m
35.3m
28.54%
2002
122.5m
37.2m
30.39%
After payroll, food purchase is our biggest operating cost of sales. Therefore it is
important that tight controls and tested methods exist in order that the company
maximizes profitability.
Frightening Scenario
It is human nature that processes can lapse for various reasons such as
sickness, holidays and new staff appointments etc. It is also realistic to
assume that we do not do things right all of the time so imagine if the
following revenue was not raised at each HUKI hotel every day of the year.
1 x Exclusive breakfast due to Fidelio meal plan report or guest key card not
being checked.
1 x TDH dinner due to Fidelio meal plan report or guest key card not being
checked.
1 x Extra banqueting dinner due to an extra delegate arriving late.
If we use an average selling price of 10.50 for breakfast, 21.95 for dinner
and a banqueting menu of 29.00 across the 77 hotels in the Hilton portfolio,
we would be losing net sales of: -
1.725m
For your hotel this could mean a minimum of 22.500 p.a. lost sales
and 6.750 unattributed costs.
Management Overview
Menu Costing
Stores
HR Manager
F&B/FS Manager
x
Head Chef
Financial Controller
General Manager
x
x
x
x
Shopping Basket
Profit Maximisation
Ordering
Budgeting
Storage
People
Staff Feeding
Revenue Control
Reports
x
x
Covers Definition
EPOS Management
Food Tracker
Par Stocks
Must Stocks
Stocktaking
x
x
10
It is Best Practice that Banqueting menus should not be sold under their
costed price. Therefore if a customer wishes to purchase at a given selling
price the Chef should be consulted to devise and cost a separate menu.
Best Practice is for the staff food to come from the public menus.
It is Best Practice that the hotel works with a recorded Par Food Stock. If
relevant this should be per outlet. Par Stocks should be based upon a
maximum of 7-9 days trading per average.
11
It is Best Practice that as a minimum all Meat, Fish and Vegetables are
weighed on delivery.
It is Best Practice that the Head Chef has overall control and is fully
responsible for purchasing and stores.
It is Best Practice that invoices are not paid until Credit Notes are
received.
It is Best Practice that all kitchen personnel are trained on this manual.
It is Best Practice that contracts are signed for minimum numbers, and
that minimum numbers are charged without fail.
It is Best Practice that as a minimum all red sections of the Food Cost
Management Action Checklist.
12
13
Section
Menu Costing
Budgeting
Ordering
Storage
EPOS Management
Revenue Control
Profit Maximisation
Staff Feeding
Food Tracker
Par Stocks
Stocktaking
Shopping Basket
Yes / No
Throughout
Covers Definition
People
Reports
Must Stocks
14
Have I been able to solve all of my problems in the past without them
reoccurring?
Do all of my team understand how to manage food cost? Can I teach them
to manage it better?
Are enough team members involved in managing the food cost? Did I
know that so many people play a part?
Do I know the cost of each dish sold and are my menus costed?
The list could be endless but if you answered NO to any of these questions
then this manual could benefit you.
15
Planning
!
Menu Costing
Shopping Basket
Profit Maximization
Budgeting
16
Menu Costing
Menu or recipe costing is the key component of effective food cost management.
This applies to all food that is served whether it is a single item such as a
sandwich, single main course, restaurant buffet or indeed a breakfast buffet. You
need to know how much an item costs before you can effectively set a selling
price. Or indeed if you have a selling price, how much a dish needs to cost in
order to make a set profit margin.
Menus need to be costed to ensure that both profit is made and that customer
expectation of quality and standard is reached or exceeded. Therefore a balance
needs to be made between what is practical to put on the menu to achieve cost
and what is luxury (You can up sell to luxury?).
With differing sales mixes within all hotels due to the type of food offerings, it is
not the case where all food products sold will automatically achieve a planned
food cost. For example the costs in a fine dining restaurant will or might be
considerably higher than at banquets or breakfast.
Due to seasonal variations some products are not available all year round or
their price might be artificially inflated due to the fact that the product is
sourced from overseas. Menu costing needs to make allowance for this.
17
7) Ensure that all staff are trained to prepare dishes to the recipes of each
dish, and that the method is followed.
8) Banqueting meals should be costed in multiples of 10 portions for single
dishes such as, melon, chicken or steak etc, 50 portions for soups and
20/25 for pates and terrines.
9) Canaps should be costed in multiples of 20 portions minimum. (Note that
small canaps can be a high cost item due to preparation and content.
10) Common mistakes are over garnishing. This wastes food and will often
detract from the main part of the dish, as well as impacting on food cost.
Cost garnishes per 25/50 portions and divide down cost to single portions.
Nobody knows the cost of a single sprig of Rosemary or 2 slices of
cucumber!
11) Include in your costings an amount for wastage, (not to exceed 2%).
12) Include in your costings an amount for staff feeding, (not to exceed 3%).
13) Include in the cost of a STARTER and MAIN COURSE the cost of a
bread roll and butter.
14) Include with the cost of coffee and tea the cost of milk, sugar, mint, petit
four, biscuit or pastry (cost in multiples of 10).
15) Insist on minimum sales numbers for certain items. i.e. if you make a
terrine that contains 25 portions, 13 portions could be wasted (if not
resold) if you serve it to a dinner for 12.
16) Achievable food cost exercises need to be carried out on restaurant
breakfast, lunch and dinner buffets. (See achievable food cost exercises).
It is Best Practice that all menus are costed.
Method
Menu or dish costings should be made in multiples of 10 portions. This allows us
to gain an average, as however well people are trained and follow procedures
there will always be some variance or heavy handedness.
1) Gather ALL ingredients for 10 portions.
2) Itemise on menu costing sheet.
3) Give a weight or size to each item (kg, gram, bag, box etc). Be consistent
in your approach.
4) Cost each item on the basis of net raw weight. (See gross and net weights).
18
@ 2.55 / 225g
= 25.50
@ 0.225 / 75 g
= 2.25
@ 0.32 / 75 g
= 3.20
Tomatoes x 10
@ 0.15 / each
= 1.50
Mushrooms 25g x 10
@ 0.35 / 25g
= 3.50
@ 0.05/ portion
= 0.50
= 36.45
19
To calculate the selling price of the dish assuming a food cost percentage (%) of
30 % the selling price would be:
Food Cost x 100
--------------------30
3.645 x 100
---------------- = 12.15 net
30
You now have a net price. Before serving to the customer you must add VAT at
the current rate.
12.15 x 1.175 = 14.28.
Therefore in order to achieve a food cost of 30%, this example must be sold to
the customer for 14.28.
This process should be applied to all dishes whether singular or compound. If
you follow these simple steps your menu costing will be accurate.
After dish costing and dish preparation a photograph of the completed dish
should be taken and placed with the cost sheet.
It is Best Practice that a product photograph accompanies all menu-costing
sheets.
20
Breakfast
Room Service
Restaurant 1
Restaurant 2
Bar
Banqueting
Total
Sales Mix
(%)
Total Sales
Value ()
Outlet Food
Cost %
Total Food
Cost ()
20%
10%
25%
5%
5%
35%
10000
5000
12500
2500
2500
17500
50000
15
35
28
40
35
25
26
1500
1750
3500
1000
875
4375
13000
The total food cost percentage is reached by dividing food cost by total sales
and multiplying by 100. (See formulas).
Example: - If hotel As sales mix was to change as outlined below. Note what that
change in sales mix does to the change in food cost percentage based on the same
50.000 sales.
Breakfast
Room Service
Restaurant 1
Restaurant 2
Bar
Banqueting
Total
Sales Mix
(%)
Total Sales
Value ()
Outlet Food
Cost %
Total Food
Cost ()
30
5
25
25
5
10
15000
2500
12500
12500
2500
5000
50000
15
35
28
40
35
25
27.5
2250
875
3500
5000
875
1250
13750
It can be seen that because of the drop in banqueting revenue and the increase in
revenues from restaurant 2, that the food cost has risen for hotel A by 1.5% to
27.5%.
These are two basic examples that are related to constant revenues. Also to be
taken into consideration is the rise or fall in covers within a sales outlet. The
continuing variance of covers will also affect the cost of food sold.
21
For example 100 covers for breakfast at full spend of 14.50, generates net
revenue of 1234.00.
If the breakfast spend was 6.00 per cover, 100 covers would generate 510.63
net revenue.
The examples below highlight this.
Example: - Hotel B serves 6000 covers to achieve an average spend of 12.41.
Breakfast
Room Service
Restaurant 1
Restaurant 2
Bar
Banqueting
Total
Sales Mix
(cvrs)
Average
Spend ()
1750
500
2000
500
250
1000
6000
7.5
9.5
12.5
18
2.5
22
12.41
Total
Revenue
()
13125
4750
25000
9000
625
22000
74500
Outlet
F/Cost
%
15
35
28
40
35
25
26.78
Total
Cost
()
1969
1663
7000
3600
219
5500
19951
Breakfast
Room Service
Restaurant 1
Restaurant 2
Bar
Banqueting
Total
Sales Mix
(cvrs)
Average
Spend ()
1925
550
2200
550
275
1100
6600
6.75
8.55
11.25
16.20
2.25
20
11.17
Total
Revenue
()
12994
4702
24750
8910
619
22000
73975
Food
Cost per
Cover ()
1.125
3.326
3.500
7.200
0.876
5.500
3.325
Total
Cost
()
2165
1829
7700
3960
241
6050
21945
The food cost for hotel B has now risen to 29.66%, because of the movement in
business. (21945 / 73975) x 100.
Because of this, in order to achieve the same 26.78% food cost as in example 3
the Chef must try to save or adjust his overall cost by 2135.
In summary, you need to understand the rise and fall of sales mix in costs,
revenues and covers in order to explain fluctuations in food cost.
22
23
Method
1) The complete exercise will consist of quiet, moderate and busy service
periods. The hotel needs to work out what is an average amount of covers,
for a quiet, moderate and busy service. Once you have established these
averages, choose service periods where you will serve approximately this
number of covers.
2) All participating team members need to be involved and briefed on their
roles and responsibilities. Therefore good teamwork is required between
the kitchen, restaurant, F&B Management and control departments.
Decide before starting who will do what.
3) All food consumed during a service period needs to be given a value.
Therefore an opening and closing stock figure needs to be made to
calculate consumption. Values need to be given in the same manner as
individual dish costing.
4) All food items need to be counted to create an opening stock within the
department. Start with the simple things like sugar, butter, milk and
coffee. Moving on to cold buffet displays and finally hot dishes as they
leave the kitchen. Count in the same manner as you would when
stocktaking. Have previously prepared spreadsheets ready for counting.
5) As the buffet is replenished or extra items issued from stores, these items
need to be added to the stock sheets.
24
6) At the end of service count back in all food items that are left unconsumed by the customer. Give these items a value. This will be your
closing stock.
7) Calculate your opening stock, plus additions and your closing stock
figures to find your consumption. N.B. All food that is returned to the
kitchen to be used again is part of your closing stock. All wastage is part
of your consumption.
8) Establish your net food revenue for the service period. (Treat discounts
and complimentary as full price).
9) Now that you are in possession of your consumption and revenue you can
work out your food cost percentage.
Example.
Food Consumption
------------------------- x 100
Net Revenue
300.00
--------------1000.00
x 100 = 30%
Covers Served
Food Cost ()
Net Revenue
()
Food Cost %
50
133
350
38
125
303.75
843.75
36
250
459
1530
30
425
895.75
2723.75
32.88
25
You can see that the average cost of the lunch buffet for this restaurant is
32.88%, based on 3 exercises.
12) Costs will vary between services; therefore the more exercises undertaken
the more accurate your AVERAGE results will be. Agree the accuracy of
the results with the Financial Controller.
13) These exercises should be used as a guide to costing, so that the Chef is
aware of how much the buffet is costing to produce per service period. If
it is too high he needs to trim it back. However do not compromise on
standards.
14) N.B. where an a la carte menu is in operation during a buffet service. Do
not include the covers, revenue or food consumed for a la carte as this will
negate the result of purely counting the buffet.
26
A practical way of seeing if selling prices generate the hotel sufficient profit is to
carry out the following exercise.
Looking at historical data (Micros / EPOS System) and your anticipated menu
sales estimate how many individual menu items you will sell over a period (4
weeks).
Menu Item Estimated Sales
1
600
2
1200
3
1000
4
600
Total
3400
Selling Price
3.50
5.50
6.00
8.75
Now multiply each menu item sales mix percentage by a pre determined cost
percentage, as identified below to give a weighted cost percentage.
Menu Item
Sales Mix %
1
2
3
4
11
33
30
26
100
Weighted Cost %
2.75
14.85
9
7.8
34.4
This gives an overall weighted cost of 34.4%. Therefore, if the target is 30% cost
the selling prices will either have to be increased or the cost prices reduced.
Best Practice is for the Financial Controller to undertake this exercise to review
hotel selling prices against cost percentages.
27
If the hotel expects to have total food revenues of 100.000 next month and is
looking to achieve a 28% food cost then the Chef has only 28.000 to spend!
How often is the revenue forecast discussed by the General Manager, Financial
Controller, F&B and C&B Managers or Revenue Manager and Chef together?
Prior to the start of each month the Chef, F&B Manager, Storeman, Buyer,
Financial Controller etc. should hold a planning meeting. Remember again that
after payroll, food purchasing is the biggest cost for the hotel.
A planning meeting will enable you to do the following
1) Maintain correct stock levels of food to within 4 days.
!
28
Requirements
1) Precise information about menus and contents especially banqueting.
2) Precise information about house function numbers on a particular date.
3) Past history or trend data of sales in reference to
a) Last years sales
b) Sleeper density (double occupancy)
c) Local events and promotions
4) Current statistics a) Sleeper/ Breakfast ratio weekday and weekend
b) Sleeper / Dinner ratio - weekday and weekend
c) Sleepers that will eat in banqueting
d) Sleepers that wont eat (aircrew)
e) Sleepers that eat in Executive / Club Lounge
f) Inclusive Sleepers
g) Tours
5) Sales mix pattern do not just look at today look at the next 10 days and
adjust your plans accordingly.
6) The above statistics after forecasting revenues can be used to forecast
costs for food based on the restrictions imposed by the sales mix, then set
weekly spend targets based on revenue / cost percentage.
Example
If weekly food sales are 25000 and target food cost is 30%. Then the
Chef has 7500 to spend in the week.
7) Plan to sale particular menu items on a particular day to cut down
wastage. If a function is being served chicken with mushroom sauce, put it
on the restaurant buffet and serve it to the staff. Batch cooking is one of
the most effective cost and waste control measures. (See below).
Best Practice is for the staff menu to be the same as the restaurant or
banqueting buffets.
8) Plan to make use of cheaper cuts for buffets. Casseroles, pies and stews
are widely accepted by the customer, as it is what they will eat at home.
Remember when people are away from home they want something
familiar. Most customers are not used to gourmet cuisine.
29
Restaurant
Roasts
Soup of
day
Function 1
Function 2
Staff
Monday
Beef
Tomato
Melon
Chicken
Chasseur
Tom Soup
Lamb
Cutlets
Tom Soup
Chicken
Chasseur
Tuesday
Lamb
Vegetable
Veg Soup
Roast
Lamb
Terrine
Chicken
Chasseur
Veg Soup
Roast
Lamb
Gammon
Mushroom
Sm Salmon
Chicken
Kiev
Melon
Roast Cod
Melon
Chicken
Kiev
Rib of Beef
Carrot
Soup
Haddock
Turkey
Carrot
Soup
Carrot
Soup
Turkey
Pork
Bisque
Buffet
Buffet
Bisque
Pork
Turkey
Lentil
Lentil
Steak Pie
Buffet
Lentil
Steak Pie
Beef and
Chicken
Consomm
Pork
Steaks
Consomm
Pork
Steaks
Wednesday
Thursday
Friday
Saturday
Sunday
Note that the planner can be broken down into daily service periods and can
accommodate a number of functions. You will see that the staff are being
served the same food as the customers.
30
10) Look at ways that money can be saved by not compromising on quality.
Be imaginative!
11) Accurate recipe / dish costings
Always ensure that food forecasts are net of VAT.
Ideally the food and beverage team should be planning 2-3 months in advance.
By doing this, if you know that you will have a change in sales mix, therefore
probably meaning a change in cost mix, you will be able to re-cost or adjust
menu items and re-print outlet menus. This might be a good time to install
incentives or promotions.
Review
One of the most important areas of forecasting is review. At the end of each day
or week write down the actual number of covers served and the revenue taken. If
there is a difference to your forecast find out why?
If you have a variance to your weekly food cost estimates there should be
reasons, therefore you can investigate any overspend etc.
Reviews can help the team learn and develop. Reviews also allow us to use our
experience to plan better in the future.
Midweek demand for room service is particularly high when there are
major sporting events such as the Champions League on. Obtain a list of
fixtures and plan accordingly.
Make food cost and particularly wastage part of your daily reviews and
meetings. Put as much emphasis on it as you would payroll!
31
Starter
Soup
Main
Dessert
Coffee
Total
Cost ()
0.95
0.77
2.85
1.43
0.35
6.35
If 125 covers were to be served at the function the Chef would have 793.75
to spend in buying produce. (125 x 6.35).
! It is Best Practice that banqueting menus should not be sold under their
costed price. Therefore if a customer wishes to purchase at a given selling
price the Chef should be consulted to devise and cost a separate menu.
32
33
Chart.2.
34
Shopping Basket
In order to track the movement and fluctuation of price over a given period each
Head Chef, Financial Controller or F&B Controller should undertake a
shopping basket exercise.
The exercise will track the rise and fall in commodity prices and can be a tool in
setting menu selling prices, planning menu cost prices and assisting in explaining
food cost fluctuation.
It is Best Practice that the shopping basket exercise is carried out 3 monthly and
then at the input of new menus or new dishes.
Method
1) Choose a selection of ingredients (shopping basket).
2) Give a current market value. (This market value will be identified as the
starting point or 100%. On the second week or month the market values
of the same commodities will be established).
3) Calculate total cost of shopping basket.
4) On the second week do the same again. You now have 2 shopping basket
values.
5) These 2 values are then compared to each other in the form of a
percentage.
A rise in market prices will be expressed as 100%+ and have a negative effect on
cost price and a fall will be expressed as 100%- and have a positive effect on cost
price.
A minimum of 40 items should be used for the exercise and they should be
selected from commodities that have regular cost price movement (perishables).
Dry goods and goods that have a fixed annual price should not be used. Goods
with high volume and high price movement are particularly relevant. Consider
fish and vegetables out of season.
35
Example
Product
Unit
Value
Wk 1
()
Value
Wk2
()
Diff
(+/-)
()
Diff
(+/-)
(%)
Value
Wk3
()
Diff
(+/-)
()
Diff
(+/-)
(%)
Beef Fillet
Kg
9.00
9.25
0.25
2.70
9.15
0.15
1.6
Lamb
Fillet
Kg
8.50
8.50
0.00
0.00
8.34
-0.16
-1.9
Tomatoes
Box
13.00
14.50
1.50
11.53
14.75
1.75
13.46
Melons
Each
0.90
1.15
0.25
27.00
0.90
0.00
0.00
Bread
Loaf
0.45
0.45
0.00
0.00
0.45
0.00
0.00
Cheese
Kg
10.45
11.99
1.54
14.73
11.00
0.55
5.2
Potatoes
Kg
0.25
0.35
0.10
40.00
0.30
0.05
20
42.55
46.19
3.64
8.55
44.89
2.34
5.5
Total
We can see from the above example that food prices between week 1 and week 2
have risen by 8.55%. This is expressed as 108.55% to the starting point (week 1).
This means that our selected purchases are 8 % more expensive.
In week 3 prices have risen over week 1 by 5.5%. This is expressed as 105.5%.
(Please note that prices may also fall. If they fell by 5.5%, they would be
expressed as 94.5% of week 1).
Menus should be costed on week 1, therefore price rise and fall if significant
should be applied to menu price costing, in order that food cost profit can be
maintained or menu items changed. It is therefore correct to say that if prices
fall we will theoretically make a higher food cost profit. It is also correct to say
that if prices rise you should adjust your menu selling prices to reach the same
desired level of food cost %. On a weekly basis you should not expect significant
price fluctuation, however, over an extended period and due to seasonal
variations prices will go up and down.
36
Profit Maximization
Often popularity and profitability are confused. Menu items can be arranged on
a grid the so called Boston Matrix representing their performance with
regard to volume (popularity) and cash contribution (profit).
The Cash Cow: high sales and high profit contribution make this the ideal
product. It can be milked for cash, if cared for and fed regularly.
The Plough Horse: high sales and low profit contribution. It works hard but
the profits are not always immediately apparent; it will take time to reap the full
reward from this crop.
The Cuddly Panda: low sales but high profit. Lovable but elusive, it will
require careful study and special attention.
The Dodo: low sales and low profit. Probably extinct. Therefore, get it off your
menu.
High
Cash Cow
Dodo
Cuddly Panda
Popularity (sales)
Plough Horse
Low
High
37
Low Price:
Good Value
Evaluation
The Plough Horse
Tempting, but overpriced.
The Dodo
Low price, but uninteresting.
38
Promotions
Promotions should only be undertaken when there is an opportunity to make
incremental sales over and above normal business volumes or when you want to
drive cash cows and cuddly pandas to make incremental profits.
If you have a food cost management problem do not run a promotion if it means
buying in extra menu items over and above your norm. Promotions should be
staged from within the normal operation of the business.
The only proviso to this is when a new menu or menu items are being introduced
and a sales drive is required to initiate customer awareness.
Specials
Specials are items that the Chef is able to purchase at a more competitive oneoff price, that will facilitate the cash cow syndrome or menu items that need to
be sold before expiry dates which are cuddly pandas or dodos.
Do not put high sales and low profit plough horses on promotion.
39
Budgeting
As an outcome of the use of this Best Practice manual, food cost budgeting
should become easier and more accurate for the hotel. However, unless the
manual is used correctly it will not be an aid to budgeting.
When budgeting it is an unrealistic assumption that the food cost should remain
the same for every accounting period. Therefore, if for example the hotel is
looking to attain an annual food cost of 30% it is unrealistic to have 12
accounting periods saying that they will all be at 30% cost.
Food costs could vary dependant upon the hotel and time of year, from 18 35%
per period. Your budgets should reflect the monthly movement in sales mix. If it
does not your year end budgeted food cost will be impossible to achieve.
Your 30% total should be made up of 12 food costs of differing amounts!
When budgeting for the next financial year you should use all available data
from the EPOS, sales mix analysis, menu costing and profit maximization
exercises to set a realistically achievable budget that fits with your business
needs.
Take into account possible movements in rooms business mix. Hilton is rapidly
expanding its leisure market. Therefore, more and more sleepers will be on low
priced inclusive breakfast and dinner packages. If you do not react your food
cost will automatically move upwards.
40
Par Stocks
Must Stocks
Storage
41
Par Stocks
Par Stocks are one of the most effective tools in food cost management. A par
stock is the minimum number of any product that should be kept at any one time
for normal trading patterns.
It is Best Practice that the hotel works with a recorded par food stock. If relevant
this should be per outlet. Par stocks should be based upon a maximum of 4 days
trading per average.
All Hilton nominated food suppliers deliver at least twice a week.
Food product orders should be based on the forecast of customer consumption.
For standard products work out by monitoring consumption over a monthly
period and dividing by the number of days.
Example 1.
If you use 600 loaves of bread over 30 days you consume an average of 30 per
day. Build in a 10% error factor for unexpected rises in business and you should
hold 33 loaves. If you receive 3 deliveries a week then 231 loaves are required
weekly or 77 per delivery.
Food products requiring a par stock are, but are not limited to
a)
b)
c)
d)
e)
f)
Tinned / Dry
Frozen
Breakfast Goods such as Preserves and Bacon etc
Juices
Breads
Staple menu items such as Sirloin Steaks
Consider when setting par stocks what size or weight of product needs to be
purchased. Can a smaller size be bought or can it be purchased less frequently?
Review par stocks as business demand changes. i.e. Christmas or quieter periods
such as January. The Par Stock must be flexible depending on volumes and
menu sales mix forecast and time of year.
Micros sales information on mix and volume must be used regularly to check
actual consumptions.
Too much stock will lead to wastage. Too little will lead to panic buying or
customers not having the correct product available.
42
Must Stocks
For food the must stocks are items that appear daily on your menus. These
should adhere to specification for quality, consistency and contractual
requirements.
However you should question the amount that you order. If you only average
sales of 5 Fillet Steaks per night, do not order 20 per day.
Do not order separately for banqueting, restaurants and staff. Combine your
orders and try to negotiate a better price with the supplier.
Do not use it up after. Use it at the time! This saves cost!
Items that do not appear on your menu should not be purchased. Regularly
review invoices to see what is being bought.
It is Best Practice that if food is specified, ordered, received and stored by the
same person, that invoices and control measures are audited for irregularities at
least by-weekly.
Carefully consider the purchase and use of luxury items such as Caviar, Fois
Gras and Saffron etc. Can an alternative be used without compromising on
standards?
Remember that food cost profit should be the first consideration in menu
planning.
43
Order Sheets
Supplier Schedule
Success Criteria
a) All orders will fulfill the business requirements.
b) All commodities will be the best value for money.
44
45
Delivery notes
Temperature Checks
All deliveries must be checked against delivery notes and order sheets
to ensure that quantities and specification delivered match those that
are charged for. An appropriate set of scales should be available to
ensure all weights match delivery notes. Any deviations from the
delivery note should be recorded on a credit note / goods returned
note.
It is Best Practice that as a minimum all meat, fish and vegetables are
weighed on delivery.
Grade & Quality
46
Please refer to the food safety hazard analysis manual to ensure that all
health and safety regulations are being adhered to as outlined by Safety Risk
Management at Cadogan Square.
Success Criteria
a) Guests receive a continuous high standard of fresh produce.
b) Food health and safety regulations are adhered to.
c) Suppliers are meeting hotel business demands.
d) No leakage of monies due to non-conformity of prices, quantity and
quality by suppliers.
It is Best Practice that the Head Chef has overall control and is fully responsible
for purchasing and stores.
47
Storage
Aim
To ensure that there is an adequate supply of all food items maintained for
immediate use, with the minimum loss arising from either wastage or
spoilage.
Date Coding
All meat, poultry and fish items must be date stamped before storage
to ensure that items do not pass their sell by date. Be aware that it is
an offence under the Food Safety Act 1990 to not date code / stamp.
Date coding guns and labels can be purchased through a nominated
supplier recommended by Safety Risk Management at Cadogan
Square
Temperature Checks
Stock Rotation
Storage
Please refer to Food Safety Hazard Analysis Manual to ensure that all health
and safety regulations are being adhered to as outlined by Safety Risk
Management dept.
48
Success Criteria
a) Food health & safety regulations are adhered to.
b) Minimal wastage and spoilage of food produce.
49
50
Kitchen Closedown
At the end of each working day a formal kitchen closedown procedure should be
in place to ensure that not only food hygiene regulations are being adhered to but
also that food is correctly stored so it can be used the next day.
Ensure all food items are cling filmed, date stamped (with 2-day shelf
life) and refrigerated.
If any food is still left in the restaurant, i.e. soup, salad bar etc, make sure
that they are brought in and samples of appropriate foods have been
taken and recorded in the food sampling folder.
Record wastage.
51
Are the restaurant trained in the efficient use of the toaster and
coffee machine?
When you return goods to suppliers, do you always check that you
receive credit notes?
It is Best Practice that invoices are not paid until Credit Notes are
received.
52
Effect
Cure
Over Buying
Better Planning
Par Stocks for Items
Decrease Wastage
Higher Prices
Better Planning
Poor Storage
Quick Deterioration
Over Portions
Increased Usage
Poor Presentation
Stock Products
Work to Specs
Staff to Understand
Weights and Measures
Use Measured
Dispensers
A key task when looking to control wastage is to look at your most wasted or
biggest wasted items.
How often during a breakfast service do you check how much coffee
and bread is wasted?
Undertake a waste control exercise. Empty the refuse bins at the end
of service and analyse what has been wasted!
53
People
Balanced Scorecard
Colleague Feeding
54
55
TBS Training
Effective Food Cost Control should be included as part of the training and
review process within your department. As we have said being a Chef is not just
about cooking and hygiene. It should form a basis for more in depth training in
the future.
It is Best Practice that all kitchen personnel are trained on this manual.
Balanced Scorecard
It could be argued that effective food cost management is related to a balanced
scorecard approach as championed by the company. Success will be achieved by
placing equal importance on the four core values of
Each is a key-determining factor within your operation and each must take equal
importance within your operation.
And many functions that require basic chopping, cutting and slicing
56
Colleague Feeding
Aim
To ensure that quality and choice expectations of all our colleagues are met
and the cost of production can be greatly reduced through menu forward
planning. Staff feeding will be the same standard as that of our customers. A
fixed rotational menu will be applied having reflected time of year and ethnic
backgrounds. If your hotel is small and serves a limited amount of staff food
the matrix in the food forecasting and planning section should be applied.
Please contact Group Human Resources Department at Maple Court for
standards of staff food required and entitlements for all contract types
including live-in staff.
Food & beverage machines There are currently various machines available
from Coca Cola Enterprises Ltd. Call Group Purchasing Department at
Maple Court for the latest specifications and prices available.
Success Criteria
a) Colleagues are contented with choice and quality.
b) Viewpoint result constantly moving forward.
c) Minimum cost and wastage achieved.
It is Best Practice and the Hilton people standard that colleagues receive as a
minimum.
Lunch and Dinner a selection of hot and cold dishes are offered to
suit cultural tastes as appropriate and includes a vegetarian option.
All dishes are nutritious and wholesome. (Typical dishes include: meat
or fish with potato, vegetables, vegetarian options, salad items, cold
meats, cheeses, fresh bread and butter).
57
Revenue Control
Revenue Capture
Reports Schedule
Reports Index
Covers Definition
Food Tracker
Stocktaking
Sharing Information
58
Revenue Control
Aim
To ensure we are maximising all food revenue segments and any gross profits
associated with them and capturing all relevant data to enable analysis of our
business so that we can make strategic and informed decisions.
Epos Analysis
Promotions / Vouchers
Any food dishes that are discounted or are free of charge to the
customer should be tracked so the Accounts Office can charge the
cost to marketing expenses and credit the food stock account.
Management Account
Allocations
Retrospective Discounts
Allowances
59
Reports
Staff should examine these for every meal period to ensure that the
correct charge is raised to the correct guest.
Success Criteria
a) All HUKI Group discounts are being maximized through nominated food
suppliers.
b) All revenue is captured and gross profits are maximized.
c) Informed decisions can be made from accurate data capture.
d) Mystery customer result standards are achieved through correct billing.
Wastage and spoilage can be reduced from dishes that are proven sellers
All the above revenue control measures are Best Practice
60
Revenue Capture
To ensure that all food services provided to our guests are charged for it is
essential to put in place basic revenue capture measures. Many control
mechanisms are already set up within Fidelio and the various EPOS systems
within the company such as Micros and Remanco.
It is vital that EPOS systems are used to their full potential by ensuring every
employee has their own system key. This will enable management to track
training needs and sales performances by employee. It will also ensure that there
is a segregation of duties for departmental cashing up. Keys should be assigned
with the relevant system responsibilities per employee depending on job title and
position.
It is imperative to have an EPOS champion per hotel so that the system database
is current and correct for items and prices, otherwise use of open food &
beverage sales keys will occur, rendering any data analysis useless for
stocktaking, tracking sales trends, menu costing, menu engineering and staff
performance incentive schemes.
It is Best Practice that all dishes set up on the EPOS system match the hotel
menus and menu prices to eliminate the use of the open food key button.
Revenue is charged correctly and that all historical data is accurate and will
assist in making strategic business decisions based on fact.
The Management Team should monitor use of voids, open checks and cancelled
checks to eliminate any possible foul play and to ensure that staff can be
identified if they are having legitimate problems with using the system.
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Key Responsibilities
Below is a table listing employee responsibilities for the EPOS system.
Job Title
Waiter / Barman
Supervisor
Outlet Manager
Duty Manager
Night Auditor
User Level
Server
Supervisory
Management
Management
Management
Definition
Able to post and cash off
items on the system.
At end of shift can only
produce a report to
enable the balancing of
room charges and credit
cards. NOT CASH.
Able to post and cash off
items. Able to void
transactions. At end of
shift can only produce a
report to enable
balancing of room
charges and credit cards.
NOT CASH.
Able to post and cash off
items. Able to void
transactions. At end of
shift can produce a
report summary to
balance all payment
types.
Able to post and cash off
items. Able to void
transactions. At end of
shift can produce a
report summary to
balance all payment
types.
Able to post and cash off
items. Able to void
transactions. At end of
shift can produce a
report summary to
balance all payment
types.
62
63
Epos System
1. Are all menu items on EPOS system and correctly priced?
2. Are the Open Food & Beverage keys disabled?
3. Are reports generated and monitored for Voids, Open Checks etc?
4. Are all employees on system current and have relevant responsibilities?
5. Are there enough members of the Management Team with good system
knowledge in case of sickness or staff turnover?
6. Are departmental pay-ins authorized and checked by the Management Team
with no member of staff being able to reconcile their own cash takings?
7. Has the No Sale button been removed from the tills?
8. Are all items on system set up for the correct sales categories?
E.g. Is a cup of coffee coded to food sales?
9. Are daily saves completed by Night Audit?
10. Are touch screen pads in outlets user friendly for staff to use correctly?
Revenue Control
1. Are guests asked to produce proof of a signed room key card when ordering
items in the F&B outlets?
2. Are reconciliations carried out to ensure that revenue matches food orders
taken in the kitchen?
3. Are Meal Plan reports used to ensure correct charging of inclusive and
exclusive diners? Are these reports attached to departmental pay-ins so Night
Audit and Income Auditor can check them?
4. Are delegate numbers checked and recorded in the restaurant or meeting
rooms to ensure additional attendees are charged?
5. Are all complimentary items authorized with a Management signature?
6. Are all discounts recorded on a Revenue Deduction sheet and credited to Cost
of Sale account and debited to Expense accounts?
Reports
1. Is a Daily Food Cost Tracker sheet completed and issued daily to the
Management Team?
2. Is a Daily Actual Revenue & Covers report issued to the individual outlets
daily?
3. Is a Weekly and Monthly sales forecast issued to the individual outlets?
4. Is a Food Supplier Usage sheet completed and issued daily to the chef?
5. Is a monthly Food Cost result completed and issued to the chef with a full
breakdown of revenues, stock values and credits?
6. Is chef issued with a General Ledger Account (180 characters) report so he
can check all invoices coded, and credits given for the Food Cost of Sale account?
Miscellaneous
1. Does the closing stock value generated from the stock sheets match the figure
on the Balance Sheet?
2. Are all Food Invoice Batch headers signed and authorized in accordance with
64
Segregation of Duties?
3. Are prices updated regularly on the stock sheets to give a true valuation of the
closing stock value?
4. Is the chef assisted at month end by a member of the Management Team when
counting physical stock?
5. Have you checked that there are full menu costing sheets for every dish served
in the hotel and that these have been reviewed quarterly to ensure that they are
relevant?
6. Are all delivery notes, un-batched invoices & credit notes accrued at month
end into the Food Cost of Sale account?
7. Are all suppliers used by chef nominated?
8. Is there a good mix of use between the two nominated suppliers for a main
food grouping to ensure that the hotel is buying at the most competitive price?
E.g. Are the two nominated meat suppliers bidding for business with cheaper
prices than their competitor?
65
Reports
It is essential that as a business we are able to analyse all available data. This will
enable informed decisions to enhance our business. With such a diverse portfolio
of hotels encompassing many different food outlets and staff positions it would be
wrong to say that one solution will meet all needs. However the main
fundamentals of reporting will be very similar throughout the group.
The hotel should be using various reporting tools to help: a)
b)
c)
d)
e)
f)
g)
h)
The above are fundamental in controlling revenue and cost of sale and should be
readily available and utilised by as many departments as possible.
Unfortunately within the portfolio of hotels there are many different IT systems
and versions to control our food outlets such as Micros, Remanco, Fidelio F&B
and Uniwell, but all of these systems are capable of producing data to help run
the business.
The system manuals should be checked to see what is available and then a table
produced for what each hotels individual requirements are, who needs them and
at what time.
The following reports section list reports available on Micros. As stated above a
reports schedule should be drawn up and issued for other systems.
66
Financial Controller
Report Schedule
Title
Revenue Report
Off Line Payments
Food Discounts
Beverage Discounts
Outlet Transfers
Micros/Fidelio Balance
Revenue Centre Financial
Serving Period Financial
System Financial
Payment
Employee Closed Check Report
Frequency
Daily
Daily
Daily
Daily
Daily
Daily
Daily
Daily
Daily
Daily
Daily
Revenue Report
Off Line Payments
Food Discounts
Beverage Discounts
Outlet Transfers
Weekly
Weekly
Weekly
Weekly
Weekly
Micros/Fidelio Balance
Revenue Centre Financial
Serving Period Financial
System Financial Report
Major Group Cost Report
Family Group Cost Report
Weekly
Weekly
Weekly
Weekly
Weekly
Weekly
Revenue Report
Off Line Payments
Food Discounts
Beverage Discounts
Outlet Transfers
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
Content
Breakdown of revenue centres
Any off line payments used
Any discounts given on food
Any discounts given on beverage
Transfers between revenue centres
Revenue balances into Fidelio
Total days business by revenue centre
As above except by serving period
As above consolidated
All payments that have been used
See how checks are opened/closed
Weekly breakdown of revenue centres
Weekly summary of any off line payments
Weekly summary of any food discounts given
Weekly summary of any beverage discounts given
Weekly summary of transfers between beverage
centres
Weekly summary of balances in fidelio
Weekly summary business by revenue centre
Weekly summary as above except by serving period
Weekly summary as above except consolidated
Weekly breakdown of sales with attributed costs
Weekly breakdown of sales with costs in groups starters, main, sides etc
Monthly breakdown of revenue centres
Monthly summary of any off line payments
Monthly summary of any food discounts given
Monthly summary of any beverage discounts given
Monthly summary of any transfers between revenue
centres
Monthly summary of balances in fidelio
Monthly summary and business revenue centre
Monthly summary as above except by serving period
Monthly summary as above except consolidated
Monthly breakdown of sales with attributed costs
Monthly breakdown of sales with costs by group e.g.
starters/sides/mains
Monthly report showing by revenue centre menu item
costing
67
Chef
Report Schedule
Title
Frequency
Content
Food Discounts
Revenue Centre Financial
Daily
Daily
Food Discounts
Revenue Centre Financial
Major Group Cost Report
Family Group Cost Report
Weekly
Weekly
Weekly
Weekly
Food Discounts
Revenue Centre Financial
Major Group Cost Report
Family Group Cost Report
Monthly
Monthly
Monthly
Monthly
Monthly
Frequency
Content
Food Discounts
Beverage Discounts
Revenue Centre Financial
Daily
Daily
Daily
Food Discounts
Beverage Discounts
Revenue Centre Financial
Major Group Cost Report
Family Group Cost Report
Weekly
Weekly
Weekly
Weekly
Weekly
Food Discounts
Beverage Discounts
Revenue Centre Financial
Major Group Cost Report
Family Group Cost Report
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
68
Bars Manager
Report Schedule
Title
Frequency
Content
Beverage Discounts
Revenue Centre Financial
Daily
Daily
Beverage Discounts
Revenue Centre Financial
Major Group Cost Report
Family Group Cost Report
Weekly
Weekly
Weekly
Weekly
Beverage Discounts
Revenue Centre Financial
Major Group Cost Report
Family Group Cost Report
Monthly
Monthly
Monthly
Monthly
Monthly
Restaurant Manager
Reports Schedule
Title
Frequency
Content
Food Discounts
Beverage Discounts
Revenue Centre Financial
Daily
Daily
Daily
Food Discounts
Beverage Discounts
Revenue Centre Financial
Major Group Cost Report
Family Group Cost Report
Weekly
Weekly
Weekly
Weekly
Weekly
Food Discounts
Beverage Discounts
Revenue Centre Financial
Major Group Cost Report
Family Group Cost Report
Monthly
Monthly
Monthly
Monthly
Monthly
Monthly
69
Index
Daily Reports
-
Weekly Reports
Overview of reports and who should receive the reports
that can be pulled off by the Night Auditor at the end of the
week. (There are two additional reports from those pulled off
on a daily basis).
Monthly Reports
Overview of reports and who should receive the reports
that can be pulled off by the Night Auditor at the end of the
week. (There is one additional report from those pulled off
on a daily basis).
Miscellaneous Reports
Overview of additional miscellaneous reports, which can be
used by various Heads of Departments
70
71
Daily Reports
2.
3.
4.
5.
6.
7.
Report Name
Revenue Report - System Wide - Major
Group
OffLine Payments - System Wide
Food Discounts - System Wide
Beverage Discounts - System Wide
Outlet Transfers - System Wide
Micros/Fidelio Balance Report - System Wide
Revenue Centre Financial Report
8.
9.
10.
1.
To Whom
FC/Hotel Micros Project Mgr
(MPM)
FC
FC/Chef/F&B Mgr/Rest. Mgr
FC/F&B Mgr/Bars Mgr
FC
FC/GM/MPM
FC/Rest Mgr/Bars Mgr/F&B
Mgr/Chef
FC
FC
FC
1.
Revenue Report - System Wide
This report shows revenue, by revenue centres (e.g. Restaurant, Bar, Room Service and
Conference and Banqueting).
The revenue shown is broken down further into meal periods of the different revenue
centres.
Within each revenue centre/meal period you can see the major groups (e.g. food, beverage,
wine, tobacco/miscellaneous and tips.
The final column shows the number of covers for a revenue centre, by meal period
Points to note -
2.
Offline Payments - System Wide
This report shows any offline payments that have been used.
The revenue centres and meal periods are shown down the left hand side of the report, and
the different types of offline payments are shown going across the report (e.g. cash, cheque
etc)
Points to note - Offline payments should only be made when the interface between Micros
and Fidelio is down. The revenue on this report should be posted manually into
Fidelio.
3.
Food Discount Report - System Wide
This report shows any food discounts that have been given
The revenue centres and meal periods are shown down the left hand side of the report, and
the different discount types are shown going across the report (e.g. HR11, Business
Privilege).
72
4.
Beverage Discount Report - System Wide
This report shows any beverage discounts that have been given
The revenue centres and meal periods are shown down the left hand side of the report, and
the different discount types are shown going across the report (e.g. HR11, Business
Privilege).
5.
Outlet Transfers - System Wide
This report shows any transfers that have been made from one revenue centre to another.
The revenue centres and meal periods are shown down the left hand side of the report, and
the transfers in/transfers out are shown going across the report
6.
Micros/Fidelio Balance Report - System Wide
This report shows the balance which has been posted into Micros to Fidelio.
The revenue centres and meal periods are shown down the left hand side of the report.
Across the report shows revenue by major groups (food, beverage, wine,
tobacco/miscellaneous and tips, with a total revenue column.
The column showing inclusives should be looked at and analyzed carefully. These are
extracted from the Fidelio balance.
Transfers in/out, covers and voids (voids from previous rounds in the Bar, menu item
voids) can also be seen in this report
7.
Revenue Centre Financial Report - Revenue Centre Wide
This report shows the total business by day for that particular revenue centre. The report
is a full breakdown which incorporates net sales, service charge, total revenue, discounts,
voids, checks that have begun, transferred in, paid and transferred out.
Other information includes cancel totals, error correct totals and no sales count.
The report is split with a new sales total figure, number of guests, average spend per guest,
number of checks and average spend per check.
The breakdown at the bottom of the report is the same information that the User pulls off
at the end of shift report to cash up. This information includes payments, discounts, and
total sales.
Points to note - Voids should be checked on a daily basis to assess lost revenue, food and
service quality and possible training needs.
- Error corrects and cancels should be checked to assess training needs.
73
8.
Serving Period Financial Report - By Shift
The information shown in this report is laid out identically to that in the revenue centre
financial report (7).
This information is by serving periods.
Points to note - This information assess results by individual shifts. If there are any
concerns regarding the previous points then this report should be checked to
see which shifts are the cause.
9.
System Financial Report - System Wide
The information shown in this report is laid out identically to that in the revenue centre
financial report (7).
This information is for the system.
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75
Weekly Reports
Report Name
To Whom
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
1.
Revenue Report - System Wide
This report shows revenue, by revenue centres (e.g. Restaurant, Bar, Room Service and
Conference and Banqueting).
The revenue shown is broken down further into meal periods of the different revenue
centres.
Within each revenue centre/meal period you can see the major groups (e.g. food, beverage,
wine, tobacco/miscellaneous, and tips
The final column shows the number of covers for a revenue centre, by meal period
2.
Offline Payments - System Wide
This report shows any offline payments that have been used.
It should be noted that offline payments should only be made when the Front Office
interface is down. If this report is showing offline payments, it should be checked very
carefully the reason for these.
The revenue centres and meal periods are shown down the left hand side of the report, and
the different types of offline payments are shown going across the report (e.g. cash, cheque
etc)
3.
Food Discount Report System Wide
This report shows any food discounts that have been given
The revenue centres and meal periods are shown down the left hand side of the report, and
the different discount types are shown going across the report (e.g. HR11, Business
Privilege).
76
4.
Beverage Discount Report - System Wide
This report shows any beverage discounts that have been given
The revenue centres and meal periods are shown down the left hand side of the report, and
the different discount types are shown going across the report (e.g. HR11, Business
Privilege).
5.
Outlet Transfers - System Wide
This report shows any transfers that have been made from one revenue centre to another.
The revenue centres and meal periods are shown down the left hand side of the report, and
the transfers in/transfers out are shown going across the report
6.
Micros/Fidelio Balance Report - System Wide
This report shows the balance, which has been posted into Micros to Fidelio.
The revenue centres and meal periods are shown down the left hand side of the report.
Across the report shows revenue by major groups (food, beverage, wine,
tobacco/miscellaneous and tips, with a total revenue column.
The column showing inclusives should be looked at and analyzed carefully. These are
extracted from the Fidelio balance.
Transfers in/out, covers and voids (voids from previous rounds in the Bar, menu item
voids) can also be seen in this report
7.
Revenue Centre Financial Report - Revenue Centre Wide
This report shows the total business by day for that particular revenue centre. The report
is a full breakdown, which incorporates net sales, service charge, total revenue, discounts,
returns, voids, checks that have begun, transferred in, paid and transferred out.
Other information includes cancel totals, error correct totals and no sales count.
The report is split with a new sales total figure, number of guests, average spend per guest,
number of checks and average spend per check.
The breakdown at the bottom of the report, is the same information that the user pulls off
at the end of shift report to cash up. This information includes payments, discounts and
total sales.
8.
Serving Period Financial Report - By Shift
The information shown in this report is laid out identically to that in the revenue centre
financial report (7).
This information is by serving periods
77
9.
System Financial Report - System Wide
The information shown in this report is laid out identically to that in the revenue centre
financial report (7).
This information is for the system.
The following two reports are additional reports that are pulled off weekly
78
79
Monthly Reports
Report Name
1.
2.
4.
5.
6.
7.
8.
9.
10.
11.
12.
To Whom
FC/Hotel Micros Project Mgr
(MPM)
FC
FC/Chef/F&B Mgr/Rest. Mgr
FC/F&B Mgr/Bars Mgr
FC
FC/GM/MPM
FC/Rest Mgr/Bars Mgr/F&B
Mgr/Chef
FC
FC
GM/FC/Chef/Bars Mgr/Rest
Mgr/F&B Mgr
GM/FC/Chef/Bars Mgr/Rest
Mgr/F&B Mgr
GM/FC/Chef/Bars Mgr/Rest
Mgr/F&B Mgr
1.
Revenue Report - System Wide
This report shows revenue, by revenue centres (e.g. Restaurant, Bar, Room Service and
Conference and Banqueting).
The revenue shown is broken down further into meal periods of the different revenue
centres.
Within each revenue centre/meal period you can see the major groups (e.g. food,
beverage, wine, tobacco/miscellaneous, and tips
The final column shows the number of covers for a revenue centre, by meal period
2.
Offline Payments - System Wide
This report shows any offline payments that have been used.
It should be noted that offline payments should only be made when the front office
interface is down. If this report is showing offline payments, it should be checked very
carefully the reason for these.
The revenue centres and meal periods are shown down the left hand side of the report,
and the different types of offline payments are shown going across the report (e.g. cash,
cheque etc)
3.
Food Discount Report - System Wide
This report shows any food discounts that have been given
The revenue centres and meal periods are shown down the left hand side of the report,
and the different discount types are shown going across the report (e.g. HR11, Business
Privilege.
80
4.
Beverage Discount Report - System Wide
This report shows any beverage discounts that have been given
The revenue centres and meal periods are shown down the left hand side of the report,
and the different discount types are shown going across the report (e.g. HR11, Business
Privilege.
5.
Outlet Transfers - System Wide
This report shows any transfers that have been made from one revenue centre to
another.
The revenue centres and meal periods are shown down the left hand side of the report,
and the transfers in/transfers out are shown going across the report
6.
Micros/Fidelio Balance Report - System Wide
This report shows the balance, which has been posted into Micros to Fidelio.
The revenue centres and meal periods are shown down the left hand side of the report.
Across the report shows revenue by major groups (food, beverage, wine,
tobacco/miscellaneous and tips, with a total revenue column.
The column showing inclusives should be looked at and analyzed carefully. These are
extracted from the Fidelio balance.
Transfers in/out, covers and voids (voids from previous rounds in the Bar, menu item
voids) can also be seen in this report
7.
Revenue Centre Financial Report - Revenue Centre Wide
This report shows the total business by day for that particular revenue centre. The
report is a full breakdown, which incorporates net sales, service charge, total revenue,
discounts, returns, voids, checks that have begun, transferred in, paid and transferred
out.
Other information includes cancel totals, error correct totals and no sales count.
The report is split with a new sales total figure, number of guests, average spend per
guest, number of checks and average spend per check.
The breakdown at the bottom of the report is the same information that the user pulls
off at the end of shift report to cash up. This information includes payments, discounts,
and total sales.
8.
Serving Period Financial Report By Shift
The information shown in this report is laid out identically to that in the revenue centre
financial report (7).
This information is by serving periods
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9.
System Financial Report - System Wide
The information shown in this report is laid out identically to that in the revenue centre
financial report (7).
This information is for the system.
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Miscellaneous Reports
Report Name
A.
B.
C.
D.
E.
F.
G.
To Whom
Chef, GM, FC, Restaurant/Bars
Mgr
Chef, GM, FC, Restaurant/Bars
Mgr
Chef, GM, FC, Restaurant/Bars
Mgr
Chef, GM, FC, Restaurant/Bars
Mgr
FC, Restaurant/Bars Mgr
Restaurant/Bars Mgr
Restaurant/Bars Mgr
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F.
Employee Financial Report
This report shows the total revenue generated by each employee. This report is useful
for Restaurant/Bars Managers when trying to track sales by employees for sales races.
The report is a full breakdown, which incorporates net sales, service charge, total
revenue, discounts, returns, voids, checks that have begun, transferred in, paid and
transferred out.
Other information includes cancel totals, error correct totals and no sales count.
The report is split with a new sales total figure, number of guests, average spend per
guest, number of checks and average spend per check.
The breakdown at the bottom of the report, is the same information that the user pulls
off at the end of shift report to cash up. This information includes payments, discounts,
and total sales.
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Covers Definition
Brand Standard = any person ordering a food menu item including
tea and coffee
Restaurant 1
Breakfast
Lunch
Dinner
Restaurant 2 / 3 / 4
As Restaurant 1, for breakfast, lunch and dinner.
Lounge, Deli, Bar and Caffe Cino Food (not second restaurant)
Breakfast
Any cover / person served from this area between 6.00 am and
11.00 am. This includes single services of tea and coffee. Where
guests order multiple teas and coffees, this should be treated as 1
cover per person.
Lunch
Dinner
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Lunch
Dinner
Others
Tea and coffee served in a function room or lobby or other related area
throughout the day and including nibbles and canaps, offered with
beverages (alcohol, teas, coffees).
This does not include sandwiches, which are a lunch or dinner item.
Room Service
Breakfast
Other Covers
Bar 1
Food and nibbles served over the bar counter and charged for i.e. pre
packed crisps and snacks.
Non-Cover Sales
Day and 24-hour delegates who have multiple servings of food items should be
recorded as 1 cover per item served.
i.e. morning coffee, lunch, afternoon tea is equal to 3 covers.
It is important that it is identified and trained into team members that covers
need to be accurately recorded in order to track average spend and judge
volume of business for staffing etc.
Ensure during banquets and functions that minimum numbers of covers are
charged for.
It is Best Practice that contracts are signed for minimum numbers, and that
minimum numbers are charged without fail.
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Lunch
Dinner
Banqueting Food
Bar Food
Other Catering
All Night Porter food (ex room service), all takeaway food
and all outside catering.
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Food Tracker
Once planning, delivery, preparation and menu sales are complete, in order to
track your performance you must have a tool to combine all of your component
parts. A useful tool for this is a food tracker, which will give you a rough
estimation of week, or month to date food cost%.
See appendices.
If all the information in the example is used and data is up to date then a
reasonably accurate picture should be built of the running months food cost.
However the following should be noted and may cause adverse effects if not
controlled properly
1) Revenues will rise and fall with additional and rebated charges.
2) Credit notes will reduce costs. (Any awaiting credits should be made clear
on delivery notes).
3) Un-accrued invoices from previous periods will raise costs.
4) Invoices not received for delivered and used goods will reduce costs.
5) Invoice prices should be checked for accuracy against price list and
purchasing manual.
6) Management and entertainment figures may only be entered monthly.
7) The food tracker does not take into account the movement in stock levels
or stock valuation.
8) Invoices should be broken down into categories (meat, fish, dairy etc) and
monitored against average consumption.
Regularly liase with the Finance Department to see that revenues and invoicing
are up to date.
Regularly liase with Stores and Purchasing to see that all invoices are in place /
received.
In order to optimise use of the food tracker a weekly target of cost against
revenue should be set in order to have controlled expenditure.
It is Best Practice to use a food tracker system.
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Stocktaking
Aim
To provide a true and auditable value of monthly assets and to provide data for
the calculation of monthly food cost profit.
It is Best Practice that a stock valuation is obtained per accounting period.
As a 24-hour business it is important that you are flexible in your approach to
stocktaking whilst at the same time ensuring accuracy and consistency.
During all stock takes you must understand that you will never get a 100%
accurate result as a) stock moves and b) you will always miss something.
The best way to ensure an accurate result is to maintain a consistent approach.
Therefore, always count in the same order and count in the same unit sizes
relevant to what you are counting. Be methodical.
Count in
However also remember that luxury items such as Caviar, Saffron, and Fois
Gras etc have a high net value, therefore with these items you need to be more
accurate and precise.
Dont worry too much about the Pennies, it is the Pounds that are important.
A minimum of two (2) people should stock take, 1 counting and 1 recording,
checking and questioning the count and value. One of the counters should be
independent of the kitchen.
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It is a misconception that the Head Chef has to do all of the stocktaking. The
important thing is that you have somebody who
1) Can count and judge weight and value
and
2) Who recognizes the goods / product.
Stocktaking can be carried out by anyone as long as the above rules are followed.
Therefore if a Commis is good at mathematics and is methodical there should be
no reason as to why he cannot help. This is also an ideal training method to help
them understand food costing within the kitchen.
If you count in the same order you will be able to compile and use the same stock
sheets weekly /monthly. Remember however to regularly update them as menus
and business changes.
Give realistic values to prepared or compound products;
Example;
Use basic Excel spreadsheets per sub department and get each section Chef to
count his own fridge and workstation.
If you have a large enough operation Dry Stores should have a ledger that
records stock movement in and out of the store. Periodic spot-checks will ensure
that no items are missing. (Could be computerised to give a real time value).
When stocktaking, always question the reason goods are in a certain fridge or
store. For example would you expect to see 5 kg of smoked salmon in the dairy
fridge or 5 fillet steaks in the bar, knowing full well they do not have it on their
menu or indeed a grill?
Large stock discrepancies should be noted and investigated. These investigations
should be identified to the Head Chef and Financial Controller.
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From time to time you will have items in the store that do not seem to be used.
Also known as slow moving items. As they inflate the value of stock you either
need to use them or get the Financial Controller to dispose of them.
It is Best Practice to have a 7-9 day stock holding of foodstuffs.
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Freshness
Colour variation
Uniform dish display
Attractive but not over garnished
Visual variation (height)
Do not cook everything off prior to service; choose dishes that can be
cooked quickly.
Ensure that the Chef on the table understands all the dishes, all the
ingredients, and cooking method.
The Table Chef must have a personality and character so that they can
talk and sell food to the customers.
Carving techniques must be taught, a bad Table Chef will cost you money
in wastage.
Fully brief all restaurants, bar, lounge and even reception staff on what is
on the menu.
When replenishing dishes, take old dishes away and replenish with a new
dish. N.B. Do not top up dishes in front of the customer.
Remember that the food quality expectation of the last customer is the
same as the first.
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Breakfast
Using the knowledge gained from peaks and troughs, food production should be
geared up to just in time cooking.
Monitor the average consumption over a weekly period. Establish what the
average mix of business is by consumption of key production items;
Scrambled Eggs
Bacon
Sausages
Scrambled Egg
Bacon
When bacon is trayed up do not overlap the rashers. Do not stack trays
on top of each other. This will stop the rashers sticking together and
causing increased wastage or poor portion control. Bacon must be cooked
using the methods in the breakfast specification manual.
Sausages
These must be trayed up so that there is space to get an even colour on the
product during the cooking process. They should be oven baked. Under
no circumstances should they be fried.
Re-Stocking
Once peaks and troughs have been established use a size dish for
trough and a full-size for peaks.
When stocking a product, do not tip new in on top of old, this leads to poor
presentation and a build up of old product generally in fat at the bottom.
The method is to take away the dish that needs restocking, have a new dish ready
with new product and place (do not tip) the old product on top, taking care, so no
liquid comes from the old onto the new.
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Lunch / Dinner
Production for lunch and dinner tables follows a similar system to breakfast. The
basis being the forecast of number of covers and at what time they will be eating.
This covers the majority of bookings of groups. i.e. tours and Conferences.
The entre dishes should only be cooked off for immediate use, little and often.
This will reduce wastage.
When cooking a la carte production. Ensure that your mis en place is only
sufficient to cover your immediate service needs. Do not batch cook for a la
Carte, except in the cases of Soups, Terrines and Stocks.
Take Micros sales analysis to help predict volumes. Remember sales mix will
vary according to weekend and midweek.
Room Service
As already mentioned in forecasting and planning will be busy on nights when
there are popular sporting events on the television. Using the micros room
service menu analysis you will be able to predict those nights and sales mix.
Food Production
Remembering these principles will ensure efficient food production.
Look for value for money ingredients. Look for ingredients that you can
get consistently.
Sharing Information
To make strategic business decisions concerning the hotels food and beverage
outlets it is essential that all data is readily available and is accurate.
It is the responsibility of the Accounts Office to supply the General / Hotel
Manager and all of the Management Team with daily accurate information
giving details of revenue, covers and average spends.
All information produced and issued daily by the Accounts Office should mirror
any revenue or statistical reports that can be produced from Oracle.
!
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Information Table
Below is an example of the various information that should be shared to manage
food cost profitability.
Report Type
Use
100
From the example below based on previous calculations the optimum food cost
for the trading period is 25%. If the calculations have been made correctly this
will give a true picture of what the food cost should be within the hotel.
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Example
Hotel Optimum Food Cost Calculation
Sales ()
FC ()
FC (%)
Buffet
10000
3500
35
A la carte
2000
600
30
Room Service
2000
800
40
Bar/Lounge
2000
500
25
Restaurant 2
3000
1140
38
Banqueting
20000
3600
18
Total
36000
10140
26
The cost values are calculated from the menu cost sales mix analysis, AFCEs
and Banqueting menu sales / cost matrix tracker.
It is Best Practice to calculate optimum food cost as part of month end
calculations.
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Appendices
Charts and Food Cost Calculations
FC001
FC002
FC003
FC004
FC005
FC006
FC007
FC008
Revenue Deductions
Conversion Formulae
Conversion Tables
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Conversion Tables
Exact Formulae Dry Goods
Workable Equivalents
Ounces / Fluid Ounces
Gram / Millilitres
10
25
50
75
100
125
10
250
15
375
20
500
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Conversion Formulae
To Calculate Selling Price on known GP%
To Add VAT
Example
Cost Price
= 1.45
= 29%
Cash Profit
= 3.55
= 71%
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