Published on September 25, 2015
1. DMC2523 MENU PLANNING AND COST CONTROL LAURA LAW - PERAK COLLEGE OFTECHNOLOGY
2. • Portions - Standard Portion Size, Standard Recipes, Standard Portion Cost and Monitoring Production Performance • Quantities - Standard Procedures, Monitoring Sales history, Forecasting Portion Sales LAURA LAW - PERAK COLLEGE OFTECHNOLOGY Handout Copy of Text Book
3. DMC2523 MENU PLANNING AND COST CONTROL LAURA LAW - PERAK COLLEGE OFTECHNOLOGY
4. The standards and standard procedures for production control are designed to ensure that all portions of any given item conform to management ’ s plans for that item and that, as far as possible, each portion of any given item is identical to all other portions of the same item. Portion for any given menu should be identical in 4 respect. 1. Ingredients 2. Proportions of ingredients 3. Production methods 4. Quantity To achieved the 4 respected areas we need to have 1. Standard Portion Size 2. Standard Recipe 3. Standard Portion Cost
5. One of the most important standards that any foodservice operation must establish is the standard portion size , defined as the quantity of any item that is to be served each time that item is ordered. In effect, the standard portion size for any item is the fixed quantity of a given menu item that management intends to give each customer in return for the fixed selling price identified in the menu. It is possible and desirable for management to establish these fixed quantities in very clear terms. Every item on a menu can be quantified in one of three ways: by weight, by volume, or by count. Every item on a menu can be quantified in one of the three way: By Weight Can be expresses in ounce or grams used to measure portion sizes for a number of menu items. By Volume Is used as the measure for portion of many menu items usually that of liquid in nature, Milk, soup, juices of coffees By Count Used to identify portion size, such as sausage, eggs and shrimps 5
6. Many devices are available to help foodservice operators standardize portion sizes. Among the more common are the aforementioned scoops and slotted spoons, as well as ladles, portion scales, and measuring cups. Even the number scale or dial on a slicing machine, designed to regulate the thickness of slices, can aid in standardizing portion size: A manager may stipulate a particular number of slices of an item on a sandwich and then direct that the item be sliced with the dial at a particular setting Advantages for practicing Standard Portion Size It helps reduce customer discontent as the customer cannot compare his or her portion unfavorably with that of other customer and feel dissatisfied or cheated. It help to eliminate animosity of miscommunication between the kitchen staff and the server over the portion size that lead to delay in the serving of food. It help to eliminate excessive costs of over portioned menu. Price on the menu is usually fixed, thus it will also reflect the portion size of the menu. If the portion size is constantly change then it will dissatisfied the customer and server. 6
7. Another important production standard is the recipe. A recipe is a list of the ingredients and the quantities of those ingredients needed to produce a particular item, along with a procedure or method to follow. A standard recipe is the recipe that has been designated the correct one to use in a given establishment. Standard recipes help to ensure that the quality of any item will be the same each time the item is produced. They also help to establish consistency of taste, appearance, and customer acceptance. the same ingredients are used in the correct proportions and the same procedure is followed, the results should be nearly identical each time the standard recipe is used, even if different people are doing the work. In addition, returning customers will be more likely to receive items of identical quality. Standard recipes are also very important to food control. Without standard recipes, costs cannot be controlled effectively. If a menu item is produced by different methods, with different ingredients, and in different proportions each time it is made, costs will be different each time any given quantity is produced 7
8. A standard portion cost can be calculated for every item on every menu, provided that the ingredients, proportions, production methods, and portion sizes have been standardized as previously discussed. In general, calculating standard portion cost merely requires that one determine the cost of each ingredient used to produce a quantity of a given menu item, add the costs of the individual ingredients to arrive at a total, and then divide the total by the number of portions produced. Standard portion cost is defined as the dollar amount that a standard portion should cost, given the standards and standard procedures for its production. The standard portion cost for a given menu item can be viewed as a budget for the production of one portion of that item. There are several reasons for determining standard portion costs. The most obvious is that one should have a reasonably clear idea of the cost of a menu item before establishing a menu sales price for that item 9
9. There are several methods for calculating standard portion costs: 1. Formula For many (perhaps even for a majority) of the menu items prepared in foodservice establishments, determining standard portion cost can be very simple. For a large number of items, one may determine portion cost by means of this formula: Standard portion cost = Purchase price per unit Number of portions per unit For example, consider an establishment serving eggs on the breakfast menu, with two eggs as the standard portion. One can determine the standard cost of the portion of the eggs by dividing the cost of a 30 - dozen case of eggs — say, $ 41.40 — by the number of two - egg portions it contains (180) to find the standard portion cost of $ 0.23. Standard portion cost = 41.40 purchase price per case 180 std. portion per case = $0.23
10. There are several methods for calculating standard portion costs: 2. Recipe detail and cost card For menu items produced from standard recipes, it is possible to determine the standard cost of one portion by using a form known as a recipe detail and cost card .
11. There are several methods for calculating standard portion costs: 3. Butcher test When meat, fish, and poultry are purchased as wholesale cuts, the purchaser pays the same price for every pound of the item purchased, even though, after butchering, the resulting parts may have entirely different values. If, for example, a particular cut of beef is approximately half fat and half usable meat, the two parts clearly have different uses and different values, even though they were purchased at the same price per pound because both were part of one wholesale cut. Among other purposes, the butcher test is designed to establish a rational value for the primary part of the wholesale piece.
12. There are several methods for calculating standard portion costs: 4. Cooking loss test The primary purpose for the cooking loss test is the same as that for the butcher test: determining standard portion cost. The cooking loss test is used for those items that cannot be portioned until after cooking is complete. With these items, one must take into account the weight loss that occurs during cooking. Therefore, one cannot determine the quantity remaining to be portioned until cooking is completed and portion able weight can be determined. Cooking loss varies with cooking time and temperature, and it must be taken into account in determining standard portion costs.
13. Or yield factor is defined as the percent of a whole purchase unit of meat, poultry or fish that is available for portioning after any required in-house processing has been completed. Quantity = Number of portions X portion size (as a decimal) /Yield percentage 15 Number of portions = Portion size = Yield percentage = Quantity x Yield percentage Portion size Quantity x Yield percentage Number of portions Number of portions x Portion size Quantity
14. DMC2523 MENU PLANNING AND COST CONTROL LAURA LAW - PERAK COLLEGE OFTECHNOLOGY
15. Assume that control has been established over individual portions and will shift our focus to the number of portions produced for each item on a menu for a given day or meal. After all, if the cost of a portion of some item is controlled at, say, $ 4.50 per serving, and the establishment produces 100 portions but sells only 40, there will be 60 portions unsold. These may or may not be salable on another day. Even if they are salable, these portions are likely to be of lower quality than when they were first produced. It is also possible that they cannot be sold in their original form, but must be converted into some other item that will be sold at a lower sales price. Sometimes, if none of these possibilities are feasible, it may be necessary to throw the food away. In any case, there is excessive cost — either the cost of the food or the cost of additional labor that would not have been required if the establishment had produced 40 portions rather than 100. Such excessive costs can be reduced or eliminated by applying the four - step control process to the problem of quantity production.
16. 18 This topic will look into the planning of how many is enough when producing. The quantity of each production will also need to be control as to help in reducing excessive cost though wastage if overproduction or customer dissatisfaction if it is underproduction. Factor need to be considered are: 1. Maintaining sales history 2. Forecasting portion sales 3. Determining production quantities
17. A sales history is a written record of the number of portions of each menu item sold every time that item appears on the menu. It is a summary of portion sales. the best decisions on the nature of the sales history are based on the need for information that can be used to improve operations. Unless the information is useful in leading to better control over costs, its maintenance cannot be justified. the basic information is incorporated into the sales history, it is necessary to understand the two methods used for recording customers ’selections: manual and electronic.
18. Regardless of whether the portion sales records are stored manually or electronically, they are likely to be arranged in one of three ways: 1. By operating period, such as one week or month, so that all sales records for an entire operating period can be viewed together on one page, card or screen. 2. By day of the week , so that all sales records for a given day (e.g. Tuesday) for a period of several weeks can be compared. 3. By entrée item, so that the degree of popularity of a given item can be seen over time.
19. Popularity index is defined as the ratio of portion sales for a given menu item to total portion sales for all menu items The popularity index is calculated by dividing portion sales for a given item by the total portion sales for all menu items and then multiplying by 100 in order to convert to a percentage. The index may be calculated for any time period, even for a single meal. When calculated for a single meal, the index is usually referred to as the sales mix, Popularity index = portion sales X 100 Total portion sales for all menu items 188 X100 1937 0.09706 and 0.09706 100 9.706%
20. Sales histories often include provisions for recording additional relevant information — internal and external conditions that may shed light on sales data. One of the most common of these conditions is the weather. Most foodservice operators find that weather conditions have a noticeable impact on sales volume. Special events can decidedly influence sales and are often included in sales histories. The occurrence of a national holiday on a particular day or the presence of a particular convention group in a hotel can affect sales considerably. So can such varied conditions as faulty kitchen equipment, street construction in front of the restaurant, or a major sale at a nearby
21. Forecasting is a process by means of which managers use data and intuition to predict what is likely to occur in the future. It is a principal element in cost control as accurate prediction will make purchasing and production more accurate. Steps in forecasting are: 1. Gather sales volume for particular time (Sales History) 2. External factors affecting the sales 3. Predict anticipated volume 4. Anticipate the sales for each menu item (Popularity Index) 5. Acquire management’s consent. 23
22. A production sheet is a form on which one lists the names and quantities of all menu item that are to be prepared for a given date. It varies from one establishment to another. Usually submitted to the Chef as many days earlier as possible. Late adjustment can be made immediately before the forecasted date or the night before. Usually minor adjustment. 24
23. PRODUCTION SHEET DAY : Tuesday DATE : 7 Feb 20xx MEAL : Dinner VOLUME FORECAST: 305 Menu item Forecast Adjusted forecast Portion size Production Method Portions on Hand Needed Production Total Available Left over L 75 80 6 oz. Recipe#62 - 80 80 0 M 60 65 8 oz. Recipe#4 5 60 65 5 N 20 20 4 oz. Recipe#19 - 20 20 0 O 150 165 12 oz. Grill 20 145 165 6 Total 305 330 25
24. DAY : Wednesday DATE : 8 Feb 20XX MEAL : Dinner Item Sales Forecast Actual Sales Difference L 80 85 + 5 M 65 60 -5 N 20 20 -0- O 165 159 -6 Total 330 324 -6 26 The purpose of monitoring quantity production: 1. To determine whether the sales forecast has been reasonably accurate in predicting both the total number of customers and their individual preferences for particular menu item 2. To judge how closely the chef has followed the production standards established on the production sheet.
25. VOID SHEET DAY : Tuesday DATE : 7 Feb 20XX Check # Waiter # Item Reason for Return Authorization Sales value 11031 6 O Too well done SJC 7.95 11034 6 M Dropped on floor SJC 6.95 11206 4 O Too well done SJC 7.95 11227 3 O Too well done SJC 7.95 27 Void Sheet is to record all the sale that are not being done because of the reasons stated. The return on each of the item must be authorized by the supervisor or the manager in charge.
26. This approach effectively requires that one follow a series of logical steps. First, each menu item should be listed on the form before kitchen production begins. Next, an inventory is taken of any portions left over from previous meals that may be used again. Reusing leftovers in this way is common in some establishments, but unacceptable in others. If leftovers are to be used, the number of portions on hand is deducted from the quantity scheduled for production, and only the difference is prepared. That number is written in the “ Portions Prepared ” column. 28
27. PORTION PRODUCTION DAY: Wednesday DATE: 8 Feb 20XX Item Opening Inventory Portion Prepared Additional Preparation Total Available Closing Inventory Portions consumed AB - 180 180 15 165 BH 5 60 65 5 60 CJ - 110 10 120 14 106 DZ 20 145 165 8 157 SALES RECONCILIATION Item Portion Sold Portion Void Total Consumed (From Above) Difference Comment AB 165 - 165 165 BH 58 2 60 60 CJ 103 1 104 106 2 2 missing check DZ 156 1 157 157 PREPARED BY:_____________________ REVIEWED BY _______________ Food Controller Manager 29
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