2015 DMC2523 Topic 15 Beverage Purchasing Control

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Information about 2015 DMC2523 Topic 15 Beverage Purchasing Control

Published on September 25, 2015

Author: LauraLaw1028

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1. + DMC2523 MENU PLANNING AND COST CONTROL Topic 15 Beverage Purchasing Control Principles of Food, Beverage, and Labor Cost Controls, Ninth Edition

2. Alcoholic Beverage Classifications  Serving Alcoholic Beverages  Alcoholic beverages refer to those products which are meant for consumption as a beverage, and where a significant amount of ethyl alcohol content is present.  Alcoholic beverages are generally classified as:  Beers (lager beers and ales)  Wines (red, white, rose)  Spirits

3. + In moderate doses, ethyl alcohol is a mild tranquilizer; in excessive doses, it can become toxic.  While the special requirements surrounding the service of alcohol are many, controlling beverage costs is similar to controlling food costs. Alcoholic Beverages

4. Beer is a fermented beverage made from grain and flavored with hops. Wine is a fermented beverage made from grapes, fruits, or berries. Spirits are fermented beverages that are distilled to increase the alcohol content of the product.

5. Wines  Varietal: named for the variety of grape that predominates the wine.  Brand Name: known primarily by the name of the producer.  Geographic: named for its place of origin, can be as large as a region or a district or as small as a vineyard, Fr. Chateau.  Generic: named for a well-known wine producing region, but not produced there. i.e. “California Burgundy”

6. + Additional Wines & Beverages  Sparkling wines: Champagne, Asti Spumanti, sparkling burgundy  Fortified wines: wines with a small quantity of spirits or brandy added; Port & Sherry  Wine coolers: blends of wine and fruit juice  Blush wines: “pink wine” combination of white and red grapes, light and sweet

7. + Alcohol Production Processes  Fermentation: Natural, chemical process by means of which sugars in a liquid are converted to ethyl alcohol and carbon dioxide  Distillation: Process by means of which alcohol is evaporated from a fermented liquid and then condensed and collected as a liquid

8. Nonalcoholic Beverages  Coffee, Tea or Milk  Carbonated  Non-carbonated  Mixers Other ingredients  Garnishes, Cream, Lemon & Lime juice

9. + Types of Establishments  Controls must be modified to meet the characteristic and inherent increased responsibility created by the sale of alcoholic beverages.  There are two primary classifications of establishments that serve alcohol: restaurants that use it as an accompaniment to food, and those locations whose primary offering is alcohol.

10. + Purposes of Beverage Purchasing Controls  To maintain an appropriate supply of ingredients for producing beverage products.  To ensure that the quality of ingredients purchased is appropriate to intended use.  To insure that ingredients are purchased at optimum prices.

11. + Factors Used to Establish Quantity Standards for Beverage Purchasing  Frequency with which management chooses to place orders  Storage space available  Funds available for inventory purchases  Delivery schedules set by purveyors  Minimum order requirements set by purveyors  Price discounts for volume orders  Price specials available  Limited availability of some items

12. + Two Types of States for Purposes of Beverage Purchasing  License states: States in which beverage wholesalers (and sometimes manufacturers and distributors) are allowed to sell alcoholic beverages directly to foodservice establishments  Control states: States in which the state government actually sells some or all alcoholic beverages through its own network of stores, thus exercising complete control over prices

13.  Dramshop laws, passed in many states, shift the liability for acts committed by intoxicated individuals from the individual to the server or operation that supplied the alcohol.  In all states, the sale of alcoholic beverages is regulated either by the licensing of establishments that are allowed to sell alcoholic beverages (license states) or by direct control and sale of the products by the state (control states).

14. + While food products only require one level of quality per item, several qualities are chosen for alcoholic beverages. Beer is the most highly perishable of beverage products, with a pull date of only a few months. Operators must, therefore, carefully select brand and packaging methods. Generally, clientele, ambiance, and menu help determine what beer product will be selected. Purchasing Beverage Products

15. + Beer is typically sold in cans, bottles, or kegs. Draft beer (beer from kegs) is often the preferred choice and cheaper for operators to serve. However, special equipment is required. The shelf life of keg beer is the shortest of all packaging types, ranging from 30 to 45 days for an untapped keg, that is, one that has not yet been opened by the bartender, and even fewer days for a keg that has been tapped (opened). Purchasing Beverage Products

16. + Wine must also be selected according to product and packaging. Operators generally sell wine by the glass, bottle, and split or half bottle. If wine is also purchased for cooking, it will be bought from the beverage wholesaler also, but generally not of the same quality as that purchased for drinking. Purchasing Beverage Products

17. + As a good manager, you will build a wine list, the term used to describe your menu of wine offerings, that fits your own particular operation and guest expectations.  In developing a wine list, operators must offer choices for guests who want to spend a lot or a little.  A vintner is a wine producer. Purchasing Beverage Products

18. + However, avoid the temptation to offer too many wines on a wine list. Wait staff should be trained to be knowledgeable but not intimidating to guests. Generally, if operators are having trouble selling wine, the difficulty lies in the delivery of the product rather than with the product selected. Purchasing Beverage Products

19. + Distilled spirits have an extremely long shelf life; therefore, a wrong purchase is not usually a disaster. Quality levels are most pronounced with spirits. Packaging is not a particular issue when dealing with spirits. Purchasing Beverage Products

20. + Call liquors are those requested by brand name; extremely expensive call liquors are sometimes referred to as premium liquors. Operators generally charge a higher price for call and premium liquors. •In general, operators will select spirits in two major categories, well and call. Well liquors are those spirits that are poured when the customer does not specify a particular brand name. Purchasing Beverage Products

21. Purchasing Beverage Products  Remember, just because a customer is price conscious and orders a well liquor, does not mean that he or she is not also quality conscious.  Quality spirit products at fair prices build customer loyalty. © John Wiley & Sons, Inc. 2009

22. + Chapter 14 Beverage Receiving, Storing and Issuing Principles of Food, Beverage, and Labor Cost Controls, Ninth Edition

23. +  Quantity of an item delivered must equal the quantity ordered  Quality of an item delivered must be the same as the quality ordered  Price on the invoice for each item delivered should be the same as the price quoted or listed when the order was placed Standards for Beverage Receiving

24. + 1.Maintain an up-to-date file of all beverage orders placed 2.Remove the record of an order from the file when a delivery arrives and compare it to the invoice presented by the delivery driver 3.Before the driver leaves, check brands, dates, or both, and count or weigh delivered goods 4.Compare the invoice to the order Standard Procedure for Beverage Receiving

25. + 5. Call to the attention of management and the delivery driver any broken or leaking containers and any bottles with broken seals or missing labels 6. Note all discrepancies between delivered goods and the invoice on the invoice itself 7. Sign the original invoice and return it to the driver. 8. Record the invoice on the beverage receiving report 9. Notify the person responsible for storing Standard Procedure for Beverage Receiving (continued)

26. +  Prevent pilferage  Ensure accessibility when products are needed  Preserve quality Storing Control Objectives

27. +  Assign the responsibility for the stored items to a single employee  Keep the beverage-storage facility locked at all times To Secure Storage Areas,You Have Two Choices:

28. +  To ensure the timely release of beverages from inventory in the needed quantities  To prevent the misuse of alcoholic beverages between release from inventory and delivery to the bar Beverage Issuing Objectives

29. + Standards  Carefully set issue quantities  Issue beverages only to authorized people Standard Procedures  Establish par stocks for bars  Set up a requisition system Beverage Issuing Standards and Standard Procedures © John Wiley & Sons, Inc. 2009

30. + Chapter 15 Beverage Production ControlPrinciples of Food, Beverage, and Labour Cost Controls, Second Canadian Edition

31. + Learning Objectives  15.1 Identify the two primary objectives of beverage production control.  15.2 Describe the standards and standard procedures necessary for establishing control over beverage production.  15.3 List four devices and means used to standardize quantities of alcoholic beverages used in beverage production.  15.4 Describe the use of standardized glassware in beverage control and the importance of stipulating specific glassware for each drink.  15.5 Explain the significance of standard drink recipes in beverage control.  15.6 Calculate the standard cost of any drink, given a standard recipe and the current market prices of ingredients.  15.7 Calculate the standard cost-to-sales ratio for any drink, given its standard cost and sales price.  15.8 Explain why bar operations should be monitored frequently and list four techniques for monitoring the performance of bartenders. Principles of Food, Beverage, and Labour Cost Controls, Second Canadian Edition 31

32. + Beverage Control Principles of Food, Beverage, and Labour Cost Controls, Second Canadian Edition 32

33. + Objectives of Production Control 1. To ensure that all drinks are prepared according to management’s specifications  Take into account the tastes of expected customers 1. To guard against excessive costs that can develop in the production process  Management’s desire to prepare drinks of appropriate quality and size Principles of Food, Beverage, and Labour Cost Controls, Second Canadian Edition 33

34. + Quantity Standards and Procedures Use of a device for measuring alcohol:  Shot glass  Plain  Lined  Jigger  Pourer  Manual  Automatic  Automated dispenser  Free pour Principles of Food, Beverage, and Labour Cost Controls, Second Canadian Edition 34

35. + Quantity Standards and Procedures Glassware:  Controls:  Liquor quantity  Overall drink size  Select appropriate:  Size  Type  Variety Principles of Food, Beverage, and Labour Cost Controls, Second Canadian Edition 35

36. + Quality Standards and Procedures Standard Drink Recipes Management must determine which recipe will be used.  Manhattan 1  2 ½ oz. blended rye whisky  ¾ oz. sweet vermouth  Dash of bitters  Manhattan 2  1 ½ oz. blended rye whisky  ¾ oz. sweet vermouth  Dash of bitters Principles of Food, Beverage, and Labour Cost Controls, Second Canadian Edition 36

37. + Calculate the Cost of Straight Drinks Method I Total number of ounces in bottle ÷ Standard portion size (ounces) = Number of drinks per bottle Cost of bottle ÷ Result from Step 1 = Standard drink cost Principles of Food, Beverage, and Labour Cost Controls, Second Canadian Edition 37

38. + Calculate the Cost of Straight Drinks Method II Cost of bottle ÷ Total number of ounces in bottle = Cost per ounce Result from Step 1 × Standard portion size = Standard drink cost Principles of Food, Beverage, and Labour Cost Controls, Second Canadian Edition 38

39. + Calculate the Cost of Mixed Drinks Principles of Food, Beverage, and Labour Cost Controls, Second Canadian Edition 39 One Type of Standard Recipe Detail and Cost Card Item Gin Martini Bar Recipe # 53 Drink sales price $4.50     Drink cost $1.00     Cost percent 22.22%     Ingredients   Quantity Cost Gordon’s Gin 2 oz $0.82 Martini & Rossi Dry Vermouth ½ oz $0.14 Cocktail olive 1 ea $0.04 Totals   2½ oz $1.00 Glassware 4 oz. cocktail Procedure Pour gin and vermouth into glass shaker. Add cracked ice. Stir gently. Strain into 3 oz. cocktail glass. Add olive and serve.  

40. + Monitoring Sales It is essential that the sales price be standardized for all drinks. Observing employee performance: 1. Manager personally observes bar operations regularly. 2. Designated employee, such as a head bartender, observes bar, reports unacceptable performance and problems. 3. Individuals unknown to the bartenders visit the bar, observe the employees, and report problems. 4. Closed-circuit television systems can be installed to permit observation of bartenders and operations from a remote Principles of Food, Beverage, and Labour Cost Controls, Second Canadian Edition 40

41. + Key Terms  Cocktail, p. 300  Free pour, p. 397  Jigger, p. 394  Lined shot glass, p. 394  Mixed drink, p. 400  Plain shot glass, p. 394  Pourer, p. 395  Shot glass, p. 394  Standard drink recipe, p. 400Principles of Food, Beverage, and Labour Cost Controls, Second Canadian Edition 41

42. + Chapter Web Links  Accubar:  www.accubar.com/Products/banquet-inventory.asp  Alcohol Controls:  www.alcoholcontrols.com/bridlicosy1.html  Riedel Canada Glassware:  http://riedelcanada.ca/ Principles of Food, Beverage, and Labour Cost Controls, Second Canadian Edition 42

43. Copyright Principles of Food, Beverage, and Labour Cost Controls, Second Canadian Edition 43

44. + Chapter 16 Monitoring Beverage Operations Principles of Food, Beverage, and Labor Cost Controls, Ninth Edition

45. + Management observes bar operations Designated employee observes others working at the bar and reports back to management Individuals unknown to the bartender visit the bar, observe employees, and report back to management Closed-circuit television systems permit observation from some remote location Ways to Monitor Beverage Production

46. + 1. The Cost Approach  Cost percent methods  Monthly calculations  Cost calculations by category  Daily calculations 2. The Liquid Measure Approach  Ounce-control method 3. The Sales Value Approach  Actual sales record method  Average sales value method  Standard deviation method Approaches for Monitoring Beverage Operations

47. + Cost Percent Formulas and Equations Opening beverage inventory + Beverage purchases this month = Total available for sale this month – Closing inventory this month = Value of beverages issued to the bar Bar inventory value at the beginning of the month – Bar inventory value at the end of the month = Bar inventory differential

48. + Cost Percent Formulas and Equations Value of beverages issued to the bar +/– Inventory differential = Cost of beverages consumed Beverage cost percentage = Beverage cost ÷ Beverage sales

49. + Added to beverage cost  Food to bar (directs)  Storeroom issues  Mixers Subtracted from beverage cost  Managers’ drinks  Special promotions Adjustments to Beverage Cost

50. + 1. Determine bottle size and drink size. 2. Calculate drinks per bottle. 3. Multiply drinks per bottle by drink price to get sales value per bottle. Example Bottle size: 1 liter; drink size: 1 ounce 33.8 drinks per bottle How to Calculate Bottle Sales Values

51. + 1. Average inventory = (Opening inventory + Closing inventory) ÷ 2 2. Turnover rate = Cost of beverages sold for a period ÷ Average inventory for the period Generally accepted turnover rates Spirits—1.5 Beers—2.0 Inventory Turnover © John Wiley & Sons, Inc. 2009

52. + Chapter 17 Beverage Sales Control Principles of Food, Beverage, and Labor Cost Controls, Ninth Edition

53. +  Optimize the number of sales  Maximize profit  Control revenue Objectives of Beverage Sales Control

54. +  To socialize  To conduct business  To eat  To enjoy entertainment  To kill time Reasons That People Patronize Beverage Establishments

55. + Market segment: Subgroup of potential patrons with similar characteristics Dram shop laws: State statutes that hold the serving establishment and the server financially liable for damages to third parties resulting from the serving of alcoholic beverages to intoxicated customers Automated bar: Computerized device for dispensing beverages and simultaneously registering sales Important Chapter Terms

56. +  Establishing drink prices that will maximize gross profit  Influencing customers’ selections In Beverage Operations, Profit Maximization Is Accomplished by:

57. +  Working with an open cash drawer  Under-ringing sales  Overcharging customers  Undercharging customers  Overpouring  Underpouring  Diluting bottle contents  Bringing one’s own bottle into the bar  Charging for drinks not served  Drinking on the job Unacceptable Bartender Work Habits © John Wiley & Sons, Inc. 2009

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