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Food and Beverage

Management
Daniel G. Fuchs
cmdaniel@mahidol.ac.th

2005, Educational Institute


Commercial & Non Commercial
Operations
Commercial food service operations seek
to maximize profits through the sale of food
and beverages.
Non commercial food service operations
exist in properties for which providing food
and beverages is not the primary objective.
Usually but not always non commercial
food service operations seek to minimize
expenses.
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Brief History
In the old ages such as during the Greek and Roman
times Inns were already common usually converted
farm houses to accommodate travelers and provide
them with a basic room and some sort of food
usually cooked meats, some vegetables crudely
served with plenty of beer and derivates version
thereof as well as wines and cheeses and breads.
The roman catholic church maintained many
hospices, monasteries to provide shelter and
nourishment as well as safety to travelers. Hence the
roman catholic church operated the first Hotel chain.

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English Inns and American
Inns
In England Inns that rented rooms were first
reported in the 1400. They were strategically
located near major intersections, ferry landings
or in large towns. Beer was always plentiful and
the food simple.
The American Inn was pretty much the same an
English Inn. Often an American Inn was called a
tavern that served simple food plenty of beer
and provided some rooms for the weary.

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Hotels in the 21 century st

During the early 1900 large hotels were constructed


virtually in every US city. In Europe Switzerland
developed the first resort hotels around 1880 in St.
Moritz. In the US during the 50s a decline in Hotel F
& B quality was noted hence the birth and
continuous popularity of limited service hotels called
motels. In Europe this was not the case and Hotel F
& B was refined.
In the 70s a rebirth of Hotel F & B took place which
lead to todays extravaganza in hotel food and
beverage.
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Freestanding Restaurants
An early form of restaurants appeared in
England around 1600. The restaurants we
know from today began in 1765 in Paris
France. In the US Delmonico started their
restaurants 1827 . They were known for their
lavish food and expensive prices. In the late
1800 and early 1900 cheaper more affordable
restaurants opened and the first drive through
opened in the 1920s as there were enough
cars to support this type of venue. In the 60s
this innovation was replaced by another.
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Quick Service Franchise
Operations
Nothing had a greater impact on the food service
industry than quick service also called fast food.
Quick service dates back to the 30s when Howard
Johnson and A & W Root Beer started to franchise their
operations.
The trend really took off in the late 50s and early 60s
with Mc Donald and Burger King or generally with the
arrival of the hot and cold Sandwich i.e. Hamburger or
other types of chicken sandwich.

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Todays Food Service
Innovation
Food courts in shopping malls a cluster of
restaurants together offering a large possible
food selection to the customer
Laundro bars, people want convenience while
doing the laundry they can have a snack or drink
Supermarkets continue to sell more processed
food
Home delivery of food items
Office delivery of food items

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Food Service in Non commercial
facilities
We could not cover all types of non commercial food
service operations that is why we will concentrate on
two: Business, Hospitals.
Business: World war 1 was mainly responsible for food
service in factories. As workers became sparse factories
attracted their work force with food that they served as
part of the salary. The coffee break was introduced
during the world war 2 and of course today it is standard
for a business to provide tea and coffee to their staff.
However food service in business such as factories or
banks have become more sophisticated then ever and
are sometimes on par with freestanding commercial
restaurants.
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Hospitals
Crude hospitals were know in India and Egypt as early
as 600 BC. The Greeks and the Romans had hospitals
located in their temples and as today these places
served food. In the 1800 proper hospitals were
established and the link between proper medical care
and proper diet or meals that were nutritious was
recognized.
Today in many hospitals food is no longer the terrible
tasting items we all think of. Some hospitals are leading
the way with research how to provide healthy food.

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Commercial Operations
There are three basic commercial food service
operations: independents, chain restaurants and
franchises.
Independent: is an operation owned by an owner or
owners that have more then one property but with no
chain relationship, meaning menus may be different and
operational procedures may vary.
The idea of opening a restaurant is attractive, as we need
relatively little capital to get started, all one needs is an
astute business acumen and a thorough understanding
of what the customers want and you are in business.

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Advantages and
Disadvantages
of
Advantages:
Chain Restaurants

Ready access to cash and credit

Ability to experiment without great risk

Resources to hire staff specialists

Greater access to useful comparative financial
information
Disadvantage:
Bureaucratic rules and procedures can slow
response times to market changes

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Advantages and Disadvantages
of Owning or Managing
Franchise Restaurants

Advantages:
Assistance in opening and operating the
business
Franchisor-sponsored training and materials
Greater exposure and higher revenue because
of extensive advertising and name recognition
Lower costs due to volume purchasing
Tested operating procedures
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(continued) 13
Advantages and Disadvantages
of Owning or Managing
Franchise Restaurants
(

Disadvantages:
Franchise contracts restrict style and
methods of operation, products served,
services offered, dcor, and furnishings
Franchise contracts usually favor the
franchisor

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Non commercial operations
Traditionally, non commercial food service
operations have focused on nutrition and on other
non economic factors. After all people in some of
these facilities receive 100% of their meals in that
facility.
However today the pressure to be cost effective
does not stop at these operations. Hence the need to
manage these operations like a commercial
business. Some institutions are doing this by
managing their own others tend to outsource to large
institutional food service providers.
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Advantages and Disadvantages of
Contract
Management in Noncommercial
Advantages: Facilities
Large management companies have more
resources to solve problems
Ability to negotiate better deals with suppliers
Greater efficiency and therefore lower overall
cost
Allows food service to be operated by
experts, rather than institution administrators

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Advantages and Disadvantages of
Contract
Management in Noncommercial
Disadvantages: Facilities
Management companies can affect the
institutions public image
Some people feel that profit-making
operators do not belong in noncommercial
settings
The institution may become dependent on
the management company

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What is a Food and Beverage
Operation ?
Hotel Restaurants, Bars and Banquet or Convention
facilities
Institutional food service i.e. schools, Hospitals, Nursing
Homes etc.
Pubs, Regular or Theme Bars, Discotheques
Cruise Ship Restaurants and Bars
Free standing Restaurants individually owned or franchised
or chain
Entertainment food service outlets
Leisure and recreation food and beverage service outlets
Events catering
Transportation companies

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Trends in the food service
industry
In the commercial sector the so called meal solution is
on the up and up. People nowadays are very busy and
prefer a company to be able to deliver them a home
cooked meal so to speak.
Convenience, as people are more and more on the go
places that can offer increased convenience over the
competition will certainly win out.
Entu-dining- combining dining with entertainment is
certainly sharply increasing, we not only need to eat but
need to be entertained.

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FoodChapter
and Beverage
2
Management
Organization of Food and
Beverage Operations
Lesson 2
Daniel G. Fuchs
Managing Food and Beverage Operations
Fourth Edition
Adapted by: Daniel G. Fuchs

2005, Educational Institute


Competencies for
Organization of Food and
Beverage Operations
1. Identify a variety of managerial, production, and
service positions that are typical of the food service
industry and describe the roles these positions play
in providing food service.
2. Explain the purpose of an organization chart and
identify the organizational structures of various
kinds of food service operations.
3. Describe several critical issues that a person should
consider before starting a career in food service.

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Organization
This lesson focuses on the organization part of a
food service operation. Organizations are created
to achieve objectives some of which are financial.
The way the organization is structured affects its
ability to achieve objectives.
All objectives must be considered as the
organization is developed.
An organization chart is a diagram showing the
relationship among various employee positions in
an operation.
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People in Food Service
The food service industry is labor intensive: a
large number of people are required to do the
work necessary to attain food service objectives.
Technology has not changed this basic fact.
Most guest demand personalized service, hence
it is unlikely that automation has a significant
impact on our industry.
There are three categories of food service
employees: Managers- production employees-
service employees.

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Three Levels of Management
Top managers:
Long-term plans and goals
Overall business environment
Middle managers:
Shorter-term goals
Keep communication flowing between upper
management and supervisors and employees
Supervisors:
Link between management and employees
Typically use their technical skills

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Line versus Staff Managers
Line Managers are usually directly in charge of
revenue producing departments.
Staff Managers are the managers in charge of
support departments such as HRM or
Maintenance.
Both types of managers are very important as
one could not function without the other.
However in our commercial world the Line
Manager usually has more clout or power within
the organization as they are the revenue drivers.

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Production personnel
The most prominent production manager is the
Executive Chef- in large operations a pure manager
in smaller operations a hands on type of a
manager/cook.
The Executive Steward is in charge of Hygiene and
Sanitation within the F & B department as well as
cleaning all China Glass and Silverware. Usually in
very large operations this is a very important position
as all China Glass and Silver as well as Banquet and
other Restaurant equipment are this positions direct
responsibility.
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Typical Production Positions

Chefsexecutive, sous (assistant), garde-manger,


banquet
Cookssoup, sauce, fish, roast, pastry, relief,
assistant
Bakershead bakers, assistant bakers, pastry chefs
Pantry staff
Stewardschief stewards, porters, dishwashing
employees
Storeroom and receiving employees

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Service Personnel
Service personnel has the most direct guest
contact and is therefore of paramount
importance.
If one thinks about it the most critical interaction
between the organization and the most valued
asset of an organization the guest is left usually
to the lowest paid, least valued and often not
appreciated rank and file staff in the Food and
Beverage department. Guest satisfaction
hence return business is in their hands not ours.

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Typical Service Positions
Dining room managers
Hosts/receptionists
Food and beverage servers
Bus persons
Bartenderspublic and service
Cashiers
Expediters
Runners
Curbside servers

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Organization Charts
It is important to understand that there is not
one right type of organization chart.
The chart can vary from organization to
organization and should be highly individual
and operation specific.
Specific job titles are not fixed and may be
used differently in different organizations.
However, there is an industry norm with
titles so please do not get carried away.
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Career and future in the food
service industry
There are a lot of misconceptions about
working in the food service industry. Fact is all
service jobs are hard and the job of a food
server or food service employee is not different.
However working in a professional environment
providing professional care to customers is not
demeaning but rewarding. Career opportunities
are abundant as there always seem to be
shortage of qualified managers and this part of
the industry is experiencing tremendous
growth.
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Conclusion
The management job within the food
service industry is very challenging as you
are dealing with the image department of a
hotel.
The days are long but the influence yielded
by the positions as well as benefits and fast
track career opportunities make this a very
attractive field of newly graduates to enter.

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Copyright: professor 39
FoodChapter
and Beverage
3
Management of
Fundamentals
Management
Lesson 3
Daniel G. Fuchs
Managing Food and Beverage Operations
Fourth Edition
Adapted by: Daniel G. Fuchs

2005, Educational Institute


Competencies for
Fundamentals of Management

1. Define management and list the steps in the


management process.
2. Describe the management tasks involved in
planning, organizing, coordinating, staffing,
directing, controlling, and evaluating.
3. Contrast primary and secondary groups and
describe managements role in providing
hospitality to all guest groups.

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What is Management ?
What does a manager do ? To put it simply,
managing involves using what you have got
(resources) to obtain organizational goals.
There are many types of resources available
including:
People- Money-Time-Energy-Products-
Equipment- Procedures
All resources are usually limited in supply,
therefore a good manager has to allocate
resources appropriately.
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The Seven Tasks in the
Management Process

Planning
Organizing
Coordinating
Staffing
Directing
Controlling
Evaluating

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Planning
Creating goals and objectives
Developing action plans to reach those goals and
objectives
Effective planning includes:
Gaining access to accurate, complete information
Maintaining good communication with other
managers
Building flexibility into the plans
Making sure that plans are fully implemented

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Organizing
How can we best assemble and use our limited
resources and obtain organizational goals.
Clearly defined targets, goals and objectives are
essential in order for an employee to know what
they have to do. A clear understanding of their
job and related tasks ands duties are equally
essential.
Assigning only one supervisor to each employee
as well as having empowered employees are
equally essential.
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Coordinating
Coordinating is the management task of
assigning work and organizing people and
resources to achieve the organizations
objectives. Coordinating depends on
communication to transmit messages up and
down the organization.
Delegation is an important aspect of
coordinating. Delegation means to relinquish a
certain amount of responsibility and authority to
another person. However final accountability
may not be transferred.
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Staffing
Involves recruiting and hiring applicants. The goal of
staffing is to hire the best qualified people for the job.
The hiring process is of utmost importance in ensuring a
quality work force.
Training and integrating new hires in to the existing work
force is another important challenge.
Once the appropriate amount of staff is hired you need
to assess if they possess the necessary skills. If not
assess their level and identify the gap between current
skills and necessary skills, hence you have your training
plan.

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Directing
Supervising, actively following up what has been delegated

to the staff.

Disciplining, taking corrective action when employees do not

perform to standard.

Scheduling, assigning an work schedule usually in advance

of about 14 days to each staff member.


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Sample Disciplinary Actions
Informal counseling
Meetings between employee and
manager (s)
Written warning (s)
Suspension
Termination

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Controlling
There is no assurance that goals will be attained
just because effective plans have been developed,
resources organized, staff selected and directions
carried out. For this reason you must attend to the
controlling function of management which includes
developing and implementing control systems.
A good control system should alert a manager well
in advance if something is wrong. It is the
managers job to ensure that all company
resources are protected as much as possible.

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Evaluating
Review progress toward achieving
organizational goals.
Measure employee performance.
Assess the effectiveness of training
programs.
Re- develop new programs and structures
in case existing ones do not work properly.

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Integrating the process
Previously we discussed the functions and roles of a
manager. In real life of course the dividing line is not
always so neat. A typical work day a manager may
work on:
Help develop next years budget
Deal with problems caused by improper delegation
Work with another department planning a special
event
Revise job descriptions and job specifications
Carry out routine supervisory activities
Revise standard of food and beverage
Guest and managers interactions
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Managerial Relationships
Primary Groups Secondary Groups
Guests Suppliers
Managers The Local Community
Employees Government and
Owners other regulatory
agencies

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Guests
Guests make up the most important primary
group. Without guests nobody can survive
and the business would have to close.
Managing for guests is difficult because not
two guests are the same.
Understanding the needs and wants of
guests are of vital importance in order to
create guest satisfaction.

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Managers
Most likely you will have another manager
more senior then you, in order to keep your
job you must fulfill your job and achieve the
desired results.
In turn you must ensure that all managers
reporting to you do the same.
Lastly you must maintain a professional and
friendly inter relations with managers in
other departments.
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Employees
Managers not only manage employees they
manage for employees.
Your decisions have an impact on making
the operation a success, and a successful
operation provides employees with a place
to earn a living and feel secure as well as
giving them a purpose in life.
In other words as a manager you manage
for their well being as well as yours
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Suppliers
Your responsibility is to deal with supplier as
a trading partner in a fair and mutually
beneficial manner.
Gone are the days when you dictate to the
supplier as they are dependant on you. You
are equally dependant on them as without
their products you could not operate a hotel.
Suppliers can also be potential guests and
bring business they may also discuss how
they have been treated with other guests.
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The Local Community
To have a good relationship with the surrounding
community is very important.
Nuisance concerns, excessive noise, rowdy guests in the
parking lot managers have to deal with
Environmental concerns, managers have to ensure that
no litter blows to neighboring places and in general
embraces environmentally friendly policies
Entertainment concerns: ensuring that any entertainment
provided is agreeable with the mainstream community
Civic concerns: managers should support local causes
and try to give something back to the local community

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Government Regulatory
Agencies
Government regulatory agencies collect
taxes, issue permits and enforce the law.
Food service managers should
understand the impact as government
agency can have on the operation and
therefore strive to maintain and develop
and a good relationship with the pertinent
agencies.

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The importance of Hospitality
The food service industry is truly a peoples
business.
You must train and develop staff to provide
hospitality related services in such a manner
as to ensure guest satisfaction and hence
create a feeling and spirit of true hospitality.
Creating a positive environment for staff
ensuring that they are happy and in turn they
will ensure that our guests are happy.
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Food and4
Chapter
Beverage
Food andManagement
Beverage
Marketing
Lesson 4
Daniel G. Fuchs
Managing Food and Beverage Operations
Fourth Edition
Adapted by: Daniel G. Fuchs

2005, Educational Institute


Competencies for
Food and Beverage Marketing
1. Explain marketing in terms of delivering guest-pleasing
service.
2. Describe the steps involved in developing a feasibility
study and list the three types of marketing research that
should follow such a study.
3. Describe the elements of a complete marketing plan,
focusing on the roles of sales, advertising, public relations,
and publicity. Compare public relations and publicity for
hospitality operations.
4. Describe marketing tactics that might be used by a
noncommercial food service operation.

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Focus on the Guest
A simple definition of marketing is: the business from the
perspective of the guest.
Of course everyone understands and agrees that it is
important of giving the guest what they want but we also
need to be concerned about pricing.
There are many influences that will make a manager
loose their focus such as: what the managers like, what
the owners like, what the staff like and what their direct
boss like, however ultimately all of these concerns are
not important as the guest must be the ultimate concern.

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Focus on the guest
Deploy strategies that focus on what is best for the
guest
Talk about service on a regular basis
Use guest friendly systems
Exemplify all aspects of excellent guest relations as
they interact with guests
Balance high tech with high touch: that is temper
systems and methods with the personal factor
Market service to the guests
Measure service and make result available to
employees
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Appropriate questions
How important is service in this organization
How do I tell/show my staff about service related
concerns
What are my service strategies
How do I evaluate service levels
What are my service procedures
How do I train staff about service related issues
How do I reinforce my service strategies
Is service a program or a philosophy
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Managers Concerned About Guests
Recognize that service is important.
Develop guest-friendly procedures that
meet the operations standards and goals.
Assess and respond to guests ever-
changing preferences and needs.

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Functions of a Feasibility Study
Identify market area
characteristics.
Evaluate the proposed site.
Analyze competitors.
Estimate demand.
Project operating results.

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Market Area Characteristics
Demographic information
Retail sales volume
Number and types of
businesses
Impact of tourism
Available transportation
Economic stability
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Evaluating the Proposed Site
Availability and convenience of
parking
Traffic flow
Presence of other attractions that
may bring in guests
Site accessibility

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Analyzing the Competition
Location
Type of establishment
Times of operation
Menu prices
Check average
Type of service
Number of seats
Availability of liquor service
Entertainment
Promotional efforts
Chain affiliation
Other service distinctions

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Analyzing the Market

Guest Profile Research


Age
Gender
Frequency of visits to the
property
Employment

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(continued) 71
Analyzing the Market
(continued)

Marketplace Factors/Trends
Changes in demographics
Positive and negative events in the
community, region, state, and nation
Cost of energy and other utilities
Government regulations
Cost of travel

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Steps in a Typical Marketing
Plan
Select target markets.
Determine objectives.
Create action plans.
Evaluate and revise plans as
necessary.

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Special Promotions
Couponing
Product sampling
Contests
Packages
Premiums
Gift certificates
Discounting
Bonus offers
Frequent diner programs

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Copyright: professor 74
Outdoor Sign Advertising
Pros
Low cost
Long life span
Broad reach
Cons
Limited message length
Wasted coverage
Zoning/posting restrictions

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Newspaper Advertising
Pros
Low cost
Broad reach
Effective coverage
Immediacy
Flexibility
Cons
Read or skimmed quickly
Usually seen by only one reader per issue
Poor reproduction quality
Wasted coverage

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Magazine Advertising
Pros
Long life span
Several readers per issue
Can target specific audiences
Excellent reproduction quality
Cons
High cost
Long preparation time needed
Inflexibility
Some wasted coverage

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Copyright: professor 77
Radio Advertising
Pros
Saturate local area
Low cost
Can target specific markets
High message repetition possible
Cons
Short life span
Audio only

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Copyright: professor 78
Television Advertising
Pros
Appealing presentation of sight and sound
Viewers retain message
Extensive coverage
Target markets
Cons
High cost
Long preparation time
Wasted coverage

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Copyright: professor 79
Direct Mail Advertising
Pros
Audience selectivity
Flexibility
Personalized message
Easily stopped or started
Easily evaluated for effectiveness
Cons
High cost
Junk mail image

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Copyright: professor 80
Internet Advertising
One-on-one guest
relationships
E-newsletters
Online reservations
Banner ads

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Internal Sales
Is nothing more but to recognize the different needs
of different guests and let ones creativity run loose.
Colorful F & B displays that are changed at least
once or twice a day
Table tents in rooms and other appropriate places
making guests aware of specials
Cookouts in the lobby during main check in time
cooking tonights special
Specific food promotions while certain food is in
season
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Internal Sales
Gear your entire operation towards creating
more choice, fun and selection while actually
enticing guests to spend more or consume less
in a buffet type of situation.
Have a service to toss the salads at Salad Bars
Offer fish and steak by the ounce
Up sell Liquor or wines whenever possible
Entice customers with a dessert tray

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Copyright: professor 83
FoodChapter
and Beverage
5
Management
Nutrition for Food Service
Operations
Lesson 5
Daniel G. Fuchs
Managing Food and Beverage Operations
Fourth Edition
Adapted by: Daniel G. Fuchs

2005, Educational Institute


Competencies for
Nutrition for Food Service Operations
1. Explain the importance of good nutrition and list and define
the six basic nutrients.
2. Describe the value of recommended dietary allowances, the
My Pyramid program, and nutrition labeling.
3. Describe nutrition concerns as they relate to food service
functions, including menu planning, purchasing, storing,
preparation, and recipe development.
4. Identify the dietary concerns related to calories, fats and
cholesterol, sodium, carbohydrates, food allergies, and
vegetarian diets.

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Balanced Diet
All Human Beings require a nutritious healthy
and balanced diet in order to be and remain
healthy.
While most food service managers do not need
to be a nutritionist they need to understand the
basic of food and dietary requirements
Why is it important for staff to carefully follow
recipes
Procedures for proper receiving and storing food

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Nutrition the science of food
Lets define two terms food and nutrition.
Food is material of either plant or animal
origin that people eat. Once consumed food
nourishes and enables us to grow.
Nutrition is the science of food. When you
study it you will learn how the body is using
the various raw materials and is utilizing
them.
Nutrition can affect your personality, irritability
occurs when a nutritional deficiency occurs.
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The Six Basic Nutrients
Proteins
Carbohydrate
s
Fats
Vitamins
Minerals
Water
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Proteins
Are essential elements in all living body cells. With the
exception of water they are the most plentiful substance
in the body. Proteins are required to build, maintain and
repair all body tissues. Protein helps to build chemicals
that build resistance to disease. Proteins are made of
building blocks called amino acids. Protein can be used
as a energy source. Complete protein is found in: meat,
poultry, fish, egg milk and cheese.
Incomplete proteins are : nuts, beans and dried peas as
well as soy beans, breads and cereals. Fruits and most
vegetables contain very little protein.

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Copyright: professor 89
Carbohydrates
Supply Energy. They are the main source of fuel used for
energy to conduct the body processes such as digestion
and respiration. They also help to maintain proper body
temperature.
Carbohydrate include starches, sugars, and cellulose
and come from plant sources as fruits and vegetables
and grains.
A calorie is a measure of energy contained in food.
The body needs a certain amount of calories to perform
and function properly. If you consume to many calories
the body stores them in form of fat.

03/21/17
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Fats
Are another nutrient that provides energy. Fats may be
classified in to two categories: Saturated ( solid at
room temperature) Unsaturated ( liquid at room
temperature).
Fats can be included in, butter, margarine, vegetable
oil and fat layers in meat.
Hidden fats in ice cream, whole milk products, meat
and egg yolks generally provide two thirds of the fat in
a diet.
Fats are sources of heat and energy for the body. They
provide more energy ( calories) per unit then any other
nutrient.
Fats also contribute to the palatability of foods.

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Vitamins
There are many different vitamins.
Are substances needed to keep the body
functioning properly
Cannot be made by the body must be
provided eating food or taking supplements
Promote growth and aid reproduction, help
digest food, help the body resist infection,
prevent certain diseases and help maintain
mental alertness.

03/21/17
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Copyright: professor 92
Vitamins
Vitamin deficiency can occur. Most often this
happens if we do not intake an appropriate
amount of vitamins or the persons body fails
tom absorb the vitamins.
Vitamins can easily be destroyed. Proper
food handling and cooking methods are of
the utmost importance.
There are tow basic categories: Fat soluble
vitamins are absorbed in to the body and
stored until they are needed.
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Vitamins
Fat soluble are: A,D,E, and K. Since our
body can store these vitamins we do not
need to consume them on a daily basis.
However water soluble cannot be stored
by the body and we must consume these
vitamins on a daily basis or take
supplements. The water soluble vitamins
are all types of B and C.

03/21/17
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Minerals
Are building materials and body regulators. Only a
small percentage of normal body weight is composed
of minerals, but they are essential for building muscle,
bones, teeth and hair. They maintain the water level in
each cell and allow a certain type of chemical reaction
to occur.
Enzymes and hormones that help to carry out bodily
functions contain minerals.
The list of minerals is long such as: Calcium-
potassium-magnesium and others.
Minerals are often found in food in a water soluble
form.
03/21/17
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Water
There is water in every body cell, outside every body
cell, in the blood and in other body fluids. In fact 60% of
an adult and 70% of a babys body is water.
Water serves as a solvent so other nutrients can be used
in the body. Water transports waste from the body
through lungs, kidneys and skin. Its also used as a
building material for cells. Water regulates the body
temperature, it allows perspiration to occur and serves
as a heat carrier as air is lost through breathing. Water is
also a lubricant i.e. saliva. A person should drink about 6
to 8 glasses of water daily to ensure as proper hydration
level.

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Copyright: professor 96
03/21/17
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Copyright: professor 97
Nutrition and Food Service
Manager
Managers of commercial food service
operations should strive to create a menu
that is nutritiously balanced.
However for manager of non- commercial
food service operations this is of the utmost
importance as the people eating with them
are in need of a proper diet. In case of
hospital patients that is their only source of
food intake and it must be healthy and safe.
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Developing Healthier Menus
Offer lean meat and meatless alternatives.
Reduce sodium in soups, sauces, and marinades.
Feature such low-fat and low-sugar foods as fruits
and vegetables.
Reduce portion sizes or make half-portions
available.
Offer fresh-fruit desserts, sugar-free beverages,
unsweetened cereals, and baked items made with
less sugar.

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Menu Planning
Reduce fat and cholesterol in menu items- offer lean
fish, chicken, turkey and veal alternatives.
Reduce sodium- many consumer wish to avoid high
sodium ( salt) items. Offer most menu items without
salt if the guest wishes they can add it themselves
table side.
Use strategies to reduce calories- reduce the amount
of fat and sugar used in dishes, reduce portion size
or offer half portions or Lady portions
Use strategies to reduce sugar- substitute with
cinnamon or nutmeg, offer fruit desserts instead of
sweet desserts, offer sugar free drinks and natural
fruit juices.
03/21/17
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Nutrition concern in Purchasing
Bear in mind that purchasing chicken legs
or wings these part have more fat then the
more expensive no skin chicken breast.
Lower grade meat is not only tougher but
also has a much higher fat content.
For products to be ground use only top
quality raw material in order to avoid
excessive fat particles.

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Copyright: professor 101
Nutrition Concern in Storing
If you do not store food properly no need to buy top
quality raw ingredients.
Minimize the time between delivery and usage,
daily delivery would be perfect, ensure that the
product is actually fresh.
Handle fresh products carefully avoid bruising
For many products it is best to store them in their
shipping container
Keep fresh items wrapped avoid exposure to air,
humidity and light
03/21/17
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Copyright: professor 102
Nutrition Concern in Storing
Minimize storage times of partially or fully processed
fruits and vegetables.
Make sure that the proper storage temperature,
humidity, and air circulation requirements are
constantly met.
Dry storage items should be kept cool, dry and in a
well ventilated area. Ideal temperature is about 15
degrees or 60 degree Fahrenheit
Fresh fruits and produce should be stored in
refrigerated the ideal temperature is about 5 degrees
or 40 degrees Fahrenheit
Frozen food should be at 0 degrees Fahrenheit or -18
degrees Celsius. Proper packaging is essential.
03/21/17
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How Nutrients Can Be Lost
in Food Storage and
Preparation
Cleaning and trimming, do not trim more then necessary, nutrients in
vegetables are located just below the skin
Oxidation, some food loose all nutrients if exposed to large amounts of
air or ground very small.
Light, Vitamin B2 elements are destroyed by light
Heat, the longer the food is cooked the more nutrients are generally
lost.
Water, a large number of vitamins are water soluble, avoid soaking food
in water to long
Misuse of ingredients, baking soda for example destroys many vitamins
and should not be used in cooking or baking like MSG as well.

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Contemporary Dietary Concerns
Calories
Fats and
cholesterol
Sodium
Carbohydrates
Food allergies
Vegetarianism
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Varieties of Vegetarianism
Vegan
No foods of animal origin, including milk, cheese, and honey
Lacto-vegetarianism
Dairy products in addition to a meatless diet, no eggs
Ovo-vegetarianism
Eggs in addition to a meatless diet, no meatless diet
dairy products
Lacto-ovo vegetarianism
Eggs and dairy products

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Copyright: professor 106
Food and Beverage
Chapter 6
Management
The Menu
Lesson 6
Daniel
Managing G.Beverage
Food and Fuchs Operations
Fourth Edition
Adapted by: Daniel G. Fuchs

2005, Educational Institute


Competencies for
The Menu
1. Identify the three basic categories of menu pricing styles
and describe the two varieties of menu schedules.
2. Describe the differences in breakfast, lunch, and dinner
menus and list some of the most common specialty
menus.
3. Explain the steps involved in menu planning and menu
design, and explain the value of periodic menu
evaluation.
4. Compare pre-costing/ post-costing software and menu
engineering software.

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The Menu
Everything starts with the menu. The menu dictates
much about how your operation will be organized
and managed, the extent to which it will meet its
goals, and even how the building itself or certainly
the interior should be designed and constructed.
Because almost all guests will look at the menu
ensure that it conveys the correct message.
The menu also dictates service styles and
production methods as well as purchasing policies
and other operational concerns.

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Three Menu Pricing Styles
Menus come in all sizes and shapes and
styles however three distinctive menu types
exist:
Table dhte
la carte
Combination
table dhte/ la carte

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Table D Hote
This menu type offers a complete meal for
one price. Some table dhote, menus offer
guests choices of appetizers, soups,
salads and main choices.
Accompaniments usually are fixed and not
selectable, usually there is a dessert
selection available all for one price. This is
why the French also call this menu type
prix fixee.
03/21/17
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Copyright: professor 111
A la Carte or combination
With this form of menu you put the guest in
charge of his/her own dining experience.
Guests select what type of dishes and how
many they want and you just list all of your food
available.
If you combine a la carte and table dhote you
may offer a limited choice of appetizers, salads,
soups and desserts and the choice of main
courses carries a different price tag.

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Copyright: professor 112
Meal Periods
Breakfast: The most important meal of the day, simple
fast and inexpensive are key words.
Lunch: the time that guests have for lunch is very
limited and therefore being able to serve customers
within a short period of time a delicious menu that is
affordable is key.
Dinner: despite the fact that one should eat a light
dinner for most people this is the main meal. Now
guests have time to relax and enjoy not only the food
but the congenial surrounding and service and
ambience. Variety is the key to success here.
03/21/17
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Copyright: professor 113
Common Specialty Menus
Childrens Brassery
Senior citizens Italian
Alcoholic beverage Thai
Dessert Chinese
Room service
Japanese
Take-out
Theme
Banquet
California
Buffet or a la discretion
American Bistro Formal
Cycle Menu Menu Gastronomique
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Copyright: professor 114
Know Your Guests
Interviews
Surveys
Comment cards
Trade journals
Production/sales
records

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Know Your Operation
Theme or cuisine
Budget
Ingredient availability
Equipment concerns
Personnel concerns
Peak volume production and operating concerns
Sanitation concerns
Layout concerns

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Copyright: professor 116
Sources for Menu Item Recipes
Old menus
Professional
cookbooks
Trade magazines
Consumer
cookbooks
The Internet
03/21/17
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Copyright: professor 117
Typical Order of Menu Item
Entres
Selection
Appetizers and soups
Starches (potatoes, rice, breads) and
vegetables
Salads
Desserts
Beverages
03/21/17
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Copyright: professor 118
Truth-in-Menu Considerations
Grading
Freshness claims
Geographical origin
Preparation
Dietary or nutrition
claims
Portion sizes
03/21/17
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Copyright: professor 119
Steps in Menu Layout
Sequence
Placemen
t
Format
Typeface
Artwork
Paper
03/21/17
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Copyright: professor 120
Common Menu-Design
Mistakes
Menu too small/too large
Type too small
No descriptive copy
Every item treated the same
Some food and beverages not listed
Clip-on problems
Basic property information not included
Blank pages

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Menu Evaluation
Have guests complained
What have guests stated about the menu
How does the menu compare to the competition menu
Has the average guest check increased or decreased
Is there enough variety
Are the menu items priced correctly
Is the menu attractive
Does it match the operations theme
Do we use descriptive language
Are the menus maintained properly

03/21/17
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Copyright: professor 122
Contribution Margin Classifications
Stars
High in popularity;
high in contribution margin
Plow horses
High in popularity;
low in contribution margin
Puzzles
Low in popularity;
high in contribution margin
Dogs
Low in popularity;
low in contribution margin

03/21/17
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Copyright: professor 123
Menu Management Software
Menu management software helps managers plan,
price and evaluate menus by answering questions as:
What is the most profitable price to assign a menu
item
At what price level and mix of sales does a food
service operation maximize its profits?
Which current menu items requires re-position, re
pricing or removing from the menu
How should daily special be priced
How can the success of a menu item or menu change
be evaluated

03/21/17
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Copyright: professor 124
Pre- costing /Post costing
software
Pre costing analysis enables managers to determine a
menus profitability before actual production and service.
Projections of cost of sales figures allows managers to
closely monitor the margins before actual production and
service begins.
Post costing analysis differs in that it is based on actual
sales not forecasted sales. Post costing software
conducts a special type of sales analysis that multiplies
the number of menu items sold by standard recipe cost
to determine a potential ( ideal) food cost for a
completed meal period.

03/21/17
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Copyright: professor 125
FoodChapter
and Beverage
7
Management
Standard Product Costs and
Pricing Strategies
Lesson 7
Daniel G. Fuchs
Managing Food and Beverage Operations
Fourth Edition
Adapted by: Daniel G. Fuchs

2005, Educational Institute


Competencies for
Standard Product Costs and
Pricing Strategies
1. Summarize the benefits of standard recipes and
explain the procedures involved in using standard
recipes.
2. Determine standard food and beverage costs.
3. Describe the four subjective menu pricing methods,
explain the value of the two main objective pricing
methods, and describe the role of pricing in
managing a successful and competitive food and
beverage

03/21/17
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Copyright: professor 127
Standard Product Cost and Pricing
Strategies
When planning a menu managers must not
only take in to consideration the financial
preference of guests but the financial goals
of the food service operation.
In order to remain competitive yet profitable
pricing strategies and standard recipes and
maintenance of data facts and figures are
of the utmost importance.

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Advantages of Standard
Recipes
Consistency of quality, flavor, portion
size
Efficient purchasing practices
Preparation of correct number of items
Effective scheduling
Less supervision required
Elimination of guesswork
Less reliance on employee memory
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Copyright: professor 129
Steps for Standardizing
Recipes
Select time period for development.
Have the chef or bartender describe preparation.
Double-check recipe by observation.
Record the recipe.
Share the recorded standard recipe with staff.
Test for quality and quantity.
Train employees in standard recipe use.

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Copyright: professor 130
Recipe Management Software
Recipe management software maintains two of the
most important files used by an integrated food
service computer system: an ingredient file and a
standard recipe file.
Ingredient file: contains important data about each
purchased ingredient, including code numbers and
descriptions as well as each ingredients:
Purchase cost per unit
Issue unit and cost per issue unit
Recipe unit and cost per recipe unit

03/21/17
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Copyright: professor 131
Recipe Management Software
The initial creation of an ingredient file and the
subsequent file updates ( daily, weekly monthly)
is often a challenging task. The benefits however
outweigh the cost of creating and maintaining
the file. When the ingredient file can be
accessed by other management software
programs, especially by an inventory software
program ingredient data can easily be
transferred to appropriate software programs.

03/21/17
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Copyright: professor 132
Standard Recipe File
Contains all recipes for all menu items.
Many programs now feature a warning sign
if the cost of a ingredient has gone up or
down in order to let the manager know and
take the right decision.
Each menu items should have a fully
comprehensive standard recipe ensuring
consistency in preparation and uniformity
of taste and presentation and costing.
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Copyright: professor 133
Name of Dish: Garlic chicken with pasta on an onion herb sauce. Pollo con Aille et
Spaghetti Cippolla.
Dated: January 2006 Serving unit: 1

Ingredients: Cost: TB
chicken 50
150 grams spaghetti 15
1 onion 2
3 gloves of garlic 2
Olive Oil 3soupspoons 12
Herb mixture 6
Total Cost: 87
Preparation method:
Season the chicken and place in oven, chip onions very fine and slice garlic.
Once the chicken is 75% cooked take out of oven and cut in piece. Pan fry the chicken together with the
garlic until finish the olive oil and add the finely chopped onions cook until nice and hot. Boil water
ands add salt and oil ass the spaghetti until cooked at dente.
Serving method:
Place the chicken with garlic on the 9 oclock position on a large plate.
Place swivels of pasta on the same plate 3oclock position. Top with onion sauce.
Beverage recommendation:
Sparking mineral 03/21/17
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Copyright:
water, red wine preferably professor
Chianti or heavy red wine like 134
Montepulciano or Rosso di Montalicino.
Developing standard recipes
Select the size ( weight of each ingredient
you wish to serve the size of the plate and
how you will display it on the plate.
List all ingredients in the order you will use
them
Decide whether you will measure it or weigh
it or both
Whenever possible express all quantities in
amounts that are easy to use
03/21/17
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Copyright: professor 135
Developing standard recipes
Record the preparation method in great
detail ensuring that everyone understands
what you mean by it.
Provide directions for portioning indicate the
size of the portion list any garnishes or other
sauces you may need.
Keep yield in mind, ensure that you write
down pre cooked weight or cooked weight
as they are different.
03/21/17
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Copyright: professor 136
How to implement standard
recipes
Start to cook using the standard recipe during a quiet
period in your kitchen showing all kitchen staff . Have a
copy of the standard recipe available for each kitchen
staff member and a set of embossed standard recipes
should be available both in the kitchen and in the service
station.
Once the dish is completed, lay it out on the plate and
arrange it perfectly. Take a photo of the finished item if
you are happy with it. Compile all standard recipes, have
them embossed and displayed both in the kitchen and in
the service station so that the wait staff can also see
what the dish should look like.

03/21/17
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Copyright: professor 137
Cost Calculations
Portion cost
Divide the sum of a recipes ingredient costs by the
number of portions the recipe yields.
Total meal cost
Add the portion costs of all meal components.
Contribution margin
Subtract food costs from food revenue.
Drink cost percentage
Divide drink cost by drink selling price and multiply
by 100.

03/21/17
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Copyright: professor 138
Subjective Pricing Methods
Reasonable
The price management believes will represent
a value to guests
Highest
The highest price management thinks guests
will be willing to pay

03/21/17
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Copyright: professor
(continued) 139
Subjective Pricing Methods
(continued)

Loss-leader
An unusually low price set for certain menu
items set with the assumption that loss
leaders will draw in guests who will order
more expensive items once they are on the
premises
Intuitive
The price management guesses will appeal to
guests; trial-and-error
03/21/17
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Copyright: professor 140
Objective Pricing Methods
Desired food cost percent markup
Selling price = items standard food cost
divided by desired food cost percent
Profit pricing
Forecasted revenue- non food expenses-
required profit= food cost : by forecasted
revenue = ideal food cost %

03/21/17
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Copyright: professor 141
Competition and Pricing
One of the most important concerns in
pricing relates to your competition. Most of
us do have an operation that has a similar
type of menu and standard of quality.
If you wish to attract more customers you
may lower the price below your competitors
Raising prices may also be a strategy, you
would need to sell less menu items to
maintain your margins.
03/21/17
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Copyright: professor 142
Food and Beverage
Chapter 8
Management
Preparing for Production
Lesson 8
Daniel
Managing G.Beverage
Food and Fuchs Operations
Fourth Edition
Daniel G. Fuchs

2005, Educational Institute


Competencies for
Preparing for Production
1. Describe the various roles of purchasing,
receiving, storing, and issuing as each
function relates to food production.
2. List the benefits of technology use in the
production of food and beverages.

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Copyright: professor 144
Purchasing
Many activities make up the purchasing process.
F & B staff need products in order to prepare
food and beverages to sell to the customers.
Money can be made or lost depending upon how
well your purchasing department performs their
duties .
A good purchasing program is of the utmost
importance to the financial success of the
property.

03/21/17
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Copyright: professor 145
Choosing a Supplier
Location
Facilities
Financial stability
Technical ability
Honesty and
fairness
Dependability
03/21/17
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Copyright: professor 146
Sample purchasing specification

Purchasing specification # 1
Beef tenderloin Country of origin:
US
Quality grade: USDA grade 1 A
Specifications:
Meat should be aged about 90 days, dark red in color and fresh.
Frozen or pre frozen is of non-acceptable quality. The fat content
should be not more then 5.5 % of the gross weight.
Purchasing unit: per piece 300 grams each

03/21/17
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Copyright: professor 147
Techniques to Get Lower
Negotiate with the seller.
Prices
Consider lower quality products.
Evaluate need for products.
Discontinue supplier services.
Combine orders.
Reevaluate expensive items.
Pay cash.
Speculate on price trends.
Change purchase unit size.
Be innovative.
Take advantage of suppliers promotional discounts.
Bypass suppliers.

03/21/17
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Copyright: professor 148
The Receiving Process

Inspect products against purchase order.


Inspect products against purchase
specifications.
Inspect products against delivery invoice.
Accept products.
Move products to storage.
Complete paperwork.
03/21/17
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Copyright: professor 149
Quality Control in Storage
Rotate food stocks.
Store food at proper
temperatures.
Clean storage areas.
Ensure proper ventilation.

03/21/17
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Copyright: professor 150
Reducing Inventory Costs
Carry a smaller amount of inventory.
Make certain minimum/maximum
inventory levels are correct.
Carry fewer product types.
Refuse to accept early deliveries.

03/21/17
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Copyright: professor 151
Receiving Alcoholic Beverages
Open cases and check bottles for
accuracy.
After receiving, immediately move
beverages to secure storage areas.
When possible, assign purchasing and
receiving tasks to separate individuals.

03/21/17
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Copyright: professor 152
Ethical Concerns in Purchasing
Purchasers must meet high ethical standard to
preserve one of their most valuable business
assets: their personal and professional integrity.
Purchasers are obliged to obtain the best and
most fair deal for the company that they work for
regardless of other influences such as dealing
with family and friends or personal gain.
Each company should have a fully
comprehensive purchasing policy that is easily
monitored and controlled.
03/21/17
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Copyright: professor 153
Space and Equipment
Purchasing departments are usually an after
thought. Despite that a certain amount of
space must be allocated in order for
purchasing to be effective.
A office with computer and phone, lockable
cold and dry storage space, weighing scales
and a hand cart are essential tools of a
proper purchasing department.
Essentially there are three concerns with
storage: Security- Quality-Record keeping
03/21/17
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Copyright: professor 154
Security
Think of store rooms as bank faults and the
food and beverage products within as money.
In many operations products collectively worth
thousands of dollars is just laying around
accessible to anyone that wants to take some.
All storage areas and fridges and freezers
must be lockable
Precious storage, keep very expensive items
in specially locked cages within the locked
storage areas.
03/21/17
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Copyright: professor 155
Security
Limited access: Allow only authorized personnel
access to the storage areas. Keep storage areas
locked except when issuing products.
Effective perpetual inventory system: Monitor your
inventory on a daily perpetual basis
Central inventory control, reconcile inventories
after each shift
Secure design, walls should be extended to the
ceiling and locks should be not to flimsy. No
ceiling tiles and easy to open windows.
Lighting and monitoring: adequate lighting and a
close circuit TV usually does the trick.
03/21/17
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Copyright: professor 156
Quality
Ensure that in the storage as well as the
production areas they enforce and use :
FIFO FIRST IN FIRST OUT.
This should be common sense but often is
not done. Please ensure that you color
code each item ( have one color for each
day of the week) and mark each item with a
waterproof marker: green for the receiving
date and red for the expiry last use date.
03/21/17
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Copyright: professor 157
Internal Issuing
The store room should have certain opening
hours and each food and beverage outlet must
complete a internal requisition form signed by an
official and hand it to the store room at a certain
time. The store room in turn will then sign out
each item listed on this internal form and deliver
the goods to each outlet. Nowadays with
computers each item requested can be bar
coded and the appropriate charge assigned to
the appropriate outlet.

03/21/17
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Copyright: professor 158
Special Beverage Management
Concerns
Most of the control procedure that work for food
also work for beverages. However there are
some special concerns about beverage storage.
In general there seems to be less competition in
the beverage area then in food. Most supplier
only carry a certain brand and the cost per unit is
usually substantially higher then food items.
Therefore extra care to receive bottles of
beverage and swiftly moving them in to storage
is of vital importance.
03/21/17
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Copyright: professor 159
Brand levels
House brands: Are usually low quality liquor and
wines as well as cheap domestic beer
Call Brands: are usually mid range type of liquor
and wines and premium domestic or inexpensive
imported beers.
Top brands: are usually high end type of liquor and
wines as well as the best quality imported beers.
All of these bottles should be stored separately in
special secure storage. One bottle of Louis
Roederer Crystal costs wholesale US 200
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Internal Beverage Issuing
Have established par stock per bar
Have a bottle safe per bar
Color code each bottle
Issue full against empty
Record breakage and have it signed by a
manager and keep the throat of the bottle
and glass piece with the color code on it.
Accurate recording and cost allocation
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The role of technology
Suppliers and hotels or restaurants can
now link orders through the world wide web.
Some suppliers create a web page per
clients updating prices of products normally
purchased by this client and an easy to
complete order form orders are then
forwarded to the packing and shipping
department, invoices and delivery notices
automatically generated.
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Food and Beverage
Chapter 9
Management
Production
Lesson 9
Daniel
Managing G.Beverage
Food and Fuchs Operations
Fourth Edition
Adapted by: Daniel G. Fuchs

2005, Educational Institute


Competencies for
Production
1. Explain how production planning can help food
service operations to meet and exceed guest
expectations.
2. Identify the major functions and basic principles of
food production.
3. Describe proper preparation and cooking methods for
fruits and vegetables.
4. Identify and describe the four common characteristics
of meat and poultry and summarize their cooking
considerations and methods.

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(continued) 164
Competencies for
Production
(continued)

5. Describe cooking considerations when preparing fish,


eggs, and dairy products.
6. List common ingredients used when preparing baked
products and explain the effects each has on the
finished products
7. Describe how to meet or exceed guest expectations
when making and serving coffee and tea.
8. Outline the primary concerns of managers during food
and beverage production, including various control
activities used to address these concerns.
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Basic Food Production
Principles
Begin with quality food.
Make sure food is clean.
Make sure food is handled properly.
Use proper seasonings.
Use the right preparation techniques and equipment.
Follow standard recipes.
Do not cook in quantities that are larger than necessary.
Serve food as soon as possible after preparation.
Serve hot food hot and cold food cold.
Make every presentation something special.
Never be satisfied with a less-than-excellent product.

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Fresh Fruits
The term fruit refers to the matured ovary of a plant ,
including the seeds. Normally only ripe fruit is used for
food production. Fruit costs are affected by:
Perish ability ,Pesticides, Weather conditions, consumer
preferences and processing.
Take pre caution when working with fruits, washing is a
must. Fresh fruit should be handled as little as possible
to avoid bruising. To prevent darkening of fruits after
cutting place in orange or lemon juice and add a bit of
sugar.
Remember fruits are better cold then cooked.

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Classification of Vegetables
Rootssweet potatoes, beets, carrots, parsnips, and
turnips
Tubers or underground stemspotatoes
Bulbsonions, garlic, and leeks
Stemscelery, rhubarb, and asparagus
Leaveslettuce, spinach, and cabbage
Flowerscauliflower, broccoli, and artichoke
Pods and seedsgreen beans, peas, and lima beans
Sproutssoybeans and alfalfa
Vegetable fruitstomatoes, eggplant, squash, okra,
peppers, and cucumbers

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Vegetables
Vegetables are rich in minerals and vitamins. They
generally cost less when they are in season and taste
better.
Many food service operations purchase huge
quantities of vegetables when in season and then
shock freeze and vacuum pack them and keep them
frozen for future use.
Careful washing is important when handling
vegetables, if they are a bit wilted you can rejuvenate
them washing in ice water and the cover with ice to
recoup their crispness.
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Common Types of Salads

Tossed salads
Cabbage slaws
Pasta salads
Fruit salads
Hot vegetable
salads

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Fruit and Vegetable salads
Use only fresh and ripe products
Use a variety of colors
Use a variety of textures: crisp, smooth, combinations work
well mushiness is not accepted
Use the right cleaning and cutting tool and clean cutting
boards
Freshen vegetable sin cold water then drain well before using
Chop or cut salad ingredient in pieces that are uniform in size,
avoid crushing
Handle prepared salads gently do not crush
Add the salad dressing just before serving
Keep salad and other ingredients in the fridge until using

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Dressings and Marinades
Salad dressings and marinades are special
enhancements that are typically coupled with
vegetables and fruits. Dressings are usually
emulsions which can be separated in to stable
and unstable emulsions.
Stable emulsion is a mayonnaise base and a
unstable emulsion is oil and vinegar as they
would separate when standing.
Marinades are seasoned liquids and usually
used to enhance flavors or to tender meat.
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Fruit and Vegetable Garnish
Fruits and vegetables are frequently used for
the purpose of garnishing a plate of food.
Especially in the Chinese cuisine there seems
to be an infinite amount of fruit and
vegetables carvings in all sizes and shapes.
In the western cuisine this trend is abating
and is only used for Buffets or for large
banquets.

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Fruit and Vegetable Cookery
Preparation for cooking is the same for
vegetable or fruit: Wash them and peel and cut
them in to the desired sized pieces or indeed
whole.
The general cooking principles are simple, the
preparation goal is to keep as many nutritional
values as possible. Usually only a very small
amount of water is needed to cook them until
tender with a bit of a bite left to them. Do not
overcook.
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Cooking Methods
Cooking methods: Roasting
Boiling Grilling
Poaching Frying
Stewing Paper bag (en
Braising papillotte)
Steaming Microwave
Baking Pot roasting

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Boiling:
Definition: Boiling is the cooking of prepared foods in a liquid at
boiling point. This could be water, court-bouillon, milk or
stock.
Purpose:
The purpose of boiling is to cook food so that is:
Pleasant to eat with an agreeable flavor
Suitable texture, tender or slightly firm according to the food
Easy to digest
Safe to eat
Boiling methods:
There are two ways of boiling:
]
Place food in a boiling liquid, re-boil, then reduce the for gentle
boiling tot take place, this is known as simmering
Cover food with cold liquid, bring to the boil, then reduce the heat to
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Poaching
Definition:
The cooking of foods in the required amount of liquid at just below
the boiling point.
Methods:
Shallow poaching:
Certain foods for example fish and chicken to be cooked to in a
minimum of liquid. The liquid should never boil.
Deep poaching:
Eggs are cooked in app. 8 cm of gently simmering water.
Stewing:
Definition: Stewing is the slow cooking of food cut into piece and
cooked in the minimum amount of liquid, the food is served together
with the liquid.
Braising
Definition:
Braising is a method of cooking in the oven unlike roasting or baking
the food is cooked in liquid in a covered pan, casserole or
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cocotte. It is a combination of stewing and pot roasting.
2005, Educational Institute
Steaming
Definition: Steaming is the cooking of prepares foods by steam (moist
heat) under varying degree of pressure.
Baking:
Definition: Baking is the cooking of food by dry heat in an oven in
which the action of the dry convection heats is modified by steam.
Methods:
Dry baking: When baking, steam arise from the water content of the
food, this steam combines with the dry heat of the oven to cook
the food i.e. cakes, baked potatoes etc.
Roasting:
Definition: Roasting is cooking in dry heat with the aid of fat or oil in
an oven or on a spit. Radiant heat is the means of cooking when
using a spit; oven roasting is a combination of convection and
radiation.
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Grilling:
Definition: This is a fast method of cooking by radiant heat
sometimes know as broiling.
Frying
Shallow frying:
Definition: Shallow frying is the cooking of food in a small quantity
of pre heated fat or oil in a shallow pan or flat surface( griddle
plate)
Deep frying
Definition: This is the cooking of food in pre heated deep oil or
clarified fat.
Pot Roasting;
Definition: Pot roasting is cooking on a bed or root vegetables in a
covered pan. This cooking method ensures the retention of
maximum flavor of all food items.
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Paper bag cooking:
Known as papillote, this method of cookery in which is tightly sealed
in an oiled greaseproof paper or foil so that during cooking
no steam escapes and maximum natural flavor and nutritive
value is retained.
Thick items of food such as veal chops, red mullet, may be partly and
quickly pre cooked, usually by grilling or shallow frying, then
finely cut vegetables, herbs and spices can be added. The bag is
then tightly sealed placed on a lightly greased tray and cooked
in a hot oven. When cooked the food is served in the bag and
opened by or in front the customer.
Microwave cooking:
This method of cooking and re heating of food using a high frequency
power in a microwave oven powered by electricity. The
microwaves are similar to those which carry television from the
transmitter to the receiver but are of higher frequency. The
microwaves activate the water molecules or particles of food
and agitate them, causing
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professor the
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food.
Cooking Uses for Eggs
Binding and coatingeggs help make ingredients
stick together
Leavening agentbeaten egg whites increase a
products volume and make it lighter
Emulsifying agentegg yolks are used to prevent the
separation of ingredients
Interfering substanceeggs prevent ice crystals from
combining to create a larger mass
Clarifying agentegg whites trap particles so they can
be removed

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Common Baking Ingredients
Flourmade by grinding and sifting wheat,
rye, barley, or corn
Leavening agentsused to make dough
light and porous by incorporating air or by
forming gas
Fatcreates a tenderizing effect by coating
flour particles and preventing them from
coming together

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(continued) 182
Common Baking Ingredients
(continued)

Liquidsused to hydrate starch and gluten;


used to dissolve salt, sugar, and baking
powders
Eggsused to incorporate air into batter,
add flavor and color, and add rigidity to
structure of baked products
Sugaradds sweetness, creates a
browning effect, and serves as a yeast food
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Preparing Meat and Poultry
Meats and poultry are the most important
and expensive items, therefore great care
in purchasing and preparation should be
taken.
Muscle fiber: Muscle is made of fibers held
together by connective tissue. The
thickness of the fiber and the size of the
fiber bundles determines the grain of the
tissue.
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Preparing Meat and Poultry
Connective tissues holds together the meat, muscles
and tendons. There are tow types of connective
tissues:
Collage white which breaks down when heat is applied
Elastin yellow which does not break down when
heated.
Tender meat has more collagen then elastin
Fat if distributed throughout the meat is called marbling
and contributes to the flavor.
Bone is not edible, a high proportion of meat per bone
is favorable as this will reduce the cost.

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Tenderness
Tenderness is very important in selecting and
preparing and serving meat and poultry.
The least used muscles ( loin, and rib cut) are
more tender then fully developed muscles
such as chuck and round.
Temperature influences tenderness the higher
the cooking temperature the tougher the
meat, especially if it is over cooked.

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Preparing Fish and Seafood
There are two types of edible fish: fin fish that have a
bony skeleton and come from either salt or fresh
water and shellfish that do not have a bony skeleton
and come mainly from salt water.
There are two types of shell fish: Mollusks have hard
hinged shells such as: Oysters, clams, scallops and
mussels and crustaceans have segmented shells
( lobsters, shrimp or crabs )
Do never over cook as otherwise all fish and seafood
will turn mushy and this would be unacceptable

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Coffee
There are many types of coffee beans available
some more strong then other. However coffee
should never be made with boiling water as this
burns the beans and makes them bitter. Coffee
should never be held for more then an hour as
it turns bitter after that.
Coffee made to be Ice coffee is often made
double strong to prepare for the dilution with
the Ice.

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Tea
Tea can be made either from loose leafs or
from tea bags. Water should be heated to
the boiling pint and then poured over the
tea. The teapot should be heated prior to
pouring the water and the tea cups should
also be hot beforehand.
Tea should be allowed to steep for no longer
then 5 minutes and then be served.
There are many flavor available.
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Food and Beverage
Chapter 10
Management
Food and Beverage Service
Lesson 10
Daniel
Managing G.Beverage
Food and Fuchs Operations
Fourth Edition
Adapted by: Daniel G. Fuchs

2005, Educational Institute


Competencies for
Food and Beverage Service
1. Identify and describe four types of table service
and at least two other food service categories,
as well as the ingredients of an enjoyable dining
experience for guests.
2. Summarize pre-opening concerns and activities.
3. Describe what goes into providing good service
to guests and describe a sample service
sequence, including procedures for serving
alcoholic beverages with care.

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(continued) 191
Competencies for
Food and Beverage Service
(continued)

4. Identify the computer hardware and


software used in the service process
and describe proper usage procedures.
5. Explain revenue control procedures for
food servers and beverage personnel.
6. Explain and use suggestive selling and
beverage selling techniques.
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Types of Service
Table
Plate (American)
Family-style (English)
Cart (French)
Platter (Russian)

Buffet
Cafeteria

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(continued) 193
Types of Service
(continued)
Other types
Quick (fast-
food)
Deli
Counter
Tray
Take-out
Room
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Standard Operating procedures
The primary goal is to provide our guests
with an enjoyable time and quality food and
beverages time and time again.
This goal requires a setting of a standard that
must be reached consistently.
Tasks must be identified and standardized
Standards must be measurable and all
employees trained to achieve these
standards.
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Guest Service Training
Servers are more then carriers of plates and order
takers. A well trained food server is a
distinguished professional that can greatly assist
the guests experience in our establishment.
The food server should posses the following
knowledge and skills:
Complete information about our operation and
facility
Have a service mind and smile easy and natural
smile
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Guest Service Training
Is able to pronounce all food items on the menu correctly
Knows all ingredients of all dishes as well as preparation
methods
Can recommend a suitable beverage to each dish and
be able to describe the taste
Use a point of sales cash register system, computer
Be proficient in all service procedures and standards
Be attentive at all times without being obtrusive
Constantly provide information and service the table as
required by the guests

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Teamwork
Corporation and good communication between
kitchen, bar and dining room personnel is vital to
the success of any restaurant. Making the
guests experience enjoyable is not the job of
one person but a concentrated and orchestrated
team effort.
Teamwork builds morale and esprit de corps and
spirit that guests can recognize and appreciate
as well as making working time for the staff more
pleasurable.
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Pre-opening Concerns and

Activities
Inspecting facilities
Following reservation
procedures
Assigning food server stations
Performing side work
Holding food server meetings

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Factors Affecting Table Assignment
Number of seats
Type of service style used
Expected guest turnover
Experience of the server
Whether any servers are being trained during the
shift
Distance to the kitchen and bar
Variety of menu items
Number of food servers scheduled for a specific
meal period

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Providing guest service
Guests should be welcomed properly and warmly
in to the restaurant. If the dining room accepts
reservations we should ask if they have one. The
Host then proceeds to seat the guest and handles
any special table request if possible. In most
countries smoking is no prohibited in restaurants if
not ask if smoking or no smoking. Always provide
the best available table. The Host has to monitor
guest levels for each food server and ensure a fair
distribution of the work load. There is no industry
standard in how you should provide the service
each operation must choose their own standard.

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Suggestive Selling
Techniques used to encourage guests to buy
certain menu items with the objectives of
increasing sales of the most profitable items
and increasing the check average.
However suggestive selling is to enhance the
guests experience and suggest other items that
patrons might enjoy.
If done discreetly guests will appreciated and
the business will most certainly be increased.
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Special situations
There are a multitude of special situations in
a food service business.
We are dealing with people some of them in
hurry, some of them very difficult and some
of them rude and abusive and most of them
very nice and polite.
This challenge to at least attempt to please
everyone is what makes this job so
interesting never are two days a like.
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Dram Shop Acts
Laws that state that bartenders, servers,
and owners can be held jointly liable if
they unlawfully sell alcoholic beverages to
a minor or an obviously intoxicated person
who then causes injury to others.
It is the operations responsibility to ensure
that none of our patrons leave drunk.
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Intoxicated guests
Guest should be rated : green- no cues of visible
intoxication- yellow- caution the guest is not yet
intoxicated but you should be concerned- red-the
guest appears visibly intoxicated and should not
be served alcohol.
If a guest is intoxicated or become intoxicated
the staff should alert other staff and the manager.
Deal with caution with a drunk person they do
not understand or listen to reason.

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Intoxicated guests
Alert back up
Remove alcohol from guests sight and reach
Be non judgmental
Be firm
Minimize confrontation
Remind the intoxicated guest that driving
intoxicated is against the law and suggest
alternative mode of transportation
Keep a personal record of the incident

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Point of Sales Cash Register
Systems
We have come a long way from manual cash
registers to cigar boxed with calculators on top to
todays state of the art Point of sales cash register
systems, totally interfaced with other property
management software including production
software for F & B and Purchasing software.
Todays cash registers are essentially high
powered computers with added features. Such as
touch screen, remote order pad and integrated in
to automated beverage dispensing systems.

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POS systems
Essentially all POS systems follow the same approach.
Each server is issued with a personal ID code or a pen
that can be used as an manual identification key.
Before the shift the server and manager verifies that the
servers personal pin code is empty and set to 0.
The server has to enter a table number first and the
amount of people to be served. Then can key in all food
and beverage orders. If an item has to be added the
waiter simply keys in the table number and can add any
item so desired. At the guest request a check can be
neatly printed out.

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Lesson 11
Food and Beverage Cost Control

by Jack E. Miller, Lea R. Dopson, and David K. Hayes


Adapted by: Daniel G. Fuchs

Adapted and newly structured by Daniel G. Fuchs

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Important Profit Formulas
Revenue Expenses = Profit

Revenue Desired profit = Ideal expense

Profit Revenue = Profit percentage

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Two Ways to Increase Revenue
Increase the number of guests
Increase the amount you charge guests

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Foodservice Expense
Categories
Food costs
Beverage costs
Labor costs
Other expenses

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Profit and Loss Statement
Simplified statement that details revenue,
expenses, and profit for a given period of
time

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Why Budget?
To get where you want to go, you need a
plan!
Budgets have to be realistic and should be
based on historical data of previous years.
One has to compare actual revenue against
budgeted revenue.

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Important Budgeting Terms
Performance to budget: Percentage of
budget actually used
28-day approach: Budgeting method that
divides a year into 13 equal periods of
28 days each
Significant variation: Larger than normal
difference between actual performance
and budgeted performance

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What Is a Sales History?
Systematic recording of all sales achieved
during a predetermined time period
Accurate record of what an operation has
sold

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Two Major Types of Averages
Used When Computing Sales
Histories
Fixed average: Average determined for a
specific time period
Rolling average: Average amount of
sales or volume over a changing time
period

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Check average is another way
of saying average sales per
guest.
Example:
Mondays total sales Total number of
guests served on Monday = Mondays check
average

$4,500 300 guests = $15 check average


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Sales Variance
Changes from previously experienced
sales levels
Sales this time period Sales previous
time period = Sales variance
Sales variances often compare either a
previous time period or the same time
period from a previous year.

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Percentage Variance
(Sales this year Sales last year) Sales
last year = Percentage variance

Percentage variance allows managers of


different-sized operations to meaningfully
compare their performance.

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Sales History Information to
Predict Future Revenue
Increases = (1 + Percentage increase
estimate)
Decreases = (1 Percentage decrease
estimate)
For an increasing revenue forecast, take
Sales prior time period 1 + Percentage
estimate
For a decreasing revenue forecast, take Sales
prior time period 1 Percentage estimate

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Popularity Index
Percentage of total guests choosing a given menu
item from a list of alternatives
Helps managers make good decisions about the
quantity of each item that should be produced
Formulas:
Popularity index = Total number of a specific
menu item sold Total number of all menu items
sold
Predicted number of an item to be sold =
Popularity index Number of guests expected
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Standardized Recipes
Typically included on standardized recipes:
Item name
Total yield (number of servings)
Portion size
Ingredient list
Preparation/method used
Cooking time and temperature
Special instructions (if applicable)
Recipe cost (optional)
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Changing Standardized
Recipes: Two Approaches
1.Factor method (quick to do, but less
accurate)
Conversion factor = Desired yield
Current yield
Original ingredient amount Conversion
factor = New ingredient amount

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Changing Standardized
Recipes: Two Approaches
2. Percentage Method (longer, but more accurate)
Determine total weight of original recipe
Divide each ingredients weight in original recipe by
total weight of original recipe to get the percentage
that each ingredient weighs in original recipe
Multiply the desired number of servings by the
individual serving size of original recipe, which
yields total weight of the new recipe
Finally, multiply this new total weight by each
ingredients percentage to get the weight of each
ingredient for the new recipe
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Factors Used to Determine
Inventory Levels
Storage capacity
Item perish ability
Vendor delivery schedule
Potential savings from increased purchase
size
Operating calendar
Relative importance of stock outages
Value of inventory dollars to the operator
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Defining Quality by Using
Specs
Pricing unit (e.g., $ per case, $ per dozen, $ per
100 count)
Standard or grade of food items (e.g., Grade A or
Grade AA eggs)
Weight range/size (e.g., 56 pound roasting chickens)
Special processing and/or packaging desired
Container size
Intended use (e.g., quality of berries for sauce <
quality for berries for tart)
Product yield (amount of product left after cooking,
trimming, cleaning, etc.)
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Checking Product Received
Receiving clerks should be trained to verify:
Weight
Quantity
Quality
Price

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Copyright: professor 228
Determining Cost of Food Sold

Beginning inventory
+ Purchases
Goods available for sale
Ending inventory
Cost of food consumed
Employee meals
Cost of food sold

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Types of Operations That Serve
Alcoholic Beverages
Beverage only
Beverage and food
Beverage and entertainment/activity
Discotheques
Sports and other theme bars

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Classifications of Alcoholic
Beverages
Beer: Fermented beverage made from
grain and flavored with hops
Wine: Fermented beverage made from
grapes, fruit, or berries
Spirits: Fermented beverage distilled to
increase the alcohol content of the product

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Beverage Cost Percentage
Formula

Cost of beverages sold Beverage sales =


Beverage cost percentage

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To develop a wine list:
1. Provide alternatives for the guests who
want the best, as well as for those who
prefer to spend less.
2. Make available wines that either
complement the food or are popular with
guests.
3. Aim to make the purchase of wine by the
bottle a pleasant, non-threatening
experience by training wait staff to be
knowledgeable but not pretentious.
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Protecting Your Wine Inventory
Wine inventory is a major investment.
Proper storage is the key to protecting it.

All that wine needs is a little TLC


Temperature
Light
Cork condition

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Transfers are the key to keeping
accurate food and beverage
costs.
Transfers to the bar include such items as juices,
lemons and limes, and drink garnishes.

Transfers from bar include such items as wine,


beer, or spirits needed for dishes in the kitchen.

Cost of beverage sold = Beginning inventory +


Purchases Ending inventory Transfers from
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+ TransfersCopyright:
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2005, Educational Institute
Liquor can be measured by:
Weight (i.e., specific gravity)
Count (between 1/10 and 10/10a full
bottle)
Measure (set a ruler next to the bottle)
Ounces or milliliters

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Copyright: professor 236
The Production Process
1. Maintain sales histories
2. Forecast future sales levels
3. Purchase and store needed food and
beverage supplies
4. Plan daily production schedules
5. Issue needed products to production areas
6. Manage the food and beverage production
process
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Copyright: professor 237
How much should the kitchen
make today?
Todays production = Todays sales
forecast Prior days carryover + 510%
overage.
Daily preparation schedules also called Prep
lists developed by the Chef each day help
to control the quantity of food prepared
and even work load distribution.

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Copyright: professor 238
ABC Inventory Control
Category A: Tight control; high value items
that make up 70% to 80% of total inventory
value
Category B: Routine control and record
keeping; items that make up 10% to 15% of
total inventory value
Category C: Only very simple inventory
control; items that make up 5% to 10% of
total inventory value
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Copyright: professor 239
To better manage kitchen costs:
Control waste
Reduce overcooking
Control portion size
Use carryovers creatively
Use convenience foods effectively

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Copyright: professor 240
How Bar-Related Theft Occurs
Order is filled but not rung up
Employee brings in extra product and pockets
the sales
Bartender over pours or under pours
Employee gives incorrect change
Bartender dilutes product
Product is stolen
Bartender substitutes less expensive well liquor
for call brand and pockets the difference in price

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Copyright: professor 241
How to Reduce Overall Product
Cost Percentage
1. Decrease portion size relative to price
2. Vary recipe composition
3. Adjust product quality
4. Achieve a more favorable sales mix
5. Ensure that all product purchased is sold
6. Increase prices relative to portion size
7. Product substitution

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Copyright: professor 242
Three Types of Menus
Standard
PROS: Simple ordering process; decent
number of menu choices for guests; easy
to gather guest preference data
CONS: Poor carryover utilization; lacks
flexibility if prices of particular goods
suddenly increase

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Copyright: professor 243
Three Types of Menus
Daily
PROS: Guest often appreciate freshness of
menu; quick response to price changes in raw
ingredients; good carryover utilization possible
CONS: Hard to gather guest preference data;
difficult to determine production schedules
and purchasing requirements; often
disappoints customers who come back for the
same thing

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Copyright: professor 244
Three Types of Menus
Cycle
PROS: Relatively simple ordering process;
can take advantage of low-priced goods;
decent carryover utilization; offers more
menu options than standard, yet keeps
favorites to satisfy regular guests
CONS: Not many, since it incorporates the
best aspects of both the standard and
daily menus
03/21/17
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Copyright: professor 245
Factors Affecting Menu Price
Local competition
Service levels
Guest type
Product quality
Portion size
Ambience
Meal period
Location
Sales mix
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Copyright: professor 246
Two Ways to Assign Menu
Prices
Product Cost Percentage Method
Cost of a specific food item sold Food
cost percentage of that item = Food sales
(selling price) of that item
Product Contribution Margin Method
Selling price Product cost = Contribution
margin

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Copyright: professor 247
Special Pricing That Can
Influence Guests Purchasing
Decisions
Coupons
Value pricing
Bundling
Salad bars and buffets
Bottled wine
Beverages at receptions
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Copyright: professor 248
Pricing salad bars and buffets is

as easy as ABC!
A: High-cost items = no more than 20% of
available items
B: Mid-cost items = no more than 30% of
available items
C: Low-cost menu items = at least 50% of
available items

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Copyright: professor 249
Labor expenses include:
Social Security taxes Employee training
Unemployment taxes expense
Workers Employee
transportation
compensation
Employee uniforms,
Group life insurance
housing, and other
Health insurance benefits
Pension/retirement Vacation/sick leave
plan payments Employee incentives
Employee meals and bonuses
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Copyright: professor 250
Ten Factors That Affect Worker
Productivity:

1. Employee 6. Morale
selection 7. Menu
2. Training 8. Convenience vs.
3. Supervision scratch
4. Scheduling preparation
5. Breaks 9. Equipment
10.Service level
desired
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Copyright: professor 251
Employee Interviews
Before posing a question to an interviewee,
ask yourself the following:
1. Does this question help me judge this
persons ability to perform the job?
2. Will this question screen out minorities or
females in any way?
3. Is there an alternative, nondiscriminatory
way that I can assess this persons
qualifications?
03/21/17
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Copyright: professor 252
Employee Turnover Rate

In general, the higher your employees


morale, the lower your turnover rate.

Employee turnover rate = # of employees


separated # of employees in workforce

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Copyright: professor 253
Important Labor Cost Formulas
Labor cost percentage = Cost of labor Total
sales
Sales per labor hour = Total sales Labor
hours used
Labor dollars per guest served = Cost of labor
Guests served
Guests served per labor dollar = Guests served
Cost of labor
Guests served per labor hour = Guest served
Labor hours used
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Copyright: professor 254
Managing Payroll Costs
1. Determine productivity standards
2. Forecast sales volume
3. Schedule employees using productivity
standards and forecasted sales volume
4. Analyze results

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Copyright: professor 255
How many employees do I
need today?
The key is to think of your guests in blocks.
Look at past sales history and schedules to
determine the number of guests each worker can
serve efficientlythis is your guest block.
For each additional block of guests forecasted,
add another employee.
Note: If your guest block is 20, and the forecast
calls for 58 guests, you are still two guests short
of another block. Therefore, only two workers
should be scheduled to keep labor costs down.
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Copyright: professor 256
Labor Budgeting
To create a labor budget, most
managers use one of two methods:
Cost of labor budget = Forecasted total
sales Labor cost percentage standard
Labor hours budget = Forecasted
number of guests served Guests served
per labor hour standard

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Copyright: professor 257
Other Expenses
Costs Related to Food Costs Related to Labor
and Beverage Employee benefits
Operations
Direct operating Costs Related to Facility
expenses Management
Music and entertainment Repairs and maintenance
Marketing
Utility services Occupancy Costs
General and Rent
administrative expenses Interest
Depreciation

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Copyright: professor 258
Types of Expenses
Fixed expense
Remains constant despite increases or
decreases in sale volume
Variable expense
Usually increases as sales volume
increases and decreases as sales volume
decreases
Mixed expense
Has properties of both fixed and variable
expense
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Copyright: professor 259
Managers also consider expenses
based on how much they can
control them.
Controllable expense
Decisions made by the foodservice
manager can have an effect of either
increasing or reducing the expense
No controllable expense
Expense that the foodservice manager
can neither increase nor decrease

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Copyright: professor 260
Expense Behavior as Sales
Volume Increases

As Percentage of Sales Total $


Fixed expense Decreases Remains the same
Variable expenseRemains the same Increases
Mixed expense Decreases Increases

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Copyright: professor 261
How to Control Costs Related
to Labor
Eliminate wasteful labor-related expense
Implement cost-reducing hiring practices
Provide excellent training
Keep employees happy
Maintain a safe workplace
Create good benefits

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Copyright: professor 262
Three Sections of the
Uniform System of
Accounts for Restaurants & F & B
Operations

Gross profit section


Operating expenses section
Non-operating expenses section

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Copyright: professor 263
All percentages on an income
statement have Total Sales as
their denominator except:

Food costs (divide by food sales)


Beverage costs (divide by beverage sales)
Food gross profit (divide by food sales)
Beverage gross profit (divide by beverage
sales)
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Copyright: professor 264
To compute overall sales
increases or decreases:

1. Determine sales for the accounting period


2. Calculate this periods sales minus last
periods sales
3. Divide the difference in #2 above by last
periods sales to determine percentage
variance
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Copyright: professor 265
Inventory Turnover
High turnover rate should accompany high
sales volume.
Average inventory value = (Beginning inventory
value + Ending inventory value) 2
Food inventory turnover = Cost of food consumed
Average inventory value

Q: What if inventory turnover is rising sharply but


sales volume isnt?
A: An increase in waste, spoilage, or theft of goods is
likely occurring.
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Copyright: professor 266
Labor Cost Percentage
Salaries and wages expense
percentage = Salaries and wages
expense Total sales
Adjusted labor cost percentage =
Previous periods labor costs (1 +/
percentage increase/decrease) Total
sales

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Copyright: professor 267
Formulas for Analyzing Profits
Profit margin = Net income Total sales
Profit variance percentage = (Net
income this period Net income last
period) Net income last period

03/21/17
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Copyright: professor 268
Major Types of Menu Analysis
Food Cost Percentage Goal Value Analysis
Method
Variables considered:
Variables considered: food
cost percentage and
contribution margin
popularity percentage, popularity,
Goal: minimize overall food selling price, variable cost
cost percentage percentage, food cost
percentage
Contribution Margin Method Goal: achieve
Variables considered: contribution
margin and popularity predetermined profit
Goal: maximize contribution percentage goals
margin

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Copyright: professor 269
Possible Food Cost Percentage
Matrix Analysis Results
1. High food cost percentage, low popularity
Problem: Marginal menu item because of both
high product cost and lack of sales
2. High food cost percentage, high popularity
Problem: Marginal menu item because of high
product cost
3. Low food cost percentage, low popularity
Problem: Marginal menu item because of lack of
sales
4. Low food cost percentage, high popularity
Problem: None
03/21/17
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Copyright: professor 270
Formulas for Contribution
Margin Method
Contribution margin per menu item =
Selling price Product cost
Total contribution margin = Total sales
Total product costs
Average contribution margin per item =
Total contribution margin Number of
items sold

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Copyright: professor 271
For any budget, you need:
Prior period operating resultswithout them,
budgeting is meaningless
Assumptions of next periods operations
educated guesses that come from prior
experience and communication with others in the
business
Operating goalsfor meals served, revenue,
food and labor costs, other expenses, and profit
Monitoring policiesthat regularly look at
revenue, expense, and profit
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Copyright: professor 272
External Threats to
Revenue Security

Walking or skipping the bill


Fraudulent payment
Quick-change artist
Unjustified complaints

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Copyright: professor 273
Four Key Components to
Income Security Systems

1. Verification of product issues


2. Verification of guest charges
3. Verification of sales receipts
4. Verification of sales deposits

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Copyright: professor 274
Four Key Principles to
Implementing a Revenue
Security System
1. No product shall be issued from the kitchen or
bar unless a permanent record of the issue
is made
2. Product issues must equal guest charges
3. Both the cashier and a supervisor must verify
sales receipts
4. Management must personally verify all
bank deposits

03/21/17
2005, Educational Institute
Copyright: professor 275
Basic Payment Arrangements
in a Typical Foodservice
Operation
1. Guest pays cashier
2. Guest pays service personnel, who
pay cashier
3. Guest pays service personnel, who have
already paid cashier
4. Guest is direct billed

03/21/17
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Copyright: professor 276
How Does Technology Enhance
Your Cost Control Systems?
Provides new information
Provides more accurate information
collection
Offers more convenient information
collection
Improves communication of information
Improves analysis of information

03/21/17
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Copyright: professor 277
The Three Main Parts
of Technology

Software: the brains of technology


Hardware: the body of technology
Communication Devices: the voice of
technology

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Copyright: professor 278
Types of Software
Hospitality software is specifically
designed to provide cost-related information
to foodservice operators.

Generic software must be customized to


meet the needs of a foodservice operation,
yet it is a cost-effective solution for
managers who are comfortable with
technology.
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Copyright: professor 279
Hardware Components
and Features
Microprocessor
RAM memory
Hard drive
Multimedia
Modem/Internet connection
Monitor
Printer
Hand-held devices

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Copyright: professor 280
Communication Devices
Cellular telephones
Fax machines
E-mail
Pagers
Internet

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Copyright: professor 281
Factors to Consider
When Purchasing
Technology Improvements
The technologys ability to:
Enhance guest satisfaction
Increase revenue
Reduce costs through improved decision making
Increase employee or management productivity
Improve communications
Provide a competitive advantage
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Copyright: professor 282
Lesson 12
Food Safety &
The Importance of Temperature
Control
Winston Industries
Research & Fundamental Series
presents
Continuing Enrichment Series 2
"Food Safety in School Foodservice
Jill Conklin, School Industry Specialist &
Daniel G. Fuchs

2005, Educational Institute


Learning Objectives
After studying this chapter students
should be able to know how to
effectively manage a kitchen ensuring
food safety from a personal, food
preparation and equipment point of
view.

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Copyright: professor 284
Understanding the importance of
Food Safety

What is food safety?


Protection of our food supply
Prevention from the ground to the plate

Why should we pay attention?


Health & Well-being
Effects on children, elderly, suppressed immune systems
Cost & financial loss
Personal & professional reputation
Morale & core ethics of operation

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Copyright: professor 285
Understanding Foodborne Illness
&
its Contributors
What is Foodborne Illness?
Factors
Host air, soil, water, food
Favorable conditions
Cause
Bacteria, toxins, parasites,viruses, chemical
contaminants
Potentially hazardous foods - PH
Cross Contamination
Personal Hygiene
Abuse of Time & Temperature
03/21/17
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Copyright: professor 286
Understanding Foodborne Illness
is Preventable!
How to address Food Safety

Education
Develop a Team
Challenges
Foodservice Staff
Solutions
School Personnel
Students Resources
Community Federal agencies
Industry State & Local Agencies
Education Centers
Develop a Plan
HACCP

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Copyright: professor 287
Steps for Success - Team
Finding solutions for your school foodservice program

A Team Approach
Roles & Responsibility
Industry
Taking an active role
Understanding & addressing the School Market
Research & Design of Products
Building relationships and resources
School foodservice staff
Understanding trends & technology today
Matching the needs of your operation with your food and
equipment manufacturers
Becoming educated and becoming the educator
Implementation

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Copyright: professor 288
Steps for Success - HACCP
Develop a Plan
HACCP - Hazard Analysis Critical Control Points
Documentation of a foods flow & all Critical Areas &
Points for contamination
Includes a food flow through: receiving, storage,
preparation, cooking, holding, cooling & re-heating
system of checks & balances

03/21/17
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Copyright: professor 289
Steps for Success - HACCP
Seven Steps
Assess hazards
contamination,
improper : cooking, holding, cooling, re-heating
personal hygiene & sanitation
Identify Critical Control Points & Areas
Establish regulatory procedures
Monitor procedures & assign responsibility
Take immediate Action - Address & Correct the problem
Record - develop a policy & procedure manual, written logs, flow
charts
Verification - Check the system is working. Define staff roles &
responsibilities. Listen, Gather feedback & organize

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Copyright: professor 290
Steps for Success -
Education
Getting the Facts

Top 3 Hazards of Foodborne iIlness:


Abuse of time & temperature
Poor Hygiene
Cross Contamination

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Copyright: professor 291
Steps for Success - Education
Personal Hygiene
Uniform maintenance
Cleanliness & Safety
General practice
Bathe daily, clean hair & nails
Keep wounds covered
Wash hands regularly -Bacteria thrives on the hands, skin,
eyes, noes, mouth
Wash hands thoroughly for 20 seconds under warm water with soap
Use Gloves when handling ready to eat foods and when a
new task is performed
Gloves are not a supplement for hand washing. They must be
discarded and hands washed to prevent cross contamination!

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Copyright: professor 292
Steps for Success - Education
Cross Contamination
Clean
handling, preparing, serving foods
handling, preparing raw meat, poultry, seafood & fish
using the lavatory, cleaning & trash removal
Separate
use different cutting boards & utensils to prepare raw ,
cooked & potentially hazardous foods
Cook - Understand the current Lethality logs for potentially
hazardous foods, temperature danger zone, appropriate
cooling & re-heating times,check temperatures regularly
Chill - Defrost & refrigerate foods appropriately. Dont
clutter! Refrigerators & Freezers need air to circulate.

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Copyright: professor 293
Steps for Success - Education
Time & Temperature
Relationship
Understanding Appendix A & Lethality Logs for Beef (cooked & cured),
Poultry, Pork, Seafood & Fish)
Relative hold time or minimum processing time for protein after a
minimum temperature is reached
lethality's are achieved once internal temperatures reach and exceed
158 degrees F
a relative humidity of 90% or above must be reached for at least 25
percent of the total cooking time or as prescribed by the lethality log
Bacteria conditioned to multiply at exceeding rates when foods are
cook/ held between 50- 130 degrees F for times greater than six hours

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Copyright: professor 294
Steps for Success - Education
Time & Temperature
Temperature Danger Zone (TDZ)
Microbial growth increases rapidly between the TDZ
41 degrees F - 135 degrees F
Harmful organisms grow slowly below 41 degrees F and
can be destroyed above 135 degrees F when applied with
a time & temperature ratio
Foods should never be left in the TDZ longer than a
cumulative of four hours. If so, the food should be
discarded. The time food can be in the TDZ includes all
Critical Areas: receiving, storage, cooking, holding, re-
heating, and cooling

03/21/17
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Copyright: professor 295
Steps for Success - Education
Time & Temperature
When cooling foods: temperature should reach 135-
70 degrees F or below within 2 hours and 70-41
degrees F within 4 additional hours. If a food product
does not reach 70 degrees F within 2 hours the food
must be immediately reheated to 165 degrees F for
15 seconds. If the food does not reach this
time/temperature it should be discarded. If the food
returns to the TDZ again, it should be discarded.
Keep record of your temperature control

03/21/17
2005, Educational Institute
Copyright: professor 296
Steps for Success - Education

Tools for Precise Time &Temperature Control

Thermometers
Accurate control of temperature
Monitor by keeping time & temperature logs
Foodservice equipment
Accurate control of temperature & time through
technology

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Copyright: professor 297
Steps for Success - Education
Thermometers
Thermy
Use only approved and appropriate
thermometers
Its Safe to Bite When the Temperature is
Right!
Color - poor indicator
Rely on the actual thermometer reading to ensure
food has reached a safe internal temperature for
serving

03/21/17
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Copyright: professor 298
Steps for Success - Education
Thermometers
Why?
Best, most reliable way to ensure safety and
to determine doneness & just-cooked
quality are determined
Thermometers are used to verify
temperatures and harmful microorganisms
have been destroyed
Safe Temperatures means Safe Foods, Safe
Food means Healthy Bodies & Happy Kids!

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Copyright: professor 299
Steps for Success - Education
Thermometers
Thermocouple (2-5 second reading)
probe at 1/4 inch
fastest reading
measures temperatures in thick & thin foods
can be calibrated
digital display
Thermistor ( 10 sec reading)
probe at 1/2 inch
offers a quick reading
measures temperatures in thick & thin foods
some can be calibrated
digital display

03/21/17
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Copyright: professor 300
Steps for Success - Education
Thermometers
Bimetal Instant Read (15-20 seconds)
probe 2-21/2 inch
temperature taken by average on the stem
difficult to accurately measure thin foods
calibrated
Liquid filled (1-2 minutes)
dial read, some with magnifying read
probe 2 inches or more
can be left on food product during cook/hold
does not measure thin foods
heat conduction causes inaccuracy, it is recommended multiple readings
are taken in the same product but in different areas

03/21/17
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Copyright: professor 301
Steps for Success - Education
Thermometers

Oven Cord Thermometer (5-10 sec reading)


probe at 1/2 inch
can be used in & out of oven
designed for use in food product during cook/hold cycle
can not be calibrated
digital display (often needs battery pack)

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Copyright: professor 302
Steps for Success - Education
Thermometers
Use & Care
Always check the manufacturers instructions prior to
use
Wash with hot soapy water and sanitize as you would
any other kitchen utensil to minimize cross
contamination
Remember safety - keep all sharp objects pointed
downward and covered

03/21/17
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Copyright: professor 303
Steps for Success - Education
Thermometers
Where to place Thermometer
Temperatures for all meat products should be placed midway
into the body of the product.
Keep away from bone, gristle & fat (this can cause inaccurate
readings)
Thin Foods: insert the probe sideways about 2-3 inches towards
the center of the product. (Thermocouple & Thermistor produce
most accurate reading)
Poultry should always be checked by inserting the probe into the
thickest section or thigh, including whole or fabricated parts.
Casseroles should always be checked in the very center or
thickest section of the product

03/21/17
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Copyright: professor 304
Steps for Success - Education
Thermometers
Calibration
Ice Water Method
Fill a glass or beaker with crushed ice. Add tap water to the top of the glass
and then stir the contents well.
Insert the thermometer into the center of the glass without touching bottom or
sides of the glass
Insert approximately 2 1/2 inches into the ice water bath
Wait at least 30 seconds for a reading
Turn the calibration nut so the pointer or display reads 32 degrees F

03/21/17
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Copyright: professor 305
Steps for Success - Education
Thermometers
Boiling Water Method
Bring a pot of water to a full boil
Insert the thermometer into the center of the pot
without touching bottom or sides of the pot
Insert approximately 2 1/2 inches into the boiling
water
Wait at least 30 seconds for a reading
Turn the calibration nut so the pointer or display
reads 212 degrees F
Remember water boils at a lower temperature in high
altitudes, check with your local agency for
instructions
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Copyright: professor 306
Steps for Success - Education
Foodservice Equipment
Critical Control Products for Critical Control Points
Critical Control Points: cooking, holding, re-heating & serving
are areas extremely susceptible to Time & Temperature Abuse
Equipment Products that are manufactured for cooking,
holding, re-therming and serving purposes should be
engineered to control the time & temperature
Equipment should precisely control the temperature of all
foods, especially potentially hazardous foods
Proteins are potentially hazardous foods. They are also the
cost centers of many foodservice operations.
Equipment should be designed to assist the operator in
managing proteins during critical points. This term can be
called Safe Protein Management. Such management in design
of equipment will address food safety needs
03/21/17
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Copyright: professor 307
Steps for Success - Education
Foodservice Equipment Procurement

What to consider
Type of heat system
Efficiency of heat transfer
Efficiency relation to Time & Temperature
Precise control of Internal Temperature of food product
Precise control of food product texture
Recording device & measurement for HACCP control
Equipment designed to meet all regulatory requirements
by the local or international authorities
Meets the minimum requirements for holding guidelines
by FDA
03/21/17
2005, Educational Institute
Copyright: professor 308
Steps for Success - Education
Understanding Foodservice Equipment
Design
Dual Heat System - Vapor (or latent) heat & Air heat
Equipment is insulated with Stainless steel body
Equipment designed with a water evaporator. This evaporator is heated
to control the foods rate of evaporation & internal temperature. See
Vapor Heat Transfer
Equipment also has air heaters controlled independently from the
evaporator. Theses heaters can be controlled to elevate the air
temperature above the food temperature.
Equipment utilizes microprocessor-driven controls, allowing for
independent control of food temperature and food texture.
Dual heat system needs no calibration, has quick cabinet response &
recovery time.
Equipment allows the operator to input desired end internal temperature,
desired03/21/17
texture, and cook time or the
Copyright: use of pre-programmed software.
professor 309
2005, Educational Institute
Steps for Success - Education
Understanding Foodservice Equipment
Design
Equipment design & technology offers efficient form of heat
transfer, precision in temperature, RH, food quality and taste
Nutritional content is maintained
Aesthetic quality is maintained for long holding periods
Food texture set with a minimum differential above the food
temperature allows for long holding of moist food product
Food texture set with a maximum differential above the food
temperature allows for long holding of crisp products
Equipment Products often cost more initially but save energy
costs, maintenance costs, labor costs & food costs

03/21/17
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Copyright: professor 310
Steps for Success - Education
Understanding Foodservice Equipment
Design
Vapor Heat Transfer
All food is comprised of water, therefore may be described as a
water body
When heat is applied to food it behaves the same as heat applied
to water
Water has a vapor pressure. When two water or wet bodies are
enclosed in a chamber there properties will become same. This
occurs through evaporative cooling.
In a dual heat system, water vapor condenses onto a food product.
The food products internal temperature will rise and become the
same (with a differential 1-2 degrees F) as the evaporator. The
operator precisely sets the evaporator temperature in turn setting
the internal temperature of the food product.
This type of dual heat system is a patented technology called
CVap - an acronym for Controlled Vapor.
03/21/17
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Copyright: professor 311
Steps for Success - Education
Understanding Foodservice Equipment
Design

Controls
Manufacturers of equipment are now designing controls to monitor &
record safe protein management, often measured by a probe inserted
into a protein.
Systems are set up for manual retrieval of data or through a PC
software systems where data is stored and accessed internally or
externally from the operation
Equipment Products should be used in conjunction with
Thermometers to ensure the safest food supply

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Copyright: professor 312
Steps for Success - Education
Choosing the Right Equipment

Benefits
Produce Healthy Safe Food
Maintain Nutritional Value
Maintain Food at a Just-Cooked Quality
Increase customer appreciation & participation
Allow flexibility in menu design
Increase total food yield & improve food costs
Increase job efficiency & improve labor costs
Increase energy efficiency & improve energy consumption

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Copyright: professor 313
Steps for Success
Resources
US Department of Agriculture (USDA) & Food Safety
Inspection Services (FSIS)
www.usda.gov
Centers for Disease Control & Prevention
www.foodsafeschools.org
www.fightbac.org
National Foodservice Management Institute
www.nfsmi.org
Food & Nutrition Services & Team Nutrition
www.fns.usda.gov
School Nutrition Association
www.schoolnutrition.org
Institute of Food Technologists
03/21/17
2005, Educational Institute
Copyright:
www.ift.orgprofessor 314
Steps for Success
Attitude
Stay Positive
Encourage a Team Approach
Set Realistic Goals & Objectives
Utilize your resources
Utilize Industry for support

03/21/17
2005, Educational Institute
Copyright: professor 315