10.1.

0 CATERING AND ACCOMMODATION CONTROL

I 10.1.1 Introduction This module unit is intended to equip the trainee with knowledge, skills and

attitudes conducive to effective control of operations within the hospitality industry. 10.1.2 General

Objectives By the end of this module unit, the trainee should be able to: a) appreciate the importance of

position and sales control b) understand the process of purchasing, receiving, storing and issuing c)

acquire knowledge in use, care and maintenance of materials and equipment.

10.1.01 INTRODUCTION TO COST CONTROL

10.1.01T Specific Objectives By the end of this sub-module unit, the trainee should be able to: a) define

catering and accommodation cost control b) explain the importance of catering and accommodation

cost control c) describe the process of cost control d) explain the role of the control office e) describe

the cost control cycle Unit Tasks Unit Task 1: Definining catering and accommodation control Catering

and accommodation control is the guidance and regulation of the costs and revenue of operating the

catering and accommodation activities in hotels, restaurants, hospitals, schools, employee restaurants

and other establishments. Unit Task 2 Explaining the importance of catering and accommodation control

 Objectives - Analysis of income and expenditure - Pricing and Quotation - Prevention of waste -

Prevention of fraud - Data for Management report  Problems in Catering Cost control - Unpredictability

of volume of sales - Perishability of supplies - Daily variation in production - Short cycle of operations -

High degree of departmentalization - Multiplicity of low value transactions  Unit Task 3Describing the

process of control  Phase 1-Basic Policy Decisions - Financial Policy - Marketing and Catering Policy 

Phase 2-Operational control - Buying - Receiving - Storing and Issuing - Preparing - Selling  Phase 3 –

Control after the Event - Catering reporting 349 - Accommodation reporting - Assessment of results -

Corrective action where appropriate Unit Task 4Explaining the role of the control office  Formulation of

Budgets  Formulation of Marketing Policy  Formulation of Catering & Accommodation Policy 

 Taking corrective action where appropriate Unit Task 5 Describing The Control cycle Suggested

questions 1. Explain what you understand by food and beverage control 2. Explain the objectives of food

and beverage control 3. Enumerate the main obstacles to food and beverage control. 4. What are the

three main phases of food and beverage control

10.1.02 EQUIPMENT AND MATERIALS USED IN COST CONTROL

Specific Objectives By the end of this sub-module unit, the trainee should be able to: a) Identify

equipment and materials used in cost control b) Explain the use of equipment and materials Unit task 1

Identifying equipment and materials used in cost control  Calculator  Weighing scales  Measuring jugs

Unit task 2 explaining the use of cost control equipment and material 10.1.03 PURCHASING 10.1.03T

Specific Objectives The control cycle of daily operation 350 By the end of this sub-module unit, the

trainee should be able to: a) define terms b) explain the importance of purchasing function c) state the

duties of the purchasing personnel d) explain standard purchase specification e) discuss methods of

purchasing. Unit Tasks Unit Task 1 Defining terms  Purchasing This is a function concerned with the

search, selection, purchase, receipt, storage and final use of goods in an establishment.  Purchasing

Officer This is the person employed by the establishment to purchase, receive, store and issue

commodities.  Purchasing Research - Market and materials - Cost analysis Unit Task2 Explaining the

Importance of purchasing function Policies - determine what market segment is aimed at. Determines

price to be paid for purchases (re-quality)and prices that items are to sold at. Determines the quality to

be purchased Menu - Determines the choice of items available to customers Volume forecasting

determines the quantity to be purchased Requisition - Indicates the particular requirements of each

outlet Purchasing - Selects suppliers, contracts, quantities to be purchased, specifications for individual

items - Ensures continuity of supply Receiving - Inspects for quantity and quality Storing - Correct
storage for each item - Maintenance of stock records - Security of items - Correct stock levels - Correct

issuing Production - Preparation of items purchased Selling - Provision of satisfactory products at the

correct selling Price/cost Control - The measurement of performance of all outlets involved. - Feedback

of information to management. Unit Task3 Stating the duties of the purchasing personnel Purchasing

Officer 1. Responsibility for the management of the purchasing office, the receiving, storage and cellar

areas 2. the purchasing of all commodities 3. Ensuring continuity of supply of all items to user

departments 4. finding cheaper (for same quality) and more efficient sources of supply 5. Keeping up to

date with all the market being dealt with and evaluating new products 6. Research into products,

markets, price trends etc. 7. Co-coordinating with production department to standardize commodities

and therefore reduce stock levels 351 8. Liaising with production, control, accounts and marketing

departments 9. Reporting to senior management. Unit task4 Explaining standard purchase specification

 Definition A concise description of the quality, size and weight or count factors required for a

particular item  Objectives - To establish a buying standard for a particular commodity for an

establishment - To inform the supplier in writing precisely what the purchaser requires - To establish a

common denominator between the purchasing officer and the approved suppliers for settling the price

of a commodity - To inform the receiving clerks and the store man what to accept - To obtain a standard

product for the production and selling departments - To obtain a standard product so that the

measurement of performance of department can be more accurate. SAMPLE: Standard Purchase

Specification Ref. No. Name of Operation Date (for easy reference) (State name and address) (When

prepared) 1. Product Name………………………………… This must be the exact and specific name as used in

the trade e.g. Red Cabbage 2. Product Use(s) Clearly indicate the product use, e.g. to be used for making

red cabbage salad 3. Product General Description Provide general quality information about the desired

product. For example, Red Cabbage: Heads to be deep red in colour, firm, without spoilage, excessive

dirt or damage. 4. Detailed Description State other quality factors that help to clearly identify the
desired product. Specific factors may include some or all of the following:  Geographical origin – a

particular country or region in the same country  Variety or type- specify where different varieties are

available  Brand name – applicable for processed products with several brands in the market 

Package size e.g. Red cabbage heads of medium size, packed 12 heads per case 5. Product Test

Procedures Specify to the supplier what procedures will be used to test for product quality and quantity

at the time of receiving or when the product is being prepared or used. Thus Red cabbage packed 24

heads per case can be counted, while products delivered under refrigeration can be checked for

temperature using a thermometer. 6. Special Instructions and Requirements Include any additional

information to clearly communicate to the supplier the quality expectations of the product, e.g. labeling,

packaging and delivery requirements like delivery date after placing order. Unit Task5 Discussing

methods of purchasing  The Purchasing Procedure - The initiation of a request to purchase goods by an

authorized member of the staff - Determining of the source of supply from which goods are to be

purchased and the price to be paid - Entering into a contract with the firm/supplier selected - Obtaining

a satisfactory delivery performance from the supplier with regard to time, date and place of delivery 352

- The acceptance of goods ordered and the adjustment of any discrepancies in quality or quantity of

goods delivered - The transfer of commodities to the ordering department or to the stores or cellar. 

Selection of a supplier - Price performance - Quality performance - Delivery performance - Supplier

rating  Methods of purchasing - Cash and carry - Purchasing by contract - Daily quotation sheets (daily

market lists) - Weekly/fortnightly quotation sheets - Purchasing by paid reserve - Total supply - Cost plus

 Documents used in purchasing - Purchase order form - Purchase requisition sheets - Price Quotations/

Price Lists - Purchase Specification

353 SAMPLE OF A PURCHASE ORDER FORM PURCHASE ORDER TO:

operation) Address------------------- Please Supply: Delivery date-------------- No. Description Qty Required

unit Size Unit Price Amount Total Cost Important This purchase order expressly limits acceptance to the

terms and conditions stated above, and any additional terms and conditions affixed hereto or otherwise

referenced. Any additional conditions proposed by seller are objected to and rejected.

------------------------------- Authorized Signature SAMPLE FORMAT OF A QUOTATION From

----------------------- Quote No. ------------------- (Supplier) Address --------------------- Date ------------------------

To: ----------------------------- ----------------------------------- Terms: No. Description Quantity Unit Size Unit

Price 10% Trade Discount Net Unit Price Total Conditions e.g. 1. All prices quoted are valid for 30 days. 2.

Prices are inclusive of 10% VAT 354 SAMPLE: PURCHASE REQUISITION FORM FOOD PURCHASE

REQUISITION Name of F& B Operation ---------------------------------------------------- Serial No. --------------

From: ------------------- To: Purchasing Date ------------- Date Required ----------------- (Kitchen or food stores)

Prepared By ----------------------------------------------------------------- --- ------------------------------ Head of Dept./

Storekeeper Signature PURCHASING OF BEVERAGES The purchasing of beverages is similar in many ways

to the purchasing of food, that is, buying the best possible products for the established standards as laid

down in the catering policy. As beverages can frequently contribute more to profits than food does, it is

essential that adequate attention is given to this area. When operating a wine list of any standard, it is

important to ensure beforehand that suppliers are able to guarantee the caterer continuity of supply for

at least six months, or else the wine list need to be printed too frequently. The major sources of supply

of beverages are: a. Wine shippers: these are firms that buy wine in the country of origin and supervise

the shipment of it to the country in which it will be sold. The Shipper is often a specialist of just one

region, and so is an expert for that region. To the purchasing officer, a Shipper is able to offer a limited

range of high quality products as well as specialist advice. The accepted drawbacks to using Shippers are

that normally they will only deal with the large catering companies or prestigious establishments, the
product range is limited, the minimum order level is too large for the storage facilities available to most

catering establishments, and the frequency of delivery and post-sales service is limited. b. Wholesalers:

these are either independent or subsidiary companies of a large brewery. They will usually sell any

proprietary beverage product that is required, but as a first preference will sell their own label products.

Wholesalers offer a very wide range of products, a good and regular delivery service, a good after sale

service and also offer Col. 1 Col. 2 Col. 3 Col. 4 Col. 5 Col. 6 Col. 7 Col. 8 Col. 9 Col. 10 col. 11 Previous

price paid Product Description Size Unit On hand Qty. required Suggested supplier previous purchase

name name name price price price Qty Date Purchase index& quotes Stores Bin Cards& Price Lists Kg,Lt,

Ml,pc Store Bin card Stores or dept. need Purchasing: Former supplier Name of alternative Name of

alternative Purchase supplier index Purchase supplier index 355 fringe services such as free printing of

wine lists and promotional material for both bars and table service. The accepted disadvantage to this

method is the anonymity of the service, as usually only a sales representative is seen by the caterer as a

lack of specialist knowledge and prices not being as competitive. c. Cash and Carry: these establishments

offer a limited range of wines, spirits, and beers at very keen prices, but do not offer any specialist

advice on the products or any post-sales service. Cash and carry establishments are useful in

emergencies, or for catering units with a limited demand for beverages. d. Suspended Debt: This

method is operated by some wine and spirit companies. The company invoices the caterer for his initial

opening stock, but requests payment only on subsequent invoices, the first being “suspended” until the

account is closed. This method is useful to small catering concerns when opening up in business or new

units, as it frees cash which would otherwise have been tied up in stock. The main disadvantage is that

of being tied to one supplier. e. Cellar Stocks and Suspended Debt Accounts: this method is similar to the

one above. The supplier agrees with the caterer as to what his monthly par stock should be. The supplier

then stocks the cellar free of charge, all opening stock levels being recorded in a cellar ledger. Stock is

then taken at the end of the month, and all items issued from the cellar are charged to the caterer. The
par stock is then made good by the supplier. The main advantage is that the initial cellar stock is not

charged against the caterer, only that part of it that is issued during the month. The main drawback is

that of being tied to one supplier. PURCHASING SPECIFICATION FOR BEVERAGES The purchasing

specifications for beverages are much simpler to understand due to the fact that beverages are sold and

purchased by the brand name label of the product, each having a consistent quality and quantity

standard of content for each selling unit e.g. bottles, barrels. As the specification is brief, it can always be

written in full on a purchase order. However specifications for wines would also include details of

vintage and supplier. It should be noted that as the quality, consistency and quantity are virtually

guaranteed, the price to pay for the product is important as it is one factor that is not constant. It is for

this reason that close attention is given by the purchasers to offers by suppliers of special discounts

Sample Purchase Specification for Beverages Pointer Hotels (UK) ltd Beverage Purchase specification

year: 2008 V i n t a g e Specification Size Magnum Bottle Half Bottl e Champagne: 1 9 7 0 Bollinger, extra

quality, brut √ √ √ 1 9 6 9 Moet & Chandon, Cuvee Dom Perignon √ √ - 356 1 9 6 9 Tattinger, Blanc de

Blancs, brut - √ - --------------- Suggested Questions 1. Explain the importance of the purchasing function

in a catering control system 2. Prepare a job specification for a purchasing officer for a new large luxury

hotel. 3. Explain the objectives of preparing a standard purchase specification. 10.1.04 RECEIVING

10.1.04T Specific Objectives By the end of this sub-module unit, the trainee should be able to: a) define

terms b) explain the aims of receiving goods c) describe the records and documents used in receiving

goods d) outline the procedures of receiving goods e) explain the importance of time tabling deliveries f)

describe the process of tagging Unit Tasks Unit Task 1Defining terms  Receiving. Administrative function

that involves checking of the quality, quantity, and condition of the incoming goods followed by their

proper storage. Point at which the possession (but not necessarily the title) of goods is transferred from

the seller to the buyer  Blind receiving Is a method of receiving whereby the receiving clerk is

compelled to count and weigh all goods coming into the establishment. He uses a purchase order which
lists all the goods purchased but does not show the quantities of such goods.  Returnable containers

They are reusable containers that must be returned to the supplier failure to which the establishment is

surcharged. Unit Task2 Explaining aims of receiving  To ensure that: -The quantity of goods delivered

matches the quantity which has been ordered. -The quality of goods delivered is in accordance with the

specification stated on the purchase form -The prices stated on the delivery note are in accordance with

the prices on the purchase order form -When the quality or quantity (or both) of goods delivered is not

in accordance with the purchase order or an item is omitted from the order a request for credit note is

raised by the receiving clerk. -An accurate record is made in the goods received book recording details of

the delivery Unit Task3 Describing records and documents used in receiving goods -Purchase orders 357

-Delivery note -Goods received books -Credit note -Meat tag Sample format of Delivery Note DELIVERY

NOTE From: ________________________ Serial No. ___________ (Supplier) Address:

______________________ ______________________ Purchase Order No. ___________ To:

________________________ (Name of F&B Operation) Date: _______________ Address:

______________________ ______________________ NO. Product Description Unit Size Qty Unit Price

Date Delivered 358 Remarks: Goods Received By: ______________________ __________________

Name Signature 359 Sample format of Goods Returned Form GOODS RETURNED NOTE (FORM)

(REQUEST-FOR-CREDIT MEMO) ________________________ (Name of F&B Operation) Address:

______________________ Serial No. _______________ ______________________ To:

________________________ Date: _______________ (Supplier) Address: ______________________

______________________ Invoice No. _______________ Invoice Date: _______________ NO. Product

Description Unit Size Qty Unit Price Amount (P) Reason(s) Total Delivery Person:

______________________ __________________ Authorizing Officer: ______________________

__________________ Name Signature 360 Sample format of Delivery Invoice DELIVERY INVOICE From:

________________________ Serial No. _______________ (Supplier) Address:

No. __________ (Name of F&B Operation) Address: ______________________

______________________ Date: _______________ NO. Product Description Unit Size Qty Unit Price

Amount (P) Total 361 A SAMPLE OF A FOOD TAG Item: -------------------- Cut: ---------------------- Total wt.

---------------- Price per kg. ------------ Total value -------------- Dealer ------------------- Date ---------------------

Food control copy No: 11970 --------------------------------------------------------------------

-------------------------------------------------------------------- Item: -------------------------- Cut: ---------------------------

Total: ------------------------- Price per kg. ----------------- Total value ------------------- Dealer -------------------------

Date --------------------------- Food store room copy Return to Food Control on Issues from stores No: 11970

Unit Task 4 Outlining the receiving procedure of goods -A quick check is made against the delivery note

and a copy of the order to check that majority of the goods has been delivered. If there is a major

difference between the delivery note and the order placed, this must be queried immediately. -The

goods, on being unloaded are checked for quantity. -The goods are checked for quality in accordance

with the purchasing specifications wherever possible. Unit Task5 Explaining the importance of time

tabling deliveries - To ensure the delivery staff do not waste time queuing up to make a delivery. - To

ensure that the receiving clerk has a succession of delivery being made instead of several being made at

the same time - To ensure the receiving clerk has more time to do his job thoroughly Unit Task6

Describing the tagging process  Definition - Tagging refers to the process of identifying expensive food

commodities (animal proteins) through labelling  Reasons for tagging - It aids the control of expensive

foods - It requires the receiving clerk to weigh and record each item and to check against the specific

purchase specification weight range - It assists in obtaining a more accurate daily food cost percentage

figure - It assists in controlling the stock level of these items  Procedure of tagging - on receiving the

item they are checked against the purchase specification as to being acceptable or not - If suitable a tag

is made out for each item received with the main information being taken from the invoice or delivery
note. The weight recorded on the tag is obtained by actually weighing each item individually - The tag is

then separated along the perforation with control office copies being sent direct to the control with the

invoice or delivery note and the kitchen copy being attached by string or wire to the food item 362 -

When the item is issued at a later date to the kitchen for use the tag attached to the item is removed

and sent to control with the date of issue filled in. - The control office will usually operate a

reconciliation of meat tags form, recording the tags received from the receiving department and from

the kitchen. Suggested Questions 1. Prepare a purchase order for a three course meal for 25 people. 2.

Explain what is meant by the term blind receiving 3. Given examples of situations that may require the

receiving clerk to reject the delivery or part delivery of goods. 10.1.05 STORING AND ISSUING 10.1.05T

Specific Objectives By the end of this sub-module unit, the trainee should be able to: a) describe types of

stores b) explain stock-taking c) explain stock levels d) explain methods of pricing issues e) describe

details of records and documents used in issuing goods Unit Tasks Unit Task1 Describing types of stores

 Centralized Stores This is whereby materials are kept in one central warehouse and are issued from

one central point only.  Decentralized Stores This is whereby materials are held and issued by sub-

stores in each department or branch  Imprest stores This is whereby the materials are received and

held by the central stores but some of them are issued to some sub-stores on the basis of imprest

system. This system operates in a similar way to a petty cash imprest system. A specific quantity of each

item of material is issued to the store keeper of a specific department at the start of any period. At the

end of his period the storekeeper will inform about the number of items of any material used for

production. Unit Task2 Explaining stock taking o Definition Stock taking means to physically check the

stock item in order to ensure that stock quantities shown on stock records and actual quantities are the

same. o Methods of stocktaking Perpetual Inventory Periodic stocktaking Continuous Stocktaking o

Stock Control This means making sure that the business has the right quantity of goods, in the right

place and at the right time. Stock control has the following objectives: -To ensure the availability of
goods when required. -To account for the goods which have been purchased -To reduce the storage

costs as much as possible. -To minimise the risks of deterioration, waste and theft. -To maintain accurate

records. -To avoid overstocking or under stocking. Unit Task3 Explaining stock levels o Definition This is

the level at which any item of stock is to be held. Stock levels should neither be too high nor too low.

363 o Main determinants of stock levels 1. The maximum and minimum forecast usage figures for the

trading period, which would based on the forecast volume of sales and past histories 2. The re-ordering

time for the item. 3. The economic ordering quantity. 4. Market trends, including changes in delivery,

price and scarcity. 5. The storage space available. 6. The shelf-life of the item. 7. Budget available for

purchasing. o Setting stock levels Some stock levels are set up by an enterprise as a policy matter. These

are as under: 1. Maximum stock level – This is the level beyond which the stock should not be allowed to

rise. It is desirable that the level should be as low as possible but it must be adequate according to the

requirements of the enterprise.(MAXIMUM STOCK LEVEL= MINIMUM STOCK LEVEL + REORDER

QUANTITY + (RE-ORDER QUANTITY + MIN CONSUMPTION x MIN RE-ORDER PERIOD) 2. Minimum stock

level _ this is the level below which stocks should not be allowed to fall. If stock falls below this level

then there is possibility of production stoppages due to lack of material. This level is also called a buffer

stock. (RE-ORDER LEVEL – (NORMAL CONSUMPTION x NORMAL REORDER PERIOD) 3. Re-order level –

This is the point at which a purchase order must be sent to the supplier for the supply of more materials.

This level is higher than minimum stock level but lower than the maximum stock level. (Max

CONSUMPTION x MAX RE-ORDER PERIOD) 4. Re-order quantity – This is the quantity for which a

purchase order is placed. 5. Average stock level – This is the average of maximum and minimum stock

levels. (MAX STOCK LEVEL + MIN STOCK LEVEL/2 ) Unit Task4 Explaining methods of pricing issues 1. First

in first out (FIFO) This method assumes that the goods issued are those which have been longest on

hand and that those remaining in stock represent the latest purchases or production. The stocks whose

cost is to be carried forward were acquired most recently. The materials are normally issued at the cost
price of that consignment which was received first. When this consignment is finished then the cost

price of the next consignment is charged to value the material issues. This procedure is followed

continuously. 2. Last in First out (LIFO) This method assumes that the goods issued on any particular

date are those which were most recently acquired and therefore stocks whose cost is to be carried

forward are those which were acquired earliest. The procedure of this method is exactly reverse of the

FIFO method. Materials are issued at the cost price of that consignment which was received most

recently. 3. Simple Average In this method, a simple average of prices of all consignments in stock is

calculated and this average price is used to value material issues. When the first consignment is

exhausted then the price of that consignment is eliminated and a simple average of the remaining prices

is calculated. 4. Weighted Average This means weighted average price. Under this method, the total

value of goods in stock is divided by the number of unit of stock. The resultant figure is the weighted

average price. 5. Base Stock Under this method, a fixed quantity is carried as base stock. It is assumed

that a fixed minimum stock of the material is always carried at original cost. This minimum stock is also

known as base stock because it is kept for emergencies. The stock is not allowed to fall below this level

6. Replacement Cost 364 This method is also known as Next in First Out (nifo). Under this method,

material issues are valued at replacement cost or market value. It means that materials issued are

valued according to cost incurred to replace those materials. This method ensures the valuation of

material issues at market or current prices. 7. Standard Price This means a pre-determined price. A

standard price is ascertained taking into consideration a number of factors e.g. consumption of

materials and expected changes in the price of the materials. Under this method, all material issues are

valued at a standard price. Unit Task5 Describing records and documentations used in storing goods o

Stores ledger This is a record that shows the quantities and the monetary value of items held in stock.

There are three main columns in this ledger. These are for receipts, issues and stock balance in hand o

Bin cards A bin card is a stiff card which is kept where the relevant stock item is stored. Goods/materials
are stored in drawers, shelves or racks. A separate bin card is used for each kind of goods. The bin card

shows the details of all receipts, issues and stock in hand. The bin card helps to find out the number of

various items in stores on a particular date. o Perpetual Inventory Records Perpetual inventory means

the checking of stock items from one day to another. An inventory control card or record is maintained

in the control office for each item held in stock. All quantities of the item received and issued are

recorded with the appropriate date. The information is obtained from the invoices of suppliers which

have been checked for accuracy against the purchase order, delivery note, goods received sheet and

signed requisitions from the departmental stores. o Transfer Notes This is an internal form of requisition

note which is used when a department requisitions something from another other than the stores or

cellar e.g. the kitchen may make out a transfer note to the dispense bar for items such as white wine

and sherry. The dispense bar may make out a transfer note to the kitchen for oranges and lemons o

Empties Outward Book This is a record used to strictly control containers of commodities e.g. crates,

barrels, bottles e.t.c. a record on such containers is kept and updated once they are returned to the

suppliers ADD FORMULAE Suggested Questions 1. What is meant by storekeeping? 2. Explain the main

features of effective storekeeping 3. Distinguish between centralized and decentralized stores 4. Explain

the advantages and disadvantages of centralized stores 5. The following information was obtained from

the books of Samaki hotel with regard to the consumption of wheat flour Consumption per week:

Minimum 600 units Normal 800 units Maximum 1200 units Re-order period Minimum 2 weeks Normal 3

weeks Maximum 5 weeks Re-order Quantity 5000 units Calculate i) Re-order level ii) Minimum stock

level iii) Maximum stock level 10.1.06 PORTION CONTROL 10.1.06T Specific Objectives By the end of this

sub-module unit, the trainee should be able to: a) define portion control b) explain the importance of

portion control 365 c) explain portion control techniques. Unit Tasks Unit Task1 Defining terms 

Portion control This is the process of controlling the amount of food or beverage served to a customer in

relation to the food or beverage cost and the selling price of an item.  Standard recipe This is a written
formula for producing a food or beverage item of a specified quality or quantity for use in a particular

establishment.  Standard portion size This is the established amount of a food or beverage item to be

served to customer in relation to the food or beverage cost and the selling price of an item.  Standard

yield This is the edible part of a food or beverage product after preparation and cooking. Unit Task2

Explaining the importance of portion control - To maximize profit - To avoid wastage - To prevent

customer dissatisfaction due to under portioning - To aid food costing as once the standard portion size

has been established the gross profit may be calculated for that dish. - Unit Task3 Explaining portion

control techniques - Use of standard recipes in production - Use of portion control equipment e.g. soup

ladles, scoops, glasses etc - Use of pre-portioned commodities e.g. sugar sachets, coffee sachets, butter

pats e.t.c Suggested Questions 1. Discuss the role of each of the following in food and beverage control:

 Standard Yield  Standard recipe  Standard portion size 2. Explain the importance of portion control

to a commercial catering establishment 10.1.07 COSTING AND PRICING 10.1.07T Specific Objectives By

the end of this sub-module unit, the trainee should be able to: a) explain elements of costs b) discuss

methods of pricing products and services Unit Tasks Unit Task1 Explaining the elements of costs 

Material cost - It consist of cost of food, beverages and sundry sales such as cigarettes and tobacco.

Food cost consists of the cost of food consumed less the cost of staff meals. (Material Cost = Opening

Stock + Purchases – Closing Stock – Staff Meals)  Labour Cost – It consist of all the remunerations of the

employees both in the form of cash and in kind, e.g. wages, salaries, bonuses, commissions, staff meals,

staff accommodation  Overhead Cost – These are all other costs apart from material and labour costs

e.g. rent, rates, depreciation, insurance, repair, stationery etc.  Total Costs – this is the total of material,

labour and overhead costs. 366  Gross profit – is the excess of sales over the cost of materials G.P. =

Sales – Material Cost  Net Margin – This is the excess of sales over the cost of materials and labour

N.M. = Sales – (Material + Labour Costs)  Net Profit – This is the excess of sales over the total costs N.P.

= Sales – Total Costs Unit Task2 Discussing methods of pricing products and services  Methods of
pricing - Pricing based on cost - Pricing based on the market  Factors to consider when pricing -The

nature of the demand for the product/service -The level of the demand for the product/service -The

level of the competition for the product/service  Pricing objectives -Maximize profit on the short and

long run. -To increase sales volume -To increase market share -To obtain the targeted rate of return on

investment -Stabilize the market prices. -To maintain market leadership  The pricing problems - The

basic price level of the establishment and the overall percentage gross profit on products and services. -

The overall gross profit margin for each revenue producing department. - The gross profit differentials

within departments, menus and wine lists. - Other related matters such as cover charges, minimum

charges, service charges e.t.c Suggested Questions 1. Explain what you understand by : -Material cost -

Labour cost -Overhead cost -Gross profit -Net margin -Net profit 2. The following information was

obtained from the books of a restaurant in respect of June 2009. Sh Cts Sales 26 000 00 Opening stock_1

JUNE 09 2500 00 Closing stock_30 JUNE 09 3200 00 Purchases 12300 00 Wages and salaries 5600 00

National insurance 300 00 Gas and electricity 800 00 Repairs and renewals 1000 00 Rent and rates 1800

00 367 Insurance 400 00 Postage and telephone 200 00 Printing and stationery 300 00 Depreciation

2000 00 You are required: -To calculate the elements of cost and to express each as a percentage of

sales, assuming Ksh.800 of the food consumed has been used for staff meals. -To calculate the gross

profit, net margin profit and net profit. -To calculate the average spending power per customer,

assuming that 5900 customers were served in June 1979 10.1.08 CATERING COST CONTROL 10.1.08T

Specific Objectives By the end of this sub-module unit, the trainee should be able to: a) explain the

importance of control in food and beverage production b) discuss control measures during preparation,

production and presentation Unit Tasks Unit task 1Explaining the importance of cost control in food and

beverage production The principal purpose of food and beverage planning and control systems is • To

avoid excessive costs by reducing waste and other forms of loss to a minimum, without sacrificing the

quality or quantity of the food which goes to the customer An effective control procedure will serve
other purposes as well: • aid in developing popular menus • aid in improving the quality of the product

• aid in pricing for profit Unit task2 Discussing control measures during preparation, production and

presentation  Control measures during preparation - Accurate weighing - Use of standard recipes -

Correct preparation methods - Use of correct tools and equipment  Control measures during

production - Use of standard recipe - Use of efficient equipment e.g. non-stick pans - Strict observation

of cooking duration - Strict observation of cooking temperature - Choice of the correct production

methods  Control measures during presentation - Use of correct service equipment - Use of portion

control aids Suggested Questions Discuss by use of specific examples the control procedures that chefs

should employ when preparing and cooking foods to avoid wastage thus control food costs. 10.1.09

ACCOMMODATION COST CONTROL 10.1.09T Specific Objectives By the end of this sub-module unit, the

trainee should be able to: a) explain the importance of control in housekeeping, laundry and front office

368 b) discuss cost control measures used in housekeeping, laundry and front office Unit Tasks Unit

task1 Explaining the importance of cost control in housekeeping, laundry and front office  to make

operations more efficient and cost effective  to evaluate the degree to which departmental objectives

are being met  to take preventive measure against theft, pilferage and misuse of material and

equipment  to prevent wastage of materials Unit task 2 Discussing cost control measures  Costs of

cleaning and maintenance - Careful selection, induction and training of all staff - Standardization of

surfaces, furniture, fittings, equipment and cleaning materials - Use of mechanization- providing

sufficient equipment for all staff so that time is not wasted waiting for equipment to be available. - Good

planning and layout of premises - Good planning and organization of staff - Good supervision and means

of checking work standards - Use of standard times for various tasks-- use of job analysis - Use of work

study, method study and work measurement - Careful purchasing, stores and stock control procedures

to prevent abuse and wastage of materials e.t.c. - Use of contract services especially for very specialized

work. - Use of preventive and planned maintenance - Effective use of preventive devices – e.g. mats, bin
liners, ashtrays, seals, e.t.c. - Good communications system - Keeping up to date with modern

technology – being prepared to accept change 10.1.10 CONTROL OF SALES 10.1.10T Specific Objectives

By the end of this sub-module unit, the trainee should be able to: a) explain checking methods b)

describe the distribution of cheques c) explain billing methods d) describe methods of payment. Unit

Tasks Unit Task 1 Explaining checking methods  Importance of checking systems o To provide the

cashier with the information to make up the bills o To keep a record of all food and drinks used o To

keep a check on stores so that wastage can be minimized and pilferage discovered o To store

information so that the cost of each menu item can be calculated accurately and the profit made on it

worked out o To provide a breakdown of sales and financial statistics  Checking methods o Triplicate

checking system o Duplicate checking system o Electronic billing machines o Computerized checking

systems Unit Task2 Describing the distribution of checks  For control purposes the following

information must filled on a food check -Table number -Number of covers 369 -Date -Signature of the

waiter/waitress taking the order Sample food check before and after order is taken (Name of

Establishment) Table No. --------- No. of Covers -------------- Top copy Date ----------------- Signed

---------------------- (Name of Establishment) Table No. ----------4------------- No. of Covers -----------2------- 1

Tomato juice 1 Crème Dubary ***** 1 Beef stew 1 Roast chicken 2 [Link] Date 2/02/2010 Signed Joy

 Distribution of checks in the triplicate system - The top copy of the food order goes to the kitchen and

is handed to the aboyeur - The duplicate goes to the cashier who makes out the guest’s bill. - The third

copy is retained by the waiter at his/her sideboard as a means of reference.  Distribution of checks in

the duplicate system - The top copy of the food order goes to the kitchen and is handed to the aboyeur

at the hotplate. - The duplicate goes to the cashier who makes out the guest’s bill. Unit Task 3 Explaining

billing methods 1. Bill as check Second copy of order used as a bill 2. Separate bill Bill made up from

duplicate check and presented to customer 3. Bill with order Service to order and billing at the same

time e.g. bar or takeaway method 4. Prepaid Prepaid customers purchase tickets or cards in advance
either for specific meal or specific value. 5. Voucher Customer has credit issued by third party for either

specific meal or specific value e.g. luncheon voucher or tourist agency voucher. 6. No charge Customers

not paying i.e. credit transaction 7. Deferred Refers to, for example function-type catering where the bill

is paid by the organizer Unit Task4 Describing the methods of payment 1. Cash The amount of cash

received by the operator should always be checked in front of the customer and change given be

counted back to the client. It should be accompanied by an itemized and receipted bill. 2. Cheque 370

This payment should always be accompanied by a cheque card. The cashier should confirm the following

points in the cheque; - Dated correctly - Made payable to the correct company - Filled in with the

correct amount. - Signed by the person indicated on the cheque. The operator should also check that

the card is valid. 3. Credit cards On receipt of a credit card it should be checked for validity. A voucher is

then made out and the appropriate details filled in. The customer is then requested to sign the voucher,

which is then counter checked with the credit card. The customer receives a copy of the voucher as a

receipt. Credit cards also be checked for validity by passing it through an electronic machine after which

details of the transaction are printed. 4. Debit cards Used in a similar manner to credit cards but results

in the amount due being immediately deducted from the customer’s bank account. 5. Charge cards Here

the customer is normally invoiced once a month for all services rendered during that month. The

account must then be paid up in total and no is allowed. Examples include Diners club card. 6. Vouchers

and tokens Vouchers such as luncheon vouchers may be offered in exchange for food in those

establishments accepting such vouchers. These vouchers have an expiry date. Should food be purchased

over the value of the voucher the difference would be paid for in cash. Tokens may be exchanged for

specific meals or for certain values. If food purchased is more than the value of the token, then the

difference is again paid in cash. Suggested Questions 3. Explain the importance of revenue control in a

market oriented catering establishment 4. What are the functions of a restaurant checking system?

10.1.11 EMERGING TRENDS 10.1.11T Specific Objectives By the end of this sub-module unit, the trainee
should be able to: a) identify trends in catering and accommodation cost control b) identify challenges in

catering and accommodation cost control c) explain ways of coping with challenges in catering and

accommodation cost control. Unit Tasks Unit Task 1 Identification of trends Unit Task 2 Challenges Unit

Task 3 Coping with challenges 10.1.11T Specific Objectives By the end of this sub-module unit, the

trainee should be able to: a) discuss challenges in catering and accommodation cost control b) outline

ways of coping with challenges in catering and accommodation cost control