Operating Controls
in the Foodservice
Industry
Define Control.
Identify the internal environments in a foodservice operation and the
external environments that affect all foodservice organizations.
Recognize the interrelationship between front-of-the-house operations
and back-of-the-house operations.
Identify the steps of a basic management control system.
Relate the steps in the basic management control system to the steps
in the Operating Cycle of Control.
Use the Operating Cycle of Control to trace the coordinated
procedures involved to manage a foodservice operation.
Identify the variety of sources of information required to manage a
foodservice operation.
Be familiar with the elements of the restaurant profile designed for
this text.
Maximize food and beverage sales
Control expenses
Manage employees
Maximize profits
Control over all items of income
Control over all items of expenses
Control over the flow of products and
services
Front-of-house functions
Back-of-house functions
Management functions
External Environment
Media
Government
Front of- Back of-House
Regulations
House Functions
Functions •Menu planning
•Seating •Purchasing
New •Sales •Inventory
Technology •Serving management
•Busing •Food production
eemela
•payment •Dish-room operations Local
Market
conditions
Management function
Supplier •Planning
Relations •Organizing
•Influencing
•controlling Labor-Force
National Demographics
Economic
conditions
Perspective for Control
Causes of Excess Cost in Foodservice Operations
Having clear, precise standards in place eliminates:
◦ Inefficiency
◦ Fraud
◦ Errors
◦ Waste
The four greatest causes of excess cost in the foodservice
operation
Employer and Employees have a vital interest in
ensuring that control system is reliable and
effective
◦ Managers use cost-control systems to help pinpoint
responsibility for inefficiency, fraud, errors, and waste.
◦ Employees should be aware that control systems can
protect them and reward them for good performance.
CostControl system for foodservice
industry are designed for three primary
purposes:
◦ To establish an efficient operation
◦ To prevent fraud or theft by employees or guests
◦ To ensure that the operation functions in a
manner that compiles with the goals of
management
Step 1
Set standards Recycle
through
the process
Step 4 Step 2
Take corrective Measure
action performance
Step 3
Have standards been
met?
The Operating Cycle of Control is
defined as
◦ A control cycle that divides any food and
beverage operation into a series of
coordinated procedures that are necessary to
profitably and efficiently supply food and
beverage products and services to guests,
given an accepted volume of business.
Pre-Purchased
Functions
Guest Check
Standardized recipe
Guests Recipe Cost Cards
Specifications
FOH Functions Par Stock
Requisition
Kitchen Production
Shopping Lists
Product Issuing
Purchase Orders
Storage Practices &
Inventory Management & Issuing
BOH Functions
Invoice Management
Receiving Activities
Control and Labor Costs and Technology
Service and Labor
Prime Cost
❖Food Cost: the cost of food products to generate
sales.
❖Beverage Cost: the cost of the alcoholic beverage
products used to generate alcoholic beverage sales.
❖Labor Cost: the cost of payroll and benefits needed
to generate sales.
New technology affects Costs and operating
efficiencies:
❖Old Paradigm
• The customer’s order is taken by a server and
transmitted either verbally or on a handwritten guest
check to the kitchen staff.
❖New Paradigm
Servers utilize a handheld touch-screen
Or fixed-position point-of-sale (POS) terminal with a
touch-screen
The new technology that has changed “DOING”
in the food service business:
1. Point-of-sales systems.
2. Touch screens for server ordering.
3. Customer and server pager ordering.
4. Automated kitchen systems.
5. Internet Web sites for restaurants, suppliers, and other
related businesses.
Information available to managers must help
them to do several things:
1. Set goals
2. Plan strategies
3. Implement procedures
4. Evaluate results
The following are some specific subject areas of
information that are relevant to foodservice
operation:
1. Menu concept
2. Food cost
3. Beverage cost
4. Labor cost
5. Other operating cost
6. Revenue
The menu provides the customer with essential
information for making a choice. Its is designed to
reflect the foodservice concept.
Examples of Foodservice Concepts:
❖Seafood restaurant
❖Mexican theme restaurant
❖Asian cuisine
❖Steak house
Therecipe determines the ingredients
needed to produce meals.
Food ingredients are all the food product
items used to produce meals.
The information needed to control food
purchasing, receiving, storage, and
preparation cost may be presented manually
or electronically.
Types
of Food-Cost Reports
❖Food cost percentage reports
❖Inventory forms
❖Invoice payment schedules
❖Recipe-cost charts
❖Standardized recipes
Beverage costs must be controlled. Many of the
techniques used for controlling beverages costs
are the same as for controlling food costs.
Techniques for ordering, paying for, transferring,
and requisitioning beverage.
Types of Beverage-Cost Reports
❖ Alcohol use reports
❖ Beverage recipes
❖ Beverage-cost reports
❖ Bar-and inventory-control reports
All foodservice establishments must use labor and
facilities to accomplish their service goals.
Labor and productivity information can be
collected and evaluated using the following
forms:
❖Job descriptions
❖Daily work sheets
❖Productivity charts
❖Work schedules
❖Kitchen production charts
❖Workers’ compensation reports
Information related to the sale and service of menu items to
customers is referred to as sales information.
This information also relates to collecting money and
measuring how satisfied customers are with their
experience.
Sales
information is collected and
monitored using several types of reports:
❖Guest checks
❖Cashier’s reports
❖Daily, monthly and annual reports
❖Server shift reports
❖Guest check daily report
❖Marketing program analysis