3/5/2014. Controlling Food Cost during Service and Sales. Learning Objectives. Case Study page 203

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1 Controlling Food Cost during Service and Sales 8 OH 8-2 Learning Objectives Explain the importance of portion control to food cost. Explain the importance of training, monitoring, and follow-through as they relate to the service team. Explain the importance of product usage and waste reports to control the cost of high-cost food items. List and describe each payment method used by the hospitality industry. Explain how to complete a daily sales report. OH 8-3 Case Study page 203 How would cooks not requiring tickets present an opportunity for the servers to mishandle cash? What are the disadvantages of using a paper duplicate check system? How can Enrique make sure that every guest order is recorded? When thinking about service, what are the 2 main causes of loss in the service step of our operation? OH 8-4 1

2 The Major Cost Control Device in Serving Portion Control! Over-portioning results in the restaurant s owners being treated unfairly. Under-portioning results in the restaurant s guests being treated unfairly. OH 8-5 The Cost of Over-portioning Item: Corn, Frozen Whole Kernel Purchase Unit = 30 lb case Cost = $23.90 per case Portion size = 3 oz First how many 3oz servings can I obtain from this box? Second what is my cost for a 3oz portion? OH 8-6 The Cost of Overportioning Item: Corn Portions per Case Cost = $23.90 per 30 lb box Portion Size in Ounces 3.0 oz = the standard If 3.5 oz If 4.0 oz Portion Cost per Serving OH 8-7 2

3 Preportioned Items Some menu items come already portioned. 2 oz hot dogs Precut steaks Rib slabs Half-pound frozen hamburger patties Bananas Carton or bottled beverages OH 8-14 Items Not Preportioned Items that are not pre-portioned must be carefully portioned. To control costs To ensure consistency To ensure a positive price-value relationship in each guest s mind To avoid running out of a product OH 8-15 Team Approach Servers - FOH Chefs - BOH OH

4 Portion Control Tools Scoops & Ladles Also known as dishers Used to portion fluid ounces and semisolid products OH 8-17 Portion Control Tools continued Serving spoons Slotted used to separate solids from liquids Solid used to serve solids and liquids OH 8-18 Portion Control Dishware Ramekins Used for small amounts of sauces and salad dressings Individual casseroles Typically round or oval oven-proof dishes Range in size from five to twelve ounces OH

5 Portion Control Dishware continued Cups Typically hold five to six ounces Bowls Typically hold six to ten ounces OH 8-20 Portion Scales Are used for items portioned by weight Must be kept very clean Can be adjusted to subtract the weight of the container holding the product Are designed to weigh items as heavy as thirtytwo ounces OH 8-21 Other Scales used in Foodservice for Control Receiving Bench Scale Baker s Beam (Dough) Scale OH

6 Preportioning Preportioning items prior to the start of a meal period Ensures consistency Reduces errors in portion sizes Speeds production times OH 8-23 Portion Control Training All food production and service employees require portion-control training. Training must be ongoing. Service personnel must be continually reminded of proper portion sizes. OH 8-24 Portion Control Training continued Servers must be very knowledgeable about portion sizes if they are to consistently satisfy their guests. OH

7 Other training tools Job Descriptions Work Assignments Station Diagrams Menu Training Customer Service Standards and Training Suggestive Selling OH 8-26 Additional Management Tasks Monitor and follow through Pre-service meeting & check/inspect Visually inspect served food items as frequently as possible. Regularly check the sizes of scoops and ladles used for portioning. OH 8-27 Ensure proper plate presentation. Portion size Item placement Garnish Portioning Reports Product Usage reports tell The number of items issued to the cook s line The number of items sold to guests The number of items returned to inventory Used to track high-cost items Waste reports tell The items returned by guests The reasons for their return OH

8 Sample Product Usage Report OH 8-29 Waste Reports Critical to food cost control Easily completed Should be maintained for each shift May indicate Where training is needed Production concerns that require attention OH 8-30 Sample Waste Report OH

9 Analysis of Waste Reports Determine why each item had to be discarded. Develop a strategy to prevent similar future losses. Share findings with those who need to know. OH 8-32 Controlling Costs in Sales Depends on a properly designed and managed process for communication of orders to kitchen Depends on a properly designed and managed process for collecting and accounting for payments for services rendered. OH 8-33 Duplicate Guest Check and POS Control Systems OH

10 Duplicate Guest Check System Step 1 Assign guest checks. Assigned at beginning of each shift Each server receives a specific allotment of guest checks. Guest checks are prenumbered. The checks are two-copy writing on one copy imprints the same information on the second copy. OH 8-35 Duplicate Guest Check System continued Step 2 Server writes the order. This copies the order onto the second (duplicate) copy of the check. Step 3 Second copy goes to kitchen. The kitchen keeps this copy of the check after filling the order. OH 8-36 Duplicate Guest Check System continued Step 4 The guest is given the original copy of the guest check as confirmation of the order and as the bill to pay. Step 5 Guest pays the bill. Typically, the guest pays either the server or a cashier. OH

11 Duplicate Guest Check System continued Step 6 At shift s end, the server returns used and unused checks and all checks are accounted for. Step 7 Managers collect duplicate checks from the kitchen. Line cooks must safeguard all check duplicates (copies). OH 8-38 Duplicate Guest Check System continued Step 8 Manager or bookkeeper matches originals with duplicates. Some restaurants Charge servers for missing checks. Discipline servers for missing checks. Terminate servers for missing checks. OH 8-39 POS Systems Cashiers and servers are assigned individual codes. Servers enter orders that are automatically displayed or printed in the kitchen. OH

12 POS Systems continued Upon guest request, the server prints the bill. The guest and restaurant retain one copy of the bill. Information about check totals are printed or read at the end of each shift. OH Duplicate Check vs. POS System OH 8-42 Payment Methods Cash Credit cards Debit cards Travelers checks Personal checks Other House accounts Corp accounts Comps OH

13 Cash Handling Procedures Before the shift Managers issue precounted bank to cashiers. Cashiers count banks to verify amount. During the shift All cashiers secure cash banks during their shifts. Cashiers collect cash, checks, and charge slips from guests. OH 8-44 Counting Back Change Six Steps Step 1 Announce the total owed by the guest before accepting payment. Step 2 Place the currency in a place visible to the guest. Step 3 State the value of the payment presented. OH 8-45 Counting Back Change Six Steps continued Step 4 Verbally count the change upward, from the smallest coin to the largest denomination. Step 5 Place the change directly into the guest s hand. Step 6 After the guest has acknowledged the correct change has been received, place the bill in the cash drawer, and..? OH

14 Cash Handling Procedures continued At the end of the shift Manager takes cash register readings. Cashiers count drawers and deduct the amount of the starting bank. Cashiers report cash on hand on a Cash Report. Managers prepare a Daily Sales report based on totals from the cashiers reports and cash register readings. OH 8-48 Example of Cash Report OH 8-49 Example of Daily Sales Report OH

15 Figuring the Daily Sales Report Let s practice Figuring the Daily Sales Report Theft and Reputation What Should I Do? Chapter 8 Practice Problems OH 8-51 What to look for at cash registers Some cashiers use pennies, toothpicks or other items to track funds that are in the registers, but have not been rung into sales Cashiers who have the same coin in two different slots can be using one to track funds NOTHING should be in/on the cashier station including purse, bag, storage. OH 8-52 Preventing Skips Present bill promptly, return to collect soon, monitor Have cashier/host visible at all times Notify manager immediately if notice guest leaving without payment Language is everything overlooked paying? Refusal to pay, loud, angry customer call police OH

16 How Would You Answer the Following Questions? 1. Information about a guest s meal that was returned to the kitchen by the guest because it was below the restaurant s standard would be found on the (product usage/waste) report. 2. The acceptance of personal checks by restaurants is (increasing/decreasing). 3. The size of a single portion produced when using a number 8 scoop is A. 8 ounces B. 4 ounces C. 2.5 ounces D (or 1/4) ounce 4. A Daily Sales Report should be completed by (cashiers/managers). OH 8-54 OH 8-56 Chapter 8 Controlling Food Costs during Service and Sales Key Terms: Bank An amount of money issued to each cashier that consists of coins and dollar bills sufficient to make change. Cash-handling procedure An activity that operations follow to ensure that all cash and charge transactions are accurate and accounted for. Cash report A form filled out by the cashier to report all money, checks, and charge slips collected during a shift. Credit card A card that obligates the user to pay the credit card company for the products and services charged to the card. Daily sales report A form that shows sales, cash, and charges collected, as well as any money over or short for a shift. Debit card A card used to pay for products and services in which the amount is immediately withdrawn from the cardholder s bank account. Duplicate guest-check system A procedure that uses written records of what guests purchased and how much they were charged for the items. Chapter 8 Controlling Food Costs during Service and Sales OH 8-57 Key Terms continued: Gross weight The combined weight of a food item and a plate. Menu training A list of all menu items with detailed descriptions, which teaches employees about the establishment s offerings. Nonsufficient funds (NSF) A situation in which a check s bank account did not contain enough money to cover the amount written on the check. Point-of-sale (POS) system A system for controlling the operation s cash generation, product usage, and inventory. Portion control The amount of food in a serving as determined by the standardized recipe or the company standard. Portion control device A device that assists in the portioning of food items, including scoops, ladles, serving spoons, serving dishes, and portion scales. Pre-portioned item A food item that is measured or weighed prior to going to the service line. 16

17 Chapter 8 Controlling Food Costs during Service and Sales Key Terms continued: Product usage report A report that details the number of items issued to the cook s line, the number returned to inventory, and the number sold to customers. Speed scratch Premade products that are nearly complete but lack finishing touches such as sauces and flavoring. Suggestive selling Value-added suggestions from servers to increase the number or type of items customers purchase, often called up-selling or add-on selling. Table management A process of managing customer preferences, seating capacity, and available staff. Tare The difference between gross and net weight (e.g., the weight of the plate that the food is served on). Waste report A report that lists any item that had to be discarded and the reason why. OH