[Cost Control for Food Operations] Debra Adams

Transcription

1 [Cost Control for Food Operations] Debra Adams

2 Food Waste in the UK 15 million tonnes of food wasted in the UK every year Total UK food waste cost over 19bn from Sources:

3 Food Waste in Hospitality 920,000 tonnes of food wasted from UK Hospitality every year Equivalent of good food being wasted 1.7 billion worth of Expected to reach year by billion per By not throwing away good food and ensuring other food waste, like peelings, cores and bones are directed to anaerobic digestion, UK pubs, restaurants and hotels could save in the region of 720 million per year Sources:

4 Food Waste in Restaurants arises from: 34% 21% 45% Spoilage Food Preparation Food Returned on Plates Sources:

5 The importance of the cost of food used Cost of food used Opening inventory + Purchases - Closing inventory Cost of food used as a % Cost of food used / Income received

6 Determining actual food cost Opening Inventory + Purchases = Goods available for sale - Closing Inventory = Cost of food consumed *Employee meals is a labour related cost, not a foodrelated cost. It is an employee benefit. - *Employee meals = Cost of food sold Food cost can be shown as a percentage of food sales: Food Cost % Cost of food sold Food sales

7 Best Practice in. Purchasing Inventory control Labour cost control Receiving inventory Menu forecasting Issuing Storing inventory Production Process Standardising recipes Managing yield Theft control Menu pricing

8 Inventory control Purchase point The purchase point is the point in time when an item should be re-ordered. This point in time can be established with one of the following methods: As needed (just in time) Par level

9 Inventory ratios Inventory turnover The number of times the inventory changes in a set time period Inventory days The number of days the inventory is stored in the business Try the example on page 8

10 Purchasing Each ingredient or product should have a product specification (spec) which includes: Product name/specification number Weight range/size Pricing unit (pounds, kilograms, litres, etc.) Standard/grade Container/case size (if applicable) Processing/packaging Shelf life

11 Receiving The process of receiving involves: Checking the Purchase order against the delivery invoice. Checking the actual inventory against the delivery invoice. Must check: Correct product Weight/size Chilled/frozen Brand Cut Damage/spoilage

12 Receiving corrections This process identifies: Shorting Incorrect products Theft A credit memo is a formal way of notifying the supplier that an item listed on the invoice is missing, and the value of that item should be deducted from the invoice total.

13 Storage Storing inventory costs money, in terms of the space required and the money tied up in inventory. The storage process not only involves the movement of inventory to its holding place, but also: The maintenance of quality and safety/hygiene The maintenance of security The counting and valuation There are two main storage methods: LIFO FIFO Inventory valuation: Item Inventory Value Item amount (count or weight) x Item value

14 Issuing Issuing or requisitioning is the process of placing of products into the production system. The process involves: Only requisitioning inventory as needed. A record of issues (a requisition for) should be kept. Unused products should be returned to storage and the return should be recorded. Requisition forms should be given to the person in charge of purchasing so that they can see the movement of products.

15 Menu-item forecasting To be able to forecast sales, it is necessary to keep a good record of historic sales. The percentage of total guests choosing a given menu item from a list of alternatives is known as the Popularity Index: Popularity Index Total number of a SPECIFIC menu item sold Total number of ALL menu items sold To calculate the individual item forecasting: Predicted no of item to be sold Example on page 15 No guests expected x Item Popularity index

16 Standardised Recipes A standard recipe is a list of the ingredients and their quantities and the procedures required to make a specific product so that: It is exactly the same every time. Product usage is controlled. Costs are controlled. Quality is controlled A good standardised recipe contains the following information: Menu item name Total number of servings (yield) Portion size List of ingredients Preparation/method section Cooking time and temperature Special instructions, if necessary Recipe cost (optional)

17 Determining attainable food cost Operational Efficiency is the measure of how efficiently you are operating by comparing how well you are doing with how well you could be doing. Firstly, determine the attainable product cost - The cost of goods sold figure that should be achievable given the product sales mix. Operational efficiency ratio Actual food cost Attainable food cost

18 Reducing overall product cost percentage Food cost percentage formula A = C B A = Cost of Goods Sold B = Sales C = Cost percentage 6 approaches to reducing overall product cost percentage: 1. Decrease portion size relative to price 2. Vary recipe composition 3. Adjust product quality 4. Achieve a more favourable sales mix 5. Ensure that all products purchased are sold 6. Increase price relative to portion size

19 Thank you!

20 Performance Trends in Building Cleaning and Catering Results from the most recent round of APSE benchmarking Results from 2014 APSE State of the Market Survey Discussion and analysis

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29 State of the Market Productivity improvement

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38 Corporate Cleaning Services

39 Corporate Cleaning Services Introduction Corporate Cleaning Services continue to provide a comprehensive Service within both school and office environments Our objective is to continue to provide a optimum, quality and value for money service Review Cleaning Service to identify efficiencies whilst still providing quality service delivery

40 CORPORATE CLEANING SERVICES What did we do? Reduce the management structure Plan to achieve MTFS Meet client s expectations Reduce frequency of cleaning Implement Daytime cleaning Review of cleaning service

41 CORPORATE CLEANING SERVICES What did we do? Continue to ensure that cleaning staff undertake comprehensive training Develop plans to introduce Team Cleaning and reduce the frequency of cleaning Continue to advertise our services Develop a package to support schools who manage the service in-house Focus on management of sickness absence Produce bespoke cleaning specification

42 CORPORATE CLEANING SERVICES We continue to... Obtain further efficiencies Decrease staffing levels where identified Stakeholder collaboration Improve H & S within the service Review the cleaning service

43 CORPORATE CLEANING SERVICES Any questions...