Food and Beverage Cost Control 1st Semester

2022-2024

UNIT III: 2022-2023

Food Control

I. Introduction
II. Objectives
III. Food Control
a. Food Purchasing Control.
b. Food Receiving Control
c. Food Storing and Issuing Control
d. Food Production Control
e. Food Cost Control
f. Food Sales Control
g. Standard Yield
h. Standard Portion Sizes
i. Standard Recipes
IV. Glossary

Hanna Vi B. Polido, MBA-HM

Instructor

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I. Introduction 2022-2023

Food and Beverage control may be defined as the guidance and

regulation of the cost and revenue of operating the catering activity in the
hotels. An effective Food and Beverage control system is based upon correct
up-to-date policies and operational procedures. This control system requires
constant management supervision and action. The amount of control necessary
is related to the size and complexity of an establishment. The management of
any catering operation has to be fully aware of everything that is taking place
within and outside the operation and, to be successful needs to be continually
collect, analyse, and evaluate data and take any necessary steps to correct
anything which is irregular to the standards set for the operation.

II. Objectives
• Explained Food control Measures.
• Discussed Food Receiving, Storing, and Issuing control.
• Familiarized the Standard Yield and Standard Portion Size.
• Discussed the advantages of Standard Recipe

III. Food Control

A Profitable food & Beverage operation is an operation that has solid
controls and procedural guidelines designed to minimize waste, theft, and
perishability of those raw materials. One of the most important areas of food
control is the kitchen. The production process
begins and ends in the kitchen area.
Preparation of food items and the production
cycle are centered on the raw materials
required to create various menu item
selections. The production cycle begins with
the menu and ends with the disposal or re-
use. Maximizing food profits requires
minimizing waste, theft and spoilage. The food
control refers to directing and regulating the cost and revenue of any food
service outlet. The cost of food might vary from 25% to 50%, depending on the
type of catering –institutional or commercial. As the amount of money involved
in an operation could be high, control measure has to be established.
Therefore, for a larger commercial establishment, more precise, accurate, and
detailed information is required as compared to a smaller establishment. An
effective control system can assist the management to identify problem areas
and the course of the food establishment. The management has to act on the
problem area and the course of food establishment. The management has to
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act on the problem areas and come up with a solution, keeping2022-2023 the system
under its strict supervision. In any catering establishment, the raw materials
have to be processed so that the finished dishes can be served to the guest.
There are various steps on each step there are control measures. As the
process is continuous it is said to be a control cycle. The steps in a control cycle
are shown in Fig. 2.1
For procuring things, the description has to be documented with
specification detailing the desired quality, size, and weight of particular items.
The standard purchase specification also includes the utility of the product and
the product test procedure. In this process, supplier selection is also
considered. A receiving procedure has to be laid down with proper financial and
security consideration so that the exact quantity and the right quality of goods
are received. When storing food, proper inventory measures have to be taken.
The product’s quality has to be verified and stored as per the respective area.
The stores should record all items received and all items which have been
issued to production. The items to be issued have to be requisitioned and
approved by the authority on which the items have been issued. When items
are issued, care must be taken so that the product rotation is done properly.
The authority concerned should match the issue with the usage and suggest
items for purchase only when the inventory is depleted. All food items should
be considering the forecast of sales. The mise-en-place should be done for all
dishes to be prepared. Care must be taken so that there is minimum wastage
of food items, whereas the maximum nutritive value of the food is retained. The
food is prepared considering the standard recipe which has been laid down for
a particular dish. While preparing dishes, various portion control measures have
to be taken so that the food is prepared as per the need. After the food is
prepared, it may be refrigerated or stored in a deep free for future use. The food
item is prepared and stored as per the usage and the rotation of the prepared
food is complete as raw materials are ready. The food should be kept ready
especial during peak items so that it can be served as and when the guests
stared ordering, considering the time taken for the food to be prepared from the
kitchen and the time taken by the service personnel to serve the guests. The
food served to the guests should be portioned and all portion control measures
should be taken so that standardized food is served to them. After the food is
served to the guests, bills have to be generated for the value of food consumed.
Revenue management and revenue control measure should be taken care so
that no revenue loss takes place at the cost of the expenditure undertaken.

a. Food Purchasing Control

Purchasing may be defined as a procurement function concerned with
search, selection, purpose, receipt, storage, and final use of commodity in
accordance with the catering policy of the establishment. Food purchasing
control involves the following:
• Developing purchase specification
• Preparing an approved supplier list

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• Determining appropriate order size 2022-2023
• Establishment appropriate receiving and storage procedure

Food purchasing control consists of developing standards and standard

procedures for purchasing and outlines the following:
1. Purchasing Policy
❖ Corporate
❖ Centralized or decentralized

2. Purchasing Research
❖ Markets and materials
❖ Marketing channels
❖ Price trends

3. Product Evaluation and assessment

❖ Product testing
❖ Yield testing

4. Food Purchase Specifications

5. Purchasing methods
❖ By contract
❖ By Quotation
❖ By cash and carry, etc.

6. Clerical Procedures
❖ Documentation
❖ Information Processing
Once a menu is planned, a number of activities must occur to bring it into
reality. One of the first and most important stages is to purchase and receive
the materials needed to produce the menu item. Skillful purchasing with good
receiving can do much to maximize the results of a good menu. It is important
to determine yields from the range of commodities in use, which will determine
the unit costs. Yield testing indicates the number of items or portions that can
be obtained and helps to provide the information required for producing
purchasing specifications.
Yield testing should not be confused with product testing, which is
concerned with the physical properties of the food texture, flavor, and quality.
In reality, tests are often carried out which combine both of these requirements.
Unless communication lines are set up to inform buyers of production needs
and to inform receiving clerks, accounting personnel and others of orders and
expected arrival times, poor buying and control occur. Management will
establish many requirements that must be met in control: the routing of
paperwork, payment policies, receiving procedures, check to ascertain quality.

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Requisition and inventory control must be implemented. Control2022-2023
begins with
the calculation of the amount and the writing of the specification. Orders are
usually placed through a purchase order. This states the item or items required,
amount, size, weight, and other pertinent information. All purchase orders have
numbers so that they can be quickly identified. Purchase orders should be
signed only by an authorized person. One copy is normally held by the
individual issuing it, one may go to the accounting department, and another to
be receiving rooms. Copies are sent to the supplier. In some cases, it may be
a requirement to have the purchase order signed and returned by some
individual in the supplier’s company so it is known that the order will be honored.
Regular purchase orders are for one single order to be delivered at a
specified date “open delivery‟ purchase orders establish the purchase of items
over a period of time.
Items needed daily or weekly are often purchased by open delivery orders.
A purchase record may be maintained. This record may indicate what was
ordered and from whom, as well as any other information that may need to be
maintained. A purchase price record usually is maintained on cards to keep
information on the price paid for a particular item.

Requisition

New requisitions select a Previous purchases standard

supplier from a list of new purchasing specification
supplier checked with purchasing

Obtain quotes, negotiate Place, purchase Order; Keep

price, deliveries, etc. copies in purchase office with
receiving clerk

Receiving

Clerk
Checks made against Check delivery note, invoice
Purchase Specification:
and statements
Check quality Tag all meats
Check Weights List all item delivered
Store items promptly
and properly

Transaction Complete

Fig. 2.2: Purchasing Control System

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b. Food Receiving Control 2022-2023

All goods which come to the establishment are sent to the receiving
department. The receiving department has to record all the items received and
maintain the records in various files or books. Nowadays, all records are
computerized, and the details of each item can be easily queried. Records such
as invoice, delivery notes, goods received note, and daily receiving report are
maintained by the receiving section.

Invoice or Bill: As and when food or any item is delivered to the establishment,
it should be always accompanied with a document, which supports that the
items have been delivered. The document delivered is known as the invoice,
which is similar to the bill. An invoice is a business document issued by a
vendor to a purchaser, signifying the products and their quantities, approved
prices for the products or services, which the vendor has already provided the
purchaser with. An invoice also states briefly that if it is not paid in advance, the
payment is due by the purchaser to the vendor as per the decided terms. A bill
is a document which is generated for claiming the payment for goods either
already supplied or just delivered. It provides the total price for services and
goods delivered to a client, but for which no amount is paid and is presented in
anticipation that payment would be made in full. An invoice is always prepared
in duplicate is presented to the receiving clerk by the delivery person, who will
expect the receiving clerk to sign and return the second copy. The invoice
serves as an acknowledgement to the vendor that the establishment has
received the products listed on the invoice. The original copy is, in effect, a bill
which must now be routed to the accounts department or to whomsoever
responsible for paying the bills. On receipt of the bill, the receiving clerk should
rubber stamp the bill and verifies the information such as date, name of the
receiving person, signature, price, and mention the bill is verified for payment.

XYZ Suppliers Ltd.

Invoice
No: Date:
To
ABC Hotels
Sl. No. Description Quantity Unit Price Amount

Less: Discount
Total
Signature

Table 2.1: Specimen of Invoice

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Delivery Notice: A delivery notice is a document that is sent by the2022-2023
seller to the
buyer to notify them that the goods are ready for delivery. A delivery note comes
along with each supply sent by the vendor. It mentions only the details about
the quantity and does not disclose information regarding the rate or amount.
The delivery note received is then tailed with the purchase order to confirm the
quantity ordered. Two copies are prepared for the delivery note, which mentions
that goods received are as mentioned in the purchase order and the delivery
note. The original copy of the delivery note is taken by the receiving department
and the duplicate copy is signed by the receiving department’s official which is
sent back to the vendor by the delivery person.
It typically includes the following information:
• The name and address of the seller and buyer
• The order number
• A list of the goods to be delivered
• The quantity of each good
• The delivery date and time
• The delivery terms (e.g., FOB, CIF)
• The contact information for the seller
The delivery notice is an important document as it serves as a confirmation
of the buyer's order and the seller's commitment to deliver the goods. It is also
used to facilitate the delivery process by providing the buyer with the necessary
information about the goods and the delivery terms.
The delivery notice period is the amount of time that the seller has to deliver
the goods after the delivery notice is sent. This period is typically specified in
the sales contract. If the seller fails to deliver the goods within the delivery notice
period, the buyer may be entitled to cancel the order or seek damages.
Goods Received Note: This type of delivery notice is issued by the buyer to
the seller to acknowledge the receipt of goods. It typically includes the same
information as a delivery notice, but it also includes the buyer's signature and
date of receipt. For any well-organized organization, all material would be
received by the goods-receiving department. The receiving department checks
the quantity, quality, and condition of items to be received against the copy of
the purchase order from sent to it as well as the supplier’s advice note. If the
goods are acceptable, a goods received note (GRN) is raised. The GRN
mentions the date, vendors name, purchase order number, quantity, and
explanation of the goods. After it is prepared, the GRN is usually signed by the
head of the department or any person who has been authorized to do so. The
number of copies of GRN to be prepared depends upon the establishment. In
general, five copies are prepared and distributed to the purchasing, accounts,
receiving, stores, and ordering department.

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ABC Hotels 2022-2023
Goods Received Note GRN
NO:
Supplier: Date Received: Advice
Note A/c:

Sl. Goods Pack Size Price Order Deliver Comme

No. Quantity Quantity nts

Received By: Checked By:

Table 2.2: Specimen of Goods Received Note

The food is divided into two different quantities as some food purchased
is for immediate use, whereas some items are kept in the inventory until
required. As per the controls, the food that are charged to the costs are known
as directs and those charged to costs when issued from the inventory are called
stores. Directs are those food items, which are extremely perishable in nature
and are more or less purchased on daily basis for immediate use. These items
are purchased every day and are issued to the respective departments as soon
as they are received and are included in the food cost on the date of delivery.
The F & B controller of an establishment may categories the food into directs
and stores as per the storage capacity available and usage. The receiving clerk
daily report is prepared for all items received on a particular day. It is prepared
by the receiving clerk who records the data obtained from the invoice in
appropriate columns on the report followed by totaling each invoice into one of
the three columns under Purchase Journal Distribution- food direct, food stores
and sundries. The food items are directly issued. The receiving staff should
follow some form of standardized receiving and look for sign of spoilage and
adulteration. When the goods received are returned by the receiving clerk to
the vendor with the returned quality and amount for the return goods, a debit
note is prepared requesting for return of money. When there is a shortage of
goods or if the goods are not as per SPS, the receiving clerk writes as credit
memo/credit note mentioning the details and requesting the vendor to remove
the goods mentioned in the bill. The credit note notifies the vendor about the
misses or shortage and also explains the credit made in the account of the
buyer with the reasons.

c. Food Storing and Issuing Control

Food storing and issuing control is a system of procedures and practices
that ensure that food is stored and issued in a safe and efficient manner. This
system helps to prevent food spoilage, waste, and theft.

The main aim of a food store is to ensure that an adequate supply of foods
for the immediate needs of establishment are available at all items. Foods when

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accepted at the receiving department are categorized as perishable and non-
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perishable items. The perishable items go straight to the kitchens, where they
would be stored in either refrigerators or cold rooms depending on the item.
Perishable foods going direct to the kitchen are often referred to as being on
direct charge in that they will usually be used within one to three days of delivery
by the kitchen. Ideally, meet, fish, dairy Product, fruit and vegetables, and deep-
frozen foods should be stored separately from each other. The non-perishable
items go to a food store where they are unpacked, checked for any damage,
and placed on racking. All deliveries to be recorded in the foods received book
and credit notes obtained for any variance between what is started on the
delivery note and what is actually delivered.
All deliveries of food to be entered into bin cards/ledgers on the day of the
delivery. Maintain certain charges and credits for period inventory. Complete an
inventory of all chargeable containers in the store. At set periods complete a full
stock take of all food stores and food held in the kitchens and compare to
ledgers. Prepare a stocktaking report and stock take variance report.

Food products will require additional storage areas within your

establishment:

Frozen (Freezer) storage areas: Keep these units between (-180c to -

230c), and freeze storage foods quickly when received. Check the foods overall
condition. Keep these units clean and maintained and ensure that the
thermometer which monitors them can be easily read and is in good working
order.

Dry Storage areas: Keep these items between (180c to 240c) and keep a
good amount of dry, clean shelving at least 12 inches (300 mm) off the ground
for hygiene and ventilation (never store dry foods directly on the floor). Keep
bulk items like flour in wheeled bins for easy transportation. Keep it neat and
well organized for stock checking and rotation purposes.

Refrigerated (Chiller) Storage area: Keep this area between ( 2c to 4c),

Never allow warm foods to be place in the refrigeration and ensure that they
are kept at least 6 to 10 inches (150 to 250 mm) off the ground. Clean them
regularly and insist that items placed in the refrigerator are properly stored,
labelled, wrapped, and rotated.

Perpetual inventory for period

Name of Item

1 2 3 4 5 6 7 8
Date No. of Unit Date No. of To Returns to Balances
Delivered Units Price Issued Units Whom Storeroom
Issued

Table 2.3: Specimen of Bin Card

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A bin card is a record of all food items, or other items, delivered, all items
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sent to the production areas. In the majority of catering establishments such
items of food as meat, special processed meat, special processed meats such
as hams, and fish such as smoked salmons, constitute the most expensive of
the purchased foods. Because of this high cost it is not uncommon for units
operating a detailed control system to set up a form of special control of these
items.
Tagging expensive food serves many purposes:
1. It aids the control of expensive foods.
2. It requires the receiving clerk to weigh and record each item, and to
check against the specific purchase specification weight range.
3. It assists in obtaining a more accurate daily food cost percentage figure.
4. It assists in controlling the stock levels of these items.
These operations of tagging of expensive items are as follows:
1. On receiving the items, they are checked against the purchase
specification as to being acceptable or not.
2. 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.
3. The tag is then separated along the perforation with the control office
copies being sent direct to the control with the invoice or delivery note.
4. 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.
5. The control office will usually operate a reconciliation of meat tags form,
recording the tags received from the receiving department and from the
kitchen.
Issuing of food take place at set time during the day and only against a
requisition note signed by an authorized person. When the requisition is a
large one it should be handed in several hours before the items are required
to allow the storekeeper plenty of the time to collect all the food items
together.
Location:- XYZ Hotel
Area- Kitchen Date-
Quantity Items Quantity Unit Cost Total Cost
required Issued Price
3 Bottle Vanilla 2 Bottle 100 200
2 Kilo Sugar 2 Kilo 42 84
3 Kilo Refined 3 Kilo 20 60
Total 344
Requisitioned By:-
Table 2.4: Specimen of Requisition Form
Issues of all food from the stores to be against authorized, signed requisition
only. Entry to food stores to be restricted to authorized personnel.

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d. Food Production Control 2022-2023

In a food production department, the chef brings together material
manpower and equipment to produce a product.
He must produce:
1. When it is needed.
2. Within set specification of the hotel.
3. As economically as possible.

To do this he needs:
1. Understanding of production management techniques.
2. Technical knowledge of the products produced. Kitchen is
like a mini production plant, but unfortunately the chefs are mostly
trained for technical knowledge of product rather than production
management. The chefs are trained as excellent cooks, but not
as good managers. The chefs mostly rise from the ranks and so
they lack management qualities and associate themselves more
with the employees than the management. Management skills
have to come from the chefs as they have to deal with material,
manpower and equipment.

Food Production Management Techniques:

(1) Processing Instructions: Standard recipes are an extremely important
tool to be used in food production control. Almost all food service operations
can use standardized recipes and/or standard procedures in food
production. A standard recipe must list the exact amount of each ingredient,
including spices, the order in which the ingredient including spices will be
added, methods of cooking and portion size.

(2) Production Planning: Production planning is the process of

determining the quantity and timing of production to meet demand. It is a
critical function for any manufacturing or service organization, as it helps to
ensure that products or services are produced in a timely and efficient
manner. Forecasting is a pre control technique. It is an estimate of how
much business you expect to do. A forecast can be for a meal period; for a
day, a week a month or may be a year. Your activities of purchasing,
producing, scheduling of employees etc. are based on forecasts made
ahead of time.

(3) Production Control: Production control is the process of managing and

controlling the production of goods or services. It involves planning,
scheduling, and monitoring the production process to ensure that products
are produced on time, in the right quantities, and to the required quality
standards. To control the proper flow of producing food items and step under
the supervision of chef. It is everything you do to control the exact size of a
portion it does not stand for the size of a portion as such it does not mean
either large or small portion. It however means standardized size in terms

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of weight, volume, or number. Standardized portions means2022-2023
that portion
sizes of a particulars item are constant. Management must relate the portion
size to the price charged. If management fails to control the portion sizes it
will lose revenue and the goodwill.

(4) Inventory Control: Inventory control is the process of managing and

controlling the flow of goods or materials into, out of, and within an
organization. It involves planning, organizing, and controlling the
acquisition, storage, handling, movement, and usage of inventory in order
to meet customer demand and satisfy business objectives. Excessive
inventories, particularly in the food service industry, are not good or
advisable. You are dealing with perishable products or with products or with
products that have short shelf life. The longer you keep the same, the more
chances there will be for waste, spoilage and shrinkage and that costs
money. You should try and turnover your inventory as often as you can, but
you should make sure that your needs are well supplied. The important
aspects of production and inventory control are forecast of sales, standard
recipes, purchase based on forecast, kitchen and restaurant requisition
based on forecasts. Scheduling of work and division of work are important
parts of production control which avoids unplanned hasty production and
work.

(5) Quality Control: Quality control (QC) is a process of ensuring that

products or services meet specific requirements. It is a systematic approach
to minimizing variation in products or services and ensuring that they
consistently meet customer expectations. The prime objective of quality
control is to help maintain or improve profitability by minimizing customers
complaints and therefore to limit the resulting loss in revenue.

e. Food Cost Control

Food cost control is control as applied in establishments operating food
facilities (hotels, restaurants, canteens etc.) with particular emphasis on the
cost of food used. It is quite common to regard food cost control as
something wholly negative a device for cutting costs in all directions. This is
quite wrong. The object of food cost control is to ensure that costs are
neither more nor less than they ought to be.
Control is a process by which managers attempt to direct, regulate, and
restrain the action of people in order to achieve goals. This is essential in
the area of food and other costs because of the many ways in which loss is
possible at each stage in a catering operation. The process by which
costs are regulated and excessive expenditure guarded against is
known as “Cost Control”. Beside the variability in costs due to different
prices and quantities purchased and used, food is indirect to losses in many
different ways as it passes through the production and service cycle.

Factor Responsible for Losses:

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(1) Lack of proper supervision at the point of receiving food from Suppliers.
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(2) Inefficient Menu Planning
(3) Kitchen Production
(4) Service of proposed foods
(5) Clearing up

(1) Lack of proper Supervision at the point of Receiving Food from

Supplier:
At this stage money can be lost through a number of channels.
(a) Improper Weight of Commodities: Especially those which are
loosely packed, perishables such as fruits, vegetables, meats etc.
cereals and pulses in bags not checked for holes in them can also affect
weight.
(b) Improper Weighing Equipment: At the delivery point can affect
the weights of food received, the mistake made in the recording of
weights. Any extra weight recorded would push-up the price of each
portion obtained from the food and vice-versa.
(c) Variable Quality of Foods received: The quality of a food
directly affects the number of portions obtained from a standard weight
of the item. For example, apples of different sizes with irregular surface
can lead to loss of a lot of money through excessive peelings, trimmings
and so on. Similarly, vegetables like cauliflower with a loss portion of
stem give less portions on the plate and therefore cost more per portion.
Also cereals, pulses, legumes, etc. if adulterated with inedible material,
or packed without cleaning can lead to losses in portion sizes.
(d) Pilferage at Delivery Point: At this stage it is much easier to
pilfer without actually taking out the food from the establishment. Cases
have been known in which the supplier directly delivers to the staff
outside the establishments, while the invoices are routinely recorded in
the book of the establishment. On checking, the number of packs are in
order, count perhaps each one slightly lighter than they should be. Minor
differences in weights are generally undetected by an observer,
especially when very large quantities are delivered.
(e) Inaccurate ordering: Leading to longer storage time and losses
through drying and spoilage.
(f) Over charging by supplier or clerical errors.

(2) Inefficient Menu Planning: Unplanned or poorly planned menu for

customers requirement can cause unnecessary wastage of ingredients, and
there by push of food cost subsequently loosing profit margins. This can
happen when:
(a) Menus are planned without the use of standard yield recipes. They
can be financially disastrous, because the number of portions obtained
are not predictable each time a dish is prepared.
(b) The menu planner’s own tests rather than those of the customers are
projected on the menus which land up with dishes unsold.

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(c) Portion number for each dish on the menu are improperly2022-2023
forecasted.
They can lead to one dish being completely sold out in the middle of
service time while others remain unsold.
(d) There is an imbalance of high- and low-priced dishes on the menu,
food cost increase lowering the margin of profit.
(e) There is little or no flexibility in menu plans to incorporate left over
foods, food costs increase unnecessarily.
(f) An item is used for a dish for which items not ment originally it can
push up food costs. For example, an expensive cut of meat used for
mince; or a dessert (table) fruit used in fruit salads or food cooked
desserts.
(g) Dishes are placed on the menu only because they can be easily
prepared by the staff, without attention to quality or customer choice and
acceptability.

(3) Kitchen Production: The tools, equipment and techniques used in the
cutting, trimming, and cooking of food can make or break the establishment
in items of profitability. Losses in this area need for greater control than any
others because they can occur in not so obvious ways like:
(a) Poor peeling or hemming, affect the number of portions obtained for
a unit purchase of food.
(b) The Suitable of cutting and chopping vegetables or meat for each
dish will affect the volume of the prepared dish and hence its selling
price. For example, cutting vegetable too finely when large pieces would
be Just as effective for its presentation, would reduce the volume of the
prepared dish, unnecessarily reducing the number of portions for
service.
(c) Using improper cooking methods leading to excessive weight losses
and reduced selling portions.
(d) The art of garnishing completed dish to make them attractive to the
customer means receiving cost quicker through more sales. A very
tasting dish presented in a sloppy manner can put off customer quite
easily.
(e) Picking of food or excessive indulgence on the pretext of tasting it,
before dishing out for service can be a major cause for increasing food
costs. It all the staff handling food costs. If all the staff handling food
standard picking every tastable ingredient at all stages of production, it
is not hard to imagine the effect on the customer and the cash box.

(4) Service of Prepared Food: Food cost is increased in this area through:
(a) Improper availability of portioning equipment.
(b) Lack of training in portioning correctly at the service point.
(c) Insufficient temperature control in holding equipment leading to
unnecessary losses in portions through the evaporation of moisture and
through shrinkage.
(d) Picking of foods and pilferage when service is slack.

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(e) Method of service also affects the portions on the customer’s place,
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and also the loss in spoilage while serving.

(5) Clearing Up: Food can be lost if clearing up methods are not planned
properly. Food from serving dishes not used up completely can be utilized
to staff. This can only be done if completely separate sets people clear
service dishes. A food cost control system basically requires the use of
standard recipes; Purchase specifications operating policies and
procedures which help to control the above-mentioned losses at every stage
of handling; preparation and service. Policies for customers, cash control
and security also play in important role in controlling cost.

f. Food Sales Control

The Payment for food may be made in many forms such as cash, foreign
currency, credit cards, cheques, traveler’s cheques, luncheon vouchers and
signed bills. The sales summary report prepared at the end of the day
helped produce the total cash and credit sales made on that day. It helped
compare sales of each day with that of the same day in the previous week.
The sales in F & B are documents by writing it down by the head chef.
Through Property Management System (PMS) is used and all orders are
typed, the guests can also directly order with the help of a tablet. Which
shows a brief description of the dish in the menu? The order is then sent to
the Kitchen this is known as KOT (Kitchen Order Ticket). Whenever there is
a sale of a particular dish from an outlet, the same should tally with the
number of dishes served from the kitchen. The KOT of a dish should tally
with the dish sold for a period of a day.

g. Standard Yield
Standard yield is the expected amount of usable product that can be
produced from a given set of inputs. It is calculated by dividing the total
weight of usable product by the total weight of raw materials used.
The standard yield of a particular food product is the usable part of that
product after initial preparation, or the edible part of the product after
preparation and cooking; for example, the standard yield for a whole fillet of
beef is the number of fillet steaks that will be available for cooking and final
sale to the customer after the fillet is trimmed and any unwanted meat
removed. Any usable trimmed meat should be considered with the standard
yield.

The development of standard yields by an establishment has a number of

advantages:
➢ Standard yields determine the most appropriate and advantageous
size/weight to buy a particular commodity in.
➢ They assist in determining the raw material requirements for the
production level anticipated from the production forecasts, and

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therefore act as an aid in the purchasing of the establishment’s
2022-2023food
stuffs.
➢ They act as a „double check‟ for the purchasing department. Should
an unsatisfactory delivery of meat, for example, be made to an
establishment and is unnoticed at the receiving bay, this delivery is
subject to a second “checking‟ procedure in the kitchen where the
meat should yield a standard number of portions.
➢ They act as a safeguard against pilferage or wastage occurring in the
kitchen as the actual and potential yields can be compared and this
acts as a measurement of the efficiency of the production
department.
➢ Finally, they are an aid to accurate food costing for particular dishes
offered on an establishment’s menu, as the cost factor can be
established.

Usually yield tests are performed on food bought. As purchased and need
to convert to ready to cook. Items received already pre-portioned do not
need any yield tests. Some foods you received ready to cook might need
yield tests.

Yield tests tell you:

1. Yield of kgs, liters, gms., portion and so on.
2. Cost per kg., liter, gm., portion and so on. Yield tests are pre-cost
technique because before you serve an item you determine its cost.
Yield tests are pre-control technique because you know the cost of the
item and you can adjust the menu selling price before serving the item.
Many of the items you purchase are not immediately ready to use when
you receive them. They have to have pre-preparation work done. This
adds to the cost of the item because it will cost you some things to have
your employees trim, peel or do some work on the items after you
receive them.

h. Standard Portion Sizes

Standard portion size is the amount of food that is considered to be a
single serving. It is typically measured in terms of weight, volume, or number
of units. Standard portion sizes are important for a number of reasons.
The Standard portion size in the quantity of food that would be served to
the guest each time the food is ordered. It is also the fixed quantity of food
fixed by the management for the selling price mentioned in the menu card.
The price is usually fixed in consultation between the head of the
departments of service and kitchen. Each item in the menu can be quantified
by three processes either by weight, volume or by the numbers or count.

• Weight: This is usually expressed in grams and is mainly used for

portioning of meat, fish, and vegetables.

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• Volume: The measure used for portioning liquids is expressed2022-2023 in

liters or milliliter and is mainly used in soups, Juices sauces and milk.
• Number of Count: It is a measure for portioning items such as eggs,
bacon, and prawns.

Advantages of Portioning Food:

✓ Ensure consistency: The standard portion reduces customer
displeasure as it is the cause of loss of customers as well as sales.
✓ Personnel Harmony: The standard portion also reduces the rift
which may happen between the service personnel and the chefs as
regards the portion size.
✓ Control Cost: The standard portion also helps to reduce excessive
cost as the cost of ingredients varies with the quantity served is more
than the designated portion. Since the selling prices does not change
with that portion served the food cost increases.

Equipment used in portioning Food:

• Scoops: There are various sizes of scoops for different portions,
most commonly used for portioning ice-creams.
• Ladles: They also come in various size used for portioning soups,
sauces, and gravies.
• Portion Scales: They help to portion vegetables meat, fish and
poultry which are weighed and portioned.
• Measuring Cups: They come in various capacities, usually used for
portioning liquids. Chopped vegetables and shredded cheese can
also be measured with these cups.

i. Standard Recipes
A recipe can be defined as a written or a printed list of ingredients and
quantities of the ingredients with the method or procedure by which the dish
has to be prepared. A standard recipe is prepared by each establishment so
that when preparing the food, the chef prepares the dishes with the same
ingredients, quantity, and method. It helps maintain the quality of the food,
retain the taste and appearance, and ensure customer acceptance. It may
also include the cost of ingredients, which will add up to price the cost of the
dish and its nutritional value. Nowadays, due to dietary concerns, some
guests may want to know the ingredients with their nutritional value for a
particular dish. Sometimes, even cooking time and temperature are also
mentioned and finalized on testing. A photograph of the final dish is also
included in the form so that the chefs preparing the dish can refer to it and
present it uniformly. The standard recipe may be in a card from displayed in
preparation area or in laminated plastic to that they are durable.
Points to Remember for preprinting Standard Recipe
• Gather all the necessary information. This includes the ingredients,
quantities, instructions, and any other relevant information.

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• Make sure the information is accurate and up-to-date. This2022-2023

will help to
ensure that the recipes are consistent and that customers receive the
same quality of food each time they order.
• Use clear and concise language. The instructions should be easy to
understand and follow, even for inexperienced cooks.
• Use standard measurements. This will help to ensure that the recipes
are consistent and that customers receive the same amount of food each
time they order.
• Use a consistent format. This will make it easier for employees to find
the information they need and to follow the instructions.
• Proofread the recipes carefully. This will help to catch any errors or
omissions.
• Get approval from the appropriate people. This may include the chef, the
kitchen manager, or the owner.
Advantages of Standard Recipes
✓ Consistency: Standard recipes help to ensure that food is prepared
consistently, regardless of who is doing the cooking. This is important for
maintaining the quality of food and for ensuring that customers receive
the same experience each time they order.
✓ Efficiency: Standard recipes can help to improve kitchen efficiency by
reducing the amount of time that is spent on planning and preparing
food. This can free up time for employees to focus on other tasks, such
as customer service.
✓ Cost Savings: Standard recipes can help to reduce food costs by
minimizing waste and ensuring that ingredients are used efficiently. This
can save businesses money in the long run.
✓ Compliance: Standard recipes can help businesses to comply with food
safety regulations. By following the recipes carefully, businesses can
ensure that food is safe to eat.
✓ Training: Standard recipes can be used to train new employees on how
to prepare food. This can help to ensure that new employees are able to
produce consistent, high-quality food.
✓ Communication: Standard recipes can help to improve communication
between kitchen staff and other employees. By having a common
reference point for recipes, everyone involved in the foodservice
operation can be on the same page.

Disadvantages of Standard Recipes

❖ Lack of creativity: Standard recipes can sometimes stifle creativity in
the kitchen. If chefs are always following the same recipes, they may not
be able to experiment with new flavors or techniques.
❖ Inflexibility: Standard recipes can also be inflexible, making it difficult to
adapt to changes in ingredients or customer demand. For example, if a

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restaurant runs out of a key ingredient, they may not be able to make
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their signature dish without making significant changes to the recipe.
❖ Increased workload: Creating and maintaining standard recipes can be
a time-consuming process. Restaurants may need to hire additional staff
or invest in specialized software to manage their recipes effectively.
❖ Resistance from employees: Some employees may resist using
standard recipes, preferring to rely on their own experience and intuition.
This can make it difficult to implement and enforce standard recipes
consistently.
❖ Loss of individuality: Standard recipes can sometimes make food
taste bland or uninspired. If all of the dishes on a restaurant's menu taste
the same, customers may eventually lose interest.

Content of a Standard Recipe

1. Name of the recipe: This should be a clear and concise name that
accurately describes the dish.
2. Yield: This is the number of servings that the recipe will produce.
3. Ingredients: This is a list of all of the ingredients that are needed to
make the dish. The ingredients should be listed in the order that they are
used in the recipe.
4. Quantities: This is the amount of each ingredient that is needed. The
quantities should be given in standard measurements, such as cups,
teaspoons, and ounces.
5. Instructions: This is a step-by-step guide on how to prepare the dish.
The instructions should be clear and concise, and they should be written
in a way that is easy to follow.
6. Notes: This is a section for any additional information that is not included
in the other sections of the recipe. This could include information about
substitutions, storage, or serving suggestions.

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2022-2023

IV. Glossary
Bin Card: It is an index card which is used for recording additions and
deletions from the product’s inventory.
Cost: The amount of expenditure incurred on or attributable to a given thing.
Fixed Cost: The cost which remains fixed irrespective to quantum of output
over a certain capacity of the organization.
Purchasing: It is a procurement function concerned with search, selection,
purchase, receipt, storage, and final use of commodity in accordance with the
catering policy of the establishment.
Receiving: Process of examining shipments to determine if they should be
accepted or refused.
Standard Recipe: A standard of recipe is prepared by every establishment so
that each chef/bartenders prepares the dish/drink with the same ingredients.
Variable Cost: The cost which tends to vary indirect proportion to change in
the volume of output or turnover.

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Reference /Bibliography 2022-2023

• Dittmer, R.P. (2003) Principles of Food, Beverage, and Labour Cost

Controls, 7th edn. John Wiley & Sons, New York.
• Miller, E.J., Hayes, K.D. and Dopson, R.L. (2002) Food and Beverage
Cost Control, 2nd edn. John Wiley & Sons, New York.
• Bansal, K.T. (2016) Food and Beverage Operations to Management.
I.K. International Publishing House Pvt. Ltd, New Delhi.
• Seal, P.P. (2017) Food and Beverage Management. Oxford University
Press, New Delhi.
• Cousins, J., Foskett, D. and Gillespie, C. (1995) Food and Beverage
Management, 2nd edn. Pearson Education, New Delhi.

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