UNIT-4

FOOD & PURCHASING CONTROL

Responsibility for Purchasing

The responsibility of purchasing can be delegate to anyone in the foodservice operation

depending on organizational structure and management policies.

Control Process and Purchasing

Four steps in the control process apply here:

1. Requiring that standards and standard procedures be established

2. That employees be trained to follow those standards and standard procedures

3. That employee out-put be monitored and compared to established standards

4. Remedial action be taken as needed

Perishable and Non-perishable

Perishable are those items, typically fresh foods, those have a comparatively short useful life
after they have been received. They should be purchased for immediate use only as they
deteriorate quickly.

Non-perishable are those food items that have a longer shelf life. They are often referred to as
groceries or staple. They may be stored in the containers in which they are received, stored on
shelf at room temperature for weeks or months. They do not deteriorate quickly.

Developing Standards & Standard Procedure

Establishing control over purchasing ensure a continuing supply of sufficient quantities of the
necessary foods, with each of quality appropriate to its intended use and purchase at the most
favorable price.

Standard must be developed for:

1. The quality of food purchased

2. The quantity of food purchased

3. The price at which food is purchased

Establishing Quality Standards

• It is important first to determine which perishable & non-perishable food is required in

order to produce products of consistent quality.

• Thus it is important to draw up the list of all food items to be purchased, including those
specific and distinctive characteristic that best describe the desired quality of each in
written description also known as standard purchase specifications.

• It is usually base on federal grading or common market grading.

Through Standard Purchasing Specification:

1. To determine exact requirement in advance for any products

2. To purchase according to specification to prepare several different items on the

menu.

3. They eliminate misunderstanding

4. To have standard competitive bidding

5. They eliminate for detail verbal description

6. To facilitate checking food as it is received.

Establishing Quantity Standards

• Quantity standard for purchasing are subjected to continual review and revision, often on
a daily basis.

• Perishable Item .The correct amount must be purchased to avoid wastage.

• A basic requirement of the purchasing routine is to take daily inventory of perishable.

• The routine requires that determinations be made of anticipate total needs for each item,
base on future menus and often on experience as well.

• Non-perishable items does not present the problem of rapid deterioration, the do
represent considerable amount of money invested in material in storage. The goal here is
to avoid excessive quantities on hand. Through proper planning.
 • The ways to maintain inventories of non perishables at appropriate levels, most are
variations on two basic methods:

1. Periodic order method

A method for ordering food or beverages based on fixed order dates and variable order
quantities. The calculation of the amount of each item to order is comparatively simple:

Amount required for the upcoming period-Amount presently on hand+ Amount wanted
on hand at the end of the period to last until the next delivery =Amount to order

2. Perpetual inventory method:

• orders for non perishables are placed every two weeks, one of the items ordered is
crushed tomatoes, purchased in cans, packed 6 cans to a case. The item is used at the rate
of 7 cans per week, and delivery normally takes five days from the date an order is
placed. If the steward in this establishment found 9 cans on the shelf, anticipated a use of
14 cans during the upcoming period of approximately two weeks, and wanted 10 cans on
hand at the end of that period, the calculation would be:

14 cans required - 9 cans on hand +10 cans to be left at the end of the period
(desired ending inventory) = 15 cans to be ordered on this date

Perpetual Inventory Method

1. To ensure that quantity purchase are sufficient not excessive

2. To provide effective control on stored item for the future.

The reorder point is quite simply the number of units to which the supply on hand should
decrease before additional orders are placed.

The Par Stock means simply the maximum quantity of a given item that should be on hand.
This helps to

1. Storage space

2. Limits on total value of inventory

3. Desired frequency of ordering

4. Usage

5. Purveyors’ minimum order requirements

FOOD RECEIVING CONTROL
The primary objective of receiving control is to verify that quantities, qualities and price of food
delivered conform to orders placed.

The person that is usually responsible for this job is given the job title as “receiving clerk’.

ESTABLISHING STANDARD FOR RECEIVING

Established standards to govern the receiving process are:

• The quantity delivered should be the same as the quantity listed on order forms and also
should be identical as the quantity listed on the invoice or delivery bill.

• The quality of item delivered should conform to the establishment’s standard purchase
specification for that item

• The prices on the invoice should be the same as those stated on the order form

Example of Standard procedure for receiving

1. Verify that the quantity, quality and price for each item delivered conforms exactly to the
order place

2. Acknowledge that quantity, quality and price have been verified by stamping the invoice
with the rubber invoice stamp provided for that purpose

3. List all invoices for foods delivered on a given day on the Receiving Clerk’s Daily
Report for that day, and complete the report as required, or enter appropriate information
directly into a computer terminal

4. Forward complete paperwork to proper personnel

5. Move food to appropriate storage areas.

INVOICE STAMP: Rubber stamp used by a receiver to overprint a small form on an invoice
for the purpose of recording the data on which goods were received, as well as the signature of
the several individuals verifying the accuracy of data on the invoice.

1. Verification of the date on which food was received

2. The signature of the clerk receiving the food who vouches for the accuracy of quantity,
quality and price.

3. The steward’s signature, indicating that the steward knows the food has been delivered

4. The food controller’s verification of the arithmetical accuracy of the bill.

 5. Signatory approval of the bill for payment by an authorized individual before a check is
drawn.

FOOD STORING & ISSUING CONTROL

STORING CONTROL:

ESTABLISHING STANDARDS AND STANDARD PROCEDURES FOR STORING

In general, the standard established for storing food should address five principal
concerns:

1. Condition of facilities and equipment

2. Arrangement of Food

3. Security of Storage areas

4. Location of Storage Facilities

5. Dating and pricing of stored food

ISSUING CONTROL:

ESTABLISHING STANDARDS AND STANDARD PROCEDURES FOR ISSUING

There are two elements in the issuing process:

(1) The physical movement of foods from storage facilities to food preparation areas

Physical Movement of Food from storage facilities is the movement of food from the storage
facilities to the preparation area. Practice for doing this varies from one establishment to other
establishment due to the management policies and procedures and priority.

(2) The record keeping associated with determining the cost of the food issued.

DIRECT: Direct is in-charge to food cost as they are received directly on assumption that these
perishable item have been purchased for immediate use. Figures in “FOOD DIRECT” column in
Receiving Clerk’s Daily Report will be calculated directly into the particular day food cost.

STORES: The food category known as stores was previously described as consisting of staples.
When purchased, these foods are considered part of inventory until issued for use and are not
included in cost figures until they are issued. Therefore, it follows that records of issues must be
kept in order to determine the cost of stores. For control purposes, a system must be established
to ensure that no stores are issued unless kitchen personnel submit lists of the items and
quantities needed.

The Requisition is a form filled in by a member of the kitchen staff. It lists the items and
quantities of stores that the kitchen staff needs for the current day’s production. Each requisition
should be reviewed by the chef, who should check to see that all required items are listed and
that the quantity listed for each is accurate. If the list of items and quantities is correct, the chef
signs and thus approves the requisition.

FOOD PRODUCTION CONTROL

1. PORTIONS
 The standards and standard procedures for production control are designed to ensure that
all portions of any given item conform to management ’ s plans for that item and that, as
far as possible, each portion of any given item is identical to all other portions of the
same item.

 Portion for any given menu should be identical in 4 respect.

1. Ingredients

2. Proportions of ingredients

3. Production methods

4. Quantity

 To achieved the 4 respected areas we need to have

1. Standard Portion Size

2. Standard Recipe

3. Standard Portion Cost

STANDARD PORTION SIZE

 One of the most important standards that any foodservice operation must establish is the
standard portion size, defined as the quantity of any item that is to be served each time
that item is ordered. In effect, the standard portion size for any item is the fixed quantity
of a given menu item, that management intends to give each customer in return for the
fixed selling price identified in the menu. It is possible and desirable for management to
 establish these fixed quantities in very clear terms. Every item on a menu can be
quantified in one of three ways: by weight, by volume, or by count.

Every item on a menu can be quantified in one of the three way:

 By Weight: Can be expresses in ounce or grams used to measure portion sizes for a
number of menu items.

 By Volume: Is used as the measure for portion of many menu items usually that of liquid
in nature, Milk, soup, juices of coffees

 By Count: Used to identify portion size, such as sausage, eggs and shrimps

Many devices are available to help foodservice operators standardize portion sizes. Among the
more common are the aforementioned scoops and slotted spoons, as well as ladles, portion
scales, and measuring cups. Even the number scale or dial on a slicing machine, designed to
regulate the thickness of slices, can aid in standardizing portion size: A manager may stipulate a
particular number of slices of an item on a sandwich and then direct that the item be sliced with
the dial at a particular setting

Advantages for practicing Standard Portion Size

 It helps reduce customer discontent as the customer cannot compare his or her portion
unfavorably with that of other customer and feel dissatisfied or cheated.

 It helps to eliminate animosity of miscommunication between the kitchen staff and the
server over the portion size that lead to delay in the serving of food.

 It helps to eliminate excessive costs of over portioned menu.

 Price on the menu is usually fixed, thus it will also reflect the portion size of the menu. If
the portion size is constantly change then it will dissatisfied the customer and server.

STANDARD RECIPE

 Another important production standard is the recipe. A recipe is a list of the ingredients
and the quantities of those ingredients needed to produce a particular item, along with a
procedure or method to follow. A standard recipe is the recipe that has been designated
the correct one to use in a given establishment.

 Standard recipes help to ensure that the quality of any item will be the same each time the
item is produced. They also help to establish consistency of taste, appearance, and
customer acceptance.

 The same ingredients are used in the correct proportions and the same procedure is
followed, the results should be nearly identical each time the standard recipe is used, even
 if different people are doing the work. In addition, returning customers will be more
likely to receive items of identical quality.

 Standard recipes are also very important to food control. Without standard recipes, costs
cannot be controlled effectively. If a menu item is produced by different met
methods, with
different ingredients, and in different proportions each time it is made, costs will be
different each time any given quantity is produced.
produced

STANDARD PORTION COST

 A standard portion cost can be calculated for every item on every menu, provided th that the
ingredients, proportions, production methods, and portion sizes have been standardized as
previously discussed. In general, calculating standard portion cost merely requires that
one determine the cost of each ingredient used to produce a quantity of of a given menu
item, add the costs of the individual ingredients to arrive at a total, and then divide the
total by the number of portions produced.

 Standard portion cost is defined as the dollar amount that a standard portion should cost,
given the standards
rds and standard procedures for its production. The standard portion cost
for a given menu item can be viewed as a budget for the production of one portion of that
item. There are several reasons for determining standard portion costs. The most obvious
is that one should have a reasonably clear idea of the cost of a menu item before
establishing a menu sales price for that item.
item

STANDARD YIELD

 Yield
ield factor is defined as the percent of a whole purchase unit of
of meat, poultry or fish
that is available for portioning after any required in-house
in house processing has been
completed.

 Quantity = Number of portions X portion size (as a decimal) /Yield percentage

 UNIT-5
BEVERAGE PRODUCTION CONTROL
• To ensure that all drinks are prepared accordingly to management’s specifications

• To guard against excessive costs that can develop in the production process

Establishing Standards and Standard procedures for production

 Standard must be established for the:

 Quantity of the ingredients used

 Proportion of the ingredients used

 Drink sizes

 To have some reasonable assurance that a drink will meet expectations each time it is
ordered.

 If drinks are served accordingly to the formula and in standard portion, then the cost for
each portion to sales should be the same.

Establishing Quantity Standard and Standard Procedures

Devices for Measuring Standard Quantities

 Four measuring devices are commonly used by bartenders:

 Shot Glasses (Plain and lined)

 Jiggers (Double ended stainless steel Measuring device that resembles the shot
glass)

 The pourer (Fitted on top of a bottle)

 The automated Dispenser (predetermined measures of liquor)

 Free pour from own judgment or eyesight

Establishing Quality Standards and Standard Procedures

 Standard Recipes

 Establishing Standard Portion Cost

 Straight Drinks (formula)

  Mixed Drinks and Cocktails (Detail Recipe)

Controlling Revenue

Possible control of problems

 Working with the cash drawer open

 Under-ringing sales

 Overcharging customer

 Undercharging customer

 Over pouring

 Under pouring

 Diluting bottle contents

 Bringing one’s own bottle into the bar

 Charging for drinks not served

 Drinking on the job

Beverage Sales Monitoring

 The Cost Approach

 Cost Percentage Methods

 Monthly Calculation

 Daily Cost Calculation

 Cost Calculation by Category

 Standard Cost Method (Actual – Standard Cost)

 The Liquid Measure Approach

 Ounce-Control Method (Quantity stock taking daily)

 The Sales Value Approach

 Actual Sales Record (Recipe Detail Comparison)

 Average Sales Value Method (Per-bottle value)

  Standard Deviation Method (Statistical EDP)

 Inventory Turnover

Monitoring Production Performance and Taking Corrective Action

 A manager can personally observe bar operations on a regular basis

 A designated employee, such as a head bartender, can observe others working at the bar
and report unacceptable performance and problems to management

 Individual unknown to the bartenders can be hired to patronize the bar, observe the
employees, not problems and report to management

 Closed-circuit television systems can be installed to permit observation of bartenders and

bar operations from some remote location.