PPT F&B Control=introduction about food control

College of Business & Economics
Department of Tourism & Hotel Management
Course Name: Food & Beverage Control
Course Code: ToHM4057
Credit Hour: 4
ECTS: 7

Chapter-one
An over view of food and beverage control.
Introduction:
Food and beverage control may be defined as
the guidance and regulation of costs and
revenue of operating the catering activity in
hotels, restaurants, hospitals, schools and other
establishments.

Cont,d…
Control is a process used by managers to
direct, regulate, and restrain the actions
of people so that the established goals
of an enterprise may be achieved.
It works best when it is used with other
management process, such as
planning, organizing, directing, and
evaluating”.
The main purpose of any business is to make
profit. Profit not only earned by sales,
but also can be achieved by cost control.

 In hotels food and beverage
sales account 1/3 or half of the
total revenue.
 In restaurants food and
beverage sales are the main/only
source of revenue.
 As more attention should paid to
the control of costs to ensure
the survival of each business unit.

Control
🞂 It is an inherent(essential) function in
managing food and beverage operations.
🞂 Needed in all organizations to
ensurethat plans are carried out and desired
results are achieved.
Consists of 4 steps
1. Setting standards for performance(goals)
of activities:
*Standard is level of performance to be attained.

Expressed in terms of:
 Product quality
 Sales volume
 Expenses incurred
 Profit earned
 Customer complaint etc
2. Measuring performance against standards:
 Answer the question how well we are doing?

3. Comparison and Analysis:
 Once the standard or goal has been established
and actual performance is determined, it is
possible to compare the two and a manager can
find out the variance.
4. Taking corrective action as needed:
 Is getting things on the track-So that standards are met.
 If they can’t be -perhaps the standard is unrealistic and
needs to be changed and setting a new standard which
could be achievable.

Advantages of FB Control
🞂 Food and beverage control is crucial for businesses
i
n the hospitality and restaurant industry. Here are
some key advantages:
1. Cost Control
🞂 Reduces food and beverage wastage
🞂 Prevents theft and pilferage
2. Profit Maximization
🞂 Ensures pricing is based on accurate cost calculations
🞂 Improves profit margins by reducing unnecessary
expenses
🞂 Helps in identifying high-profit items for promotion

3. Quality Assurance
🞂 Maintains consistency in food and beverage offerings
🞂 Ensures compliance with hygiene and safety
standards
🞂 Reduces chances of serving expired.
4. Inventory Management
🞂 Prevents stock shortages and overstocking
🞂 Helps track ingredient usage for efficient purchasing
5. Better Decision-Making
🞂 Provides accurate data for menu planning
and pricing strategies
🞂 Helps identify trends and customer preferences
🞂 Supports budget forecasting and financial planning

6. Enhances Customer Satisfaction
🞂
Ensures customers receive consistent quality and
portion sizes
🞂 Reduces delays in service due to stock
unavailability
🞂 Helps maintain a good reputation and
customer loyalty
7. Compliance with Regulations
🞂
Ensures adherence to food safety laws and industry
standards
🞂
Helps in record-keeping for health inspections and
audits
🞂
Reduces legal risks associated with food safety
violations

Limitations of a control system
1. A control system by itself will not cure or prevent
problems occurring.
 A control system can only identify problem areas and
trends in the business.
 The system cannot automatically correct such problem
areas.
2. A control system require constant
management supervision to ensure that it functions
efficiently.
3. Needs management action- evaluating information
from the control system and act up on it-
Corrective and preventive.

High implementation costs: installing and
maintaining control systems can be expensive,
especially for small business.
Human error: despite automation, mistakes in
data entry, inventory tracking, etc.
Rigidity: some systems may lack flexibility,
making it difficult to adapt menu changes, special
events or unexpected demand flu actuations.

Staff resistance: employee may resist new
control measures due to lack of training, fear of
monitoring/increased work load.
Data inaccuracy: if inventory counts, wastage
records, or sale data are not updated correctly, the
system may provide misleading reports.

Limited adaptability to market changes: rapid
shifts in food trends, pricing, or supply
chain disruptions may not be effectively
accounted for in the system.
Dependence on technology: system failures,
power outages, or software glitches can disrupt
operations, leading to financial losses.
Time consuming process: regular audits, stock
counts, and compliance checks can be labor
intensive and take time away from customer
service.

Security risks: digital control systems are
vulnerable to hacking, data breaches, or
employee fraud if not properly secured.
Overemphasis on cost reduction: strict
control systems may prioritize cost cutting
over food quality, customer satisfaction, and
staff morale.

1.3. The objectives of food and beverage control
1. Analysis of income and expenditure
 Analysis of income
🞂 Volume of food and beverage sales
🞂 Sales mix-is a calculation that determines the
proportion of each product a business sells relative to
total sales.
🞂 Spending power of customers,
🞂 Number of customers served etc.
 Cost analysis
🞂 Labor cost
🞂 Food cost, beverage cost
etc

The performance of each outlet can be expressed in terms
of:
 Gross profit = sales –materials
 Net margin = gross profit –wages
 Net profit = gross profit –wages and all
overhead costs/ rent, capital equipment,
insurance/

2. Establishment and maintenance of standards
 Establishing basis for operation standards(setting SOPs
(Standard Operational Procedures) which should
be readily available to all staff for reference.
 Enabling Staffs to know standards to be achieved
 To measure employee’s performance
 It can be through observation, analysis, customer
comments- re-establishing standards.

3. Pricing
 Providing sound basis for menu pricing, based on:
 Food and beverage cost
 Establishment cost
 Market considerations e.g.
🞂 price charged by competitors
🞂 price accepted by market
🞂 customers spending power etc.

4. Prevention of waste
Control ensure that current results are in
accordance with the
predetermined objectives of the business.
Invariably such objectives are expressed in
terms of targets such as food sales,
beverage sales, gross profit
margins, cost ceilings(levels) etc.

 If such targets are to be
achieved, all possible forms of
waste must be eliminated.
Like poor preparation
Over production
Failure to use standard recipes etc.

5. Prevention of fraud
 Preventing or at least restricting possible areas of fraud
by staffs and customers
 Customers
 Deliberately walking with out paying
 Disputing no or the number of (drinks)
 Unjustifiably claiming the quality of the food/refusing
to pay/
 Making payments by stolen cheques or credit
cards.
 Staffs
 Overcharging
 Undercharging
 Stealing of food, drinks and cash

6. Data for Management report
A system of F&B control has an important
function in the provision of data (accurate
up- to-date information) for periodical
reports (daily, weekly and monthly)
on current operation.
This information used to provide a complete
analysis of performance for each outlet
of an establishment for comparison
with set standards.
The manager is like a judge!!!

1.3. Special problems of food and beverage control
 F & B control is more difficult than control of materials
in other industries. The main reasons for this are:
1. The perishability of the product
 Food is perishable both as raw material and in the
form of
prepared meal (has limited life).
 It 2 problems: when buying /soft fruits, salads
and certain vegetables/ and preparation.

So, the caterer need to ensure that
 Buying the correct quality and quantity based
on
estimated demand.
 There should be correctly stored and processed.
*Beverages are not as perishable as
food – easier for control also have longer shelf
life.

2. Business volume unpredictability
 Sales are unstable (changing hour to hour, day to day,
season to season )
 This creates difficulty (problem) in relation to
quantities of commodities to be purchased,
prepared, and staffing required.
 Thus, an effective system of F&B control will include
some methods of volume forecasting to prevent
both over and under-preparation of food in
relation to current demand.

3. Menu mix unpredictability /sales mix
 It is impossible to be 100% sure about the customer’s
selection from the menu item choices.
 Predicting menu items preference on top of
customer volume can be challenge.
 Shifts of emphasis (this) has a control problems
relating to purchasing, preparation of meals,
pricing etc.

 In case of beverages change in sales mix do not
present nearly the same sort of problems as of foods.
 To be competitive and satisfy a particular market,
caterers must often offer a wide choice of menu
items to the customers.
 To be cost effective there should be effective volume
forecasting.

4. The short cycle of catering/F&B/ operations
🞂 The speed of the catering o
p
e
r
a
t
i
o
n
allowslittle time for many control tasks.
🞂 It is common that items ordered one day are received
, processed and sold same or next day.
🞂
Daily /weekly cost reporting is necessary in majority o
f
catering establishments.

5. Departmentalization
 Many food and beverage operations have
several
production and service departments,
 offering different products and
 operating under different policies.

Cont,d…
 The larger the number of selling outlets, the
more arduous (hard) the problem of control.
 Produce separate trading results for each of
the production and selling activities.
 Recording cellar issues in a manner which will permit
the compilation of separate trading results for
each outlet.

1.4. The Fundamentals of Control
🞂 Effective control systems and procedures
consist of three broad phases:
1. Planning,
2. Operational and
3. Post-Operational (management
control after the operation has taken
place).

1. The planning phase
🞂 This phase deals with financial,
m
a
r
k
e
t
i
n
g and
catering policies of the establishment.
🞂
There is no effective catering operation without having
firstly defined the basic policies.
🞂 Policies are pre-determined guidelines, laid down
b
y the senior management according to the goals of
the catering establishment to achieve:

Cont,d…
The market or segment of the
market
that is being aimed
Service excellence,
Quality control,
Customer satisfaction
Level of profitability,

🞂 Policies can be written in
large organizations – might be oral in small
organizations.
There are three basic policies which need to
be considered:
A. The financial policy will determine
 level of profitability,
 subsidy or cost limits to be expected from the business
as a whole ,each unit, and departments .

B. The marketing policy will identify
 The broad market the operation is intended to
serve and
 The particular segment(s) of the market upon which
it intends to concentrate.
 Developing the marketing mix (4ps/7ps)
 Designing the promotion mix (ad, sp, ps, pr)
 Building the corporate image by meeting
customer's
immediate and future expectations or requirements.

● it includes:
 National identity- to achieve a better national identity
for all units by corporate design, and by
meeting consumer expectations of what a ‘
popular restaurant ’ concept should be.
 Customer- the customer profile
 Tourist: business and leisure person,
 Spending power
 Shopper
 Aged, twenty-five years or more, etc

 Market share- to achieve, maintain
or increase the % of ‘ our ’ market.
 Turnover- sales volume to be
increased by x % on previous year.
 Profitability- profit to be increased
by each unit by y % on previous year.

 Average Spending Power(ASP) per customer to be
increased by z % – to achieve a new ASP of not
less than £ n (100,150,200).
 Product- the product to be maintained at a consistently
high standard.
 Customer satisfaction- the net result must be the
satisfaction of customers.
 We have to start with identification of the needs of our
customers. how?

C. The catering policy
 Which is normally evolved from the financial
and
marketing policies.
 It out lines the following concepts:
 Portion size, decor and atmosphere or ambience
 Customer Profile:
 CSP (high spending business executive or low
spending shopper), age group, sex, food
habits, frequency of visit, etc.

 Menu profile:
 Table d ’ hôte, à la carte, fast food or
traditional cuisine.
 The beverage provision necessary for the operation.
 The food quality standards , for example
🞂 Fresh
🞂 Frozen
🞂 Canned, etc.
 The method of buying , for example by
contract, quotation, cash and carry, etc.


Outlet profile:
Outlet type: Hotel, Resort or Lodge,
Restaurant etc.
Type and quality of service:
🞂 world class or local/traditional
🞂 cafeteria,
🞂 staffing, etc.
 Degree of comfort and décor , for example
 Square footage per customer,
 Type and style of décor, of chairs, tables, etc.

 Hours of operation , e.g.
🞂 twenty-four hours,
🞂 seven days a week;
🞂 12:00–15:00 and 18:00–22:00
hours,
🞂 Monday– Saturday, etc.

2. The operational phase
🞂 Deals with to be interpreted the established
standard procedures (policies) into the day-to-day
control activities (five main stages of the control
cycle).
1. Purchasing : There are five main points to be
considered.
Product testing- to identify as a result of a series
of taste panel evaluations the particular
products to be used.
Yield testing- to identify as a result of tests the
yield obtainable from all the major
commodities used.

 Purchase specifications- a specification is a concise
description in writing of the quality, size, weight,
etc. for a particular food or beverage item.
 Method of buying- by contract, quotation, cash and
carry, etc.
 Clerical procedures- it is necessary to determine
🞂 who originates,
🞂 authorized and places orders and
🞂 what documentation is required for control.

to be
2. Receiving : There are three main
points considered:
 Quantity inspection
 physically counting and weighing goods and
 checking that the quantity and size of
items in the
delivery matches the purchase order.
 Ifshortage in delivery – informing the
purchasing manager or a member of the
management.

 Quality inspection
 particularly important with perishable foods
 Check against purchase specification by senior chef.
 Clerical procedures –It includes the
 Acknowledgement of the receipt of acceptable
goods and
 Delivery person ’ s signature on a ‘ request for credit ’
 Note for returned goods and short deliveries.

3. Storing and issuing: There are four main points to
be considered:
 Stock records- it is necessary to decide what records
should be kept.
 Pricing of items/issues- the method of pricing of the
various types of items must be decided upon so
that there is consistency within the operation.

 Stocktaking- the points to be considered:
o The level of stock to be held,
o Rate of stock turnover,
o Dealing with discrepancies,
o Identification of slow-moving items, etc.
 Clerical procedures- documentation required
 Requisitions
 Record cards,
 Bin cards.
 Stocktaking reports, etc.

4. Preparing: There are three main points to
be considered:
 Volume forecasting- number of customers and what
items they will eat and drink on a specific day.
 Pre-costing- a method of controlling food
and
and
beverage costs in advance of the
preparation service stages.
 by preparing and using standard recipes
 by using portion control equipment, e.g.
ladles, scales, standard glassware, etc.

 Clerical procedures- what documentation is required
and is distribution and destination.
5. Selling:
 A checking system- this is necessary to keep control of
the number of covers sold and of the items sold.
E.g. Using waiter ’ s check system
 The control of cash- this is vitally important to ensure
that:
🞂 All items sold have been paid for and
🞂 The money is received or
🞂 Credit has been authorized

 Clerical procedures- these would be necessary
to control:
🞂 Items sold and
🞂 The money received or
🞂 Credit entitled, and
🞂
Would often include a restaurant checking system, meal
and sales analysis, etc.

3. The post operation
phase
 Has 3 main stages:
1. Food and beverage cost reporting :
 Very short cycle of production
 product perishability
 Variations in demand for the product -necessitate up-to-
date reporting at least weekly if not daily.

2. Assessment: F&B management team/manager
 Analysis of F&B reports – budget & previous actual
performance
3. Correction: by management
 Analysis of performance of units- problem
 A control system does not cure or prevent
problems occurring.

🞂 Planning
phase
🞂 Operational
phase
🞂 Post operation
phase
Financial
policy
F&B
operation
policy
Marketing
policy
Purchasing
Receiving
Storing & issuing
Preparing
Selling
Post operation control
Cost reporting
Assessment
Correction

1.5. The reality of control
 In reality no control system will be 100% efficient
for such basic reason:
 The material product variation (apart from purchased
beverages) very unlikely to be 100% consistent as
to quality or the final yield obtainable from it.
 The inefficiency/
inconsistency performance-
all the time-
standards exist.
of employees
if
operational
even

 The equipment used is also unlikely to work to the
level of 100% efficiency at all times, and this
could well affect the yield obtainable.
 The customers ’ choice of dishes can well be different
at times to some of the budgeted sales mix,
therefore affecting all forecasts.

PPT F&B Control=introduction about food control

PPT F&B Control=introduction about food control

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PPT F&B Control=introduction about food control