Professional foodservice managers are faced with a wide array of challenges on a daily basis. Controlling costs, setting budgets, and pricing goods are essential for success in any hospitality or culinary business. Food and Beverage Cost Control provides the tools required to maintain sales and cost histories, develop systems for monitoring current activities, and forecast future costs. This detailed yet reader-friendly guide helps students and professionals alike understand and apply practical techniques to effectively manage food and beverage costs.
Now in its seventh edition, this extensively revised and updated book examines the entire cycle of cost control, including purchasing, production, sales analysis, product costing, food cost formulas, and much more. Each chapter presents complex ideas in a clear, easy-to-understand style. Micro-case studies present students with real-world scenarios and problems, while step-by-step numerical examples highlight the arithmetic necessary to understand cost control-related concepts. Covering everything from food sanitation to service methods, this practical guide helps readers enhance their knowledge of the hospitality management industry and increase their professional self-confidence.
Preface vii Acknowledgments xiii Chapter 1: Managing Revenue and Expense 1 Professional Foodservice Manager 2 Profit: The Reward for Service 2 Getting Started 5 Understanding the Income (Profit and Loss) Statement 14 Understanding the Budget 18 Chapter 2: Creating Sales Forecasts 29 Importance of Forecasting Sales 30 Sales Histories 32 Maintaining Sales Histories 38 Sales Variances 39 Predicting Future Sales 41 Chapter 3: Purchasing and Receiving 57 Forecasting Food Sales 58 Forecasting Beverage Sales 60 Importance of Standardized Recipes 64 Purchasing Food 70 Purchasing Beverages 78 Purchase Orders 83 Receiving Food and Beverage Products 86 Chapter 4: Managing Inventory and Production 106 Product Storage 107 Storing Food Products 107 Storing Beverage Products 111 Inventory Control 114 Product Issuing and Restocking 122 Managing Food Production 132 Managing Beverage Production 141 Chapter 5: Monitoring Food and Beverage Product Costs 153 Cost of Sales 154 Computing Cost of Food Sold 154 Computing Cost of Beverage Sold 157 Computing Costs with Transfers 158 Utilizing the Cost of Sales Formula 160 Reducing the Cost of Sales Percentage 175 Chapter 6: Managing Food and Beverage Pricing 197 Menu Formats 198 Menu Specials 202 Factors Affecting Menu Pricing 203 Assigning Menu Prices 211 Special Pricing Situations 215 Chapter 7: Managing the Cost of Labor 234 Labor Expense in the Hospitality Industry 235 Evaluating Labor Productivity 238 Maintaining a Productive Workforce 239 Measuring Current Labor Productivity 255 Managing Payroll Costs 267 Reducing Labor-Related Costs 277 Chapter 8: Controlling Other Expenses 289 Other Expenses 290 Controllable and Non-controllable Other Expenses 290 Fixed, Variable, and Mixed Other Expenses 293 Monitoring Other Expenses 296 Managing Other Expenses 299 Chapter 9: Analyzing Results Using the Income Statement 315 Introduction to Financial Analysis 316 Uniform System of Accounts 317 Income Statement (USAR format) 318 Analysis of Sales/Volume 323 Analysis of Food Expense 326 Analysis of Beverage Expense 329 Analysis of Labor Expense 331 Analysis of Other Expenses 333 Analysis of Profits 334 Chapter 10: Planning for Profit 349 Financial Analysis and Profit Planning 350 Menu Analysis 350 Cost/Volume/Profit Analysis 364 The Budget 371 Developing the Budget 374 Monitoring the Budget 379 Chapter 11: Maintaining and Improving the Revenue Control System 399 Revenue Security 400 External Threats to Revenue Security 401 Internal Threats to Revenue Security 406 Developing the Revenue Security System 410 The Complete Revenue Security System 417 Glossary 426 Index 434
