Emphasizes cost calculations of food, wine, spirits, supplies, and labor in order to understand a profit and loss statement. Presents the forecasting, production planning, inventory, and ordering cycle with the aid of MS Excel and web-based ordering systems. Also examines how buying decisions are made by utilizing calculations of yield and best value, along with government regulations and ethics.
Goals, Topics, and Objectives
- Cost and Sales Concepts
- Cost/Volume/Profit Relationships
- Portion Control, Costing, Quantities & Monitoring
- Purchasing: Manufacturers, Brokers & Distributors
- Food Storing & Transfers
- Actual vs Standard Food Cost
- Menu Engineering
- Controlling Food Sales
- Beverage Sales Control: Revenue Tracking
- Identification of Beers, Wines and Spirits
- Beverage Storage, Security and Transfers
- Labor Cost: Employee Compensation
- Beverage Production Control & Monitoring
- Establishing Performance Standards & Creating Structure
- List fixed costs.
- Explain how fixed costs are controlled.
- List variable costs.
- Explain how variable costs are controlled.
- Write a product specification.
- Compute the edible portion cost of a serving of food.
- Apply the formula necessary to decide whether to purchase convenience preportioned food, or to purchase raw ingredients and produce items from scratch.
- Describe and explain different grades when purchasing meat, seafood, produce and grocery items.
- Calculate check average.
- Prepare an income statement (P&L) for a business.*
- Identify information necessary to prepare various forecasts used in a food and beverage operation.
- Determine the amount of food that will be needed during the next order period by creating a forecast.*
- Calculate the selling price of menu items.*
- Calculate popularity index for menu items.
- Identify and discuss spirits and their relationship to food in a bar or restaurant.
- Identify and discuss types of beer and wine and their relationship to food in a bar or restaurant.
- Compute the popularity index for menu items to forecast portion sales.
- Calculate the standard cost of any drink, given a standard recipe and the current market price of ingredients.
- Calculate the standard cost-to-sales ratio for any drink, given it's standard cost and sales price.
- Identify and discuss the costs involved with theft.
- Identify and discuss the costs involved with waste.
- Discuss Michigan beer, wine and spirit laws.
- Discuss how alcoholic beverages are obtained through distribution in Michigan.
- List common vendor payment terms.
- Visit a vendor or trade show.
Assessment and Requirements
• Class Attendance and Participation (15 sessions x 2 pts): 30 points
• Yield Costing Assignment: 40 points
• Progress Chapter Tests (5 x 70 pts each): 350 points
• Physical Inventory Assignment: 40 points
• Attend a Trade Show or event: 40 points
• Create an Income (P&L) Statement: 50 points
• Final Exam: 80 points
Total Possible Grade Points: 630
• 90% - 100% A
• 80% - 89% B
• 70% - 79% C
• 60% - 69% D
• 0% - 59% E
Principles of Food, Beverage and Labor Cost Controls w/CD, by Paul Dittmer and J. Desmond Keefe III (Current Edition)