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
- Managing Revenue and Expense
- Creating Sales Forecasts
- Purchasing and Receiving
- Managing Inventory and Production
- Monitoring Food and Beverage Product Costs
- Managing Food and Beverage Pricing
- Managing the Cost of Labor
- Controlling Other Expenses
- Analyzing Results Using the Income Statement
- Planning for Profit
- Maintaining and Improving the Revenue Control System
- Cost/Volume/Profit Analysis
- Menu Analysis
- 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 proportioned 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.
Assessment and Requirements
- Class Attendance and Participation (15 sessions x 5 pts) 75 points
- Homework Assignments: (25 pts x 11) 275 Points
- Chapter Tests (5 x 60pts each): 300 points
- Physical inventory assignment: 50 points
- Final Exam: 100 points
Total Possible Grade Points: 800
• 90% - 100% A
• 80% - 89% B
• 70% - 79% C
• 60% - 69% D
• 0% - 59% E
Food and Beverage Cost Controls and Study Guide by Lea R. Dopson (Author), David K. Hayes (Author) with Wiley Plus on-line component access.