# Controlling Food Cost in Service and Sales

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Controlling Food Cost in Service and Sales
8 Controlling Foodservice Costs OH 8-1

Chapter Learning Objectives
Explain the importance of portion control to food cost. Describe the various portion control devices and their uses. Explain the importance of training, monitoring, and follow-through in portion control. Compare the duplicate guest-check system to the point-of-sale (POS) control system for controlling the receipt of money. Instructor’s Notes Indicate that these objectives (competencies) drive the information in the chapter and in this session.

Chapter Learning Objectives continued
List the benefits of each payment method used by the restaurant and foodservice industry. Describe cash handling procedures used in operations. Complete a daily sales report. Instructor’s Notes Indicate that these objectives (competencies) drive the information in the chapter and in this session.

The Major Cost Control Device in Serving
Portion Control! Overportioning results in the restaurant’s owners being treated unfairly. Underportioning results in the restaurant’s guests being treated unfairly. Instructor’s Notes Explain that another problem related to portion control is the guest’s perception of consistency (large servings sometimes, but smaller servings another time). Ask students if they have ever ordered a menu item the first time, liked it, and returned to buy it again only to find the portion served the second time was a different size.

The Cost of Overportioning
Item: Corn Cost = \$2.80 per 3 lb box Portions per Box Portion Size in Ounces Portion Cost in Cents 16 3.0 oz = the standard \$0.175 If 14 3.4 oz \$0.20 If 13 3.7 oz \$0.215 Instructor’s Notes Point out that small amounts of overportioning can add up quickly. Explain that, with a 3-ounce standard portion size that should cost \$0.175 (17.5 cents), overportioning just 0.7 ounces per serving (13 servings example) raises food cost by 23%. (\$ \$0.175) ÷ \$0.175 = 23%.

2 oz hot dogs Precut steaks Rib “slabs” Half-pound frozen hamburger patties Bananas Carton or bottled beverages Instructor’s Notes Explain that, when an item is not preportioned, managers must ensure that guests get what they pay for while the restaurant protects its profits. Both of these goals are accomplished through proper portion control. Ask, “Who does the majority of portioning, cooks or servers?” Ask for examples of when servers play a major role in portion control.

Items Not Preportioned
Items that are not preportioned must be carefully portioned. To control costs To ensure consistency To ensure a positive price-value relationship in each guest’s mind To avoid running out of a product Instructor’s Notes Ask students to identify some tools used in a kitchen to help in the portioning process.

Portion Control Tools Scoops Also known as dishers
Used to portion fluid ounces and semisolid products Instructor’s Notes Point out that scoops are used for foods like cottage cheese, ice cream, and tuna salad. Explain that these devices are based upon the number of level servings per quart (32 ounces). Therefore, a “Number 10 scoop,” means it will yield ten-3.2 ounce servings (scoops) per quart. Point out that ladles are used for liquids such as soups, sauces, and dressings. Tell students that the capacity of a ladle is usually stamped on the handle.

Portion Control Tools continued
Ladles Used to portion liquids Instructor’s Notes Point out that ladles are used for liquids such as soups, sauces, and dressings. Tell students that the capacity of a ladle is usually stamped on the handle or that the handle might be color-coded to designate size.

Portion Control Tools continued
Serving spoons Slotted—used to separate solids from liquids Solid—used to serve solids and liquids Instructor’s Notes Point out that a slightly rounded serving spoonful is about four ounces of product.

Portion Control Dishware
Ramekins Used for small amounts of sauces and salad dressings Individual casseroles Typically round or oval oven-proof dishes Range in size from five to twelve ounces Instructor’s Notes Point out that ramekins may be made of stainless steel, ceramics, or disposable plastics. Ask students how they have seen ramekins used. Individual casseroles are often used for broiled items because these dishes can tolerate high heat levels.

Portion Control Dishware continued
Cups Typically hold four to six ounces Bowls Typically hold six to ten ounces Instructor’s Notes Point out a regular “coffee” cup holds a different amount (usually two to three ounces less) than an eight-ounce measuring cup.

Portion Scales Are used for items portioned by weight
Must be kept very clean Can be adjusted to subtract the weight of the container holding the product Are designed to weigh items as heavy as thirty- two ounces Instructor’s Notes Ask students to identify some items that are portioned on scales. Answers will include meats, fish portions, cold cuts, and cheeses. Point out that “tare” weight is the weight of the container holding the item. This tare weight is subtracted to arrive at the item’s actual or net weight.

Preportioning Preportioning items prior to the start of a meal period
Ensures consistency Reduces errors in portion sizes Speeds production times Instructor’s Notes Ask students to describe their experiences at a “Subway” type of sandwich shop to emphasize the importance to line speed of preportioning items such as cold cuts and cheeses. Mention that for some foods, preportioning may not be practical. Examples include soups and other hot or very cold liquid items.

Portion Control Training
All food production and service employees require portion-control training. Training must be ongoing. Service personnel must be continually reminded of proper portion sizes. Instructor’s Notes Explain that servers sometimes are “pressured” by some guests to increase portions sizes. Servers, anxious to protect or increase their tips, may do so. Ask students, “What can managers do to ensure that servers do not change portion sizes while, at the same time, ensuring high levels of guest satisfaction?”

Portion Control Training continued
Servers must be very knowledgeable about portion sizes if they are to consistently satisfy their guests. Instructor’s Notes Explain that well-trained servers can note portioning mistakes made in the kitchen that could lead to dissatisfaction among guests.

Monitor and follow through Visually inspect served food items as frequently as possible. Regularly check the sizes of scoops and ladles used for portioning. Ensure proper plate presentation. Portion size Item placement Garnish Instructor’s Notes One of a manager’s most important tasks is to continually monitor food production. Ask students where they would want their managers to be during a “rush” in a restaurant they themselves owned.

Portioning Reports Usage reports tell Waste reports tell
The number of items issued to the cook’s line The number of items sold to guests The number of items returned to inventory Waste reports tell The items returned by guests The reasons for their return Instructor’s Notes Remind students that waste reports were discussed in the previous chapter. Ensure that students know the differences between these two reports. Ask which of these two reports is most critical to the operation.

Duplicate Guest Check System
Step 1 – Assign guest checks. Assigned at beginning of each shift Each server receives a specific allotment of guest checks. Guest checks are prenumbered. The checks are two-copy—writing on one copy imprints the same information on the second copy. Instructor’s Notes Explain that most restaurants use either a duplicate guest check or point-of-sale (POS) system to control the revenue collection process. Each will be examined in this session. Indicate that servers must carefully protect their guest checks during the service period as they will be held accountable for them at the end of their shift.

Duplicate Guest Check System continued
Step 2 – Server writes the order. This copies the order onto the second (duplicate) copy of the check. Step 3 – Second copy goes to kitchen. The kitchen keeps this copy of the check after filling the order. Instructor’s Notes Explain that, with this system, no food should ever be issued from the kitchen without an order written on one of the prenumbered guest checks.

Duplicate Guest Check System continued
Step 4 – The guest is given the original copy of the guest check as confirmation of the order and as the bill to pay. Step 5 – Guest pays the bill. Typically, the guest pays either the server or a cashier. Instructor’s Notes Ask students which system (pay server or pay cashier) they prefer when they are dining out. Ask why they feel as they do.

Duplicate Guest Check System continued
Step 6 – At shift’s end, the server returns used and unused checks and all checks are accounted for. Step 7 – Managers collect duplicate checks from the kitchen. Line cooks must safeguard all check duplicates (copies). Instructor’s Notes Ask what would happen if a cook, after filling the order, intentionally or unintentionally destroyed a check duplicate in the kitchen.

Duplicate Guest Check System continued
Step 8 – Manager or bookkeeper matches originals with duplicates. Some restaurants Charge servers for missing checks. Discipline servers for missing checks. Terminate servers for missing checks. Instructor’s Notes Remind students that restaurants are not allowed to charge servers for missing checks in an amount that would reduce their pay below that of the prevailing minimum wage. Ask, “What should happen to a server whose guest has ‘walked’ or ‘skipped’ their check when the server was preoccupied with other guests?”

POS Systems Cashiers and servers are assigned individual codes.
Servers enter orders that are automatically displayed or printed in the kitchen. Instructor’s Notes Point out that servers should never share their assigned POS code information.

POS Systems continued Upon guest request, the server prints the bill.
The guest and restaurant retain one copy of the bill. Information about check totals are printed or read at the end of each shift. Instructor’s Notes Ask students which system they prefer—duplicate guest check system or POS system. Ask students to explain their selection.

Payment Methods Cash Credit cards Debit cards Travelers’ checks
Personal checks Other House accounts Manager’s accounts Comps Instructor’s Notes Explain that credit card companies charge restaurants a portion of the sale amount to process each guest’s payment. Explain that, unlike a credit card, when guests pay with a debit card, the guest’s bank account is immediately accessed, and the funds are removed from it. Point out that many restaurants no longer accept personal checks because of their difficulty in collecting on NSF (Not Sufficient Funds) checks.

Cash Handling Procedures
Before the shift Managers issue precounted bank to cashiers. Cashiers count banks to verify amount. During the shift All cashiers secure cash banks during their shifts. Cashiers collect cash, checks, and charge slips from guests. Instructor’s Notes Ask, “Why does the cashier count the bank before the shift?” Ask, “What are some ways in which cashiers secure their banks during the shift?” Point out that there are also cash handling procedures to follow at the end of the shift. These are discussed on the next slide.

Cash Handling Procedures continued
At the end of the shift Manager takes cash register readings. Cashiers count drawers and deduct the amount of the starting bank. Cashiers report cash on hand on a “Cash Report.” Managers prepare a “Daily Sales” report based on totals from the cashiers’ reports and cash register readings. Instructor’s Notes Note that a “Cash Report” details the currency and coins taken in by the cashier, and its total should be verified by a second person. Explain that the Daily Sales report is a summary of the individual cash reports and is typically prepared by a manager.

Daily Sales Report Instructor’s Notes
Point out that the Daily Sales Report has a place to enter “overs” and “shorts.” This is the “difference” entry (\$2.44) in Figure 8i. Ask about reasons that a cashier could legitimately be “over” or “short” during a shift. Ask students to share their own experiences about managers’ reactions and policies about “overs” and “shorts” where they work (have worked).

How Would You Answer the Following Questions?
Information about a guest’s meal that was returned to the kitchen by the guest because it was below the restaurant’s standard would be found on the (product usage/waste) report. The acceptance of personal checks by restaurants is (increasing/decreasing). The weight of a single portion produced when using a number 8 scoop is 8 ounces 4 ounces 2.5 ounces 0.25 (or 1/4) ounce A Daily Sales Report should be completed by (cashiers/managers). Instructor’s Notes Answers Waste Decreasing B Managers Note: indicate that the last part of this discussion will provide a review of definitions for the key terms used in the chapter.

Key Term Review Bank Cash handling procedure Cash report Credit card
Daily sales report Debit card Duplicate guest- check system Instructor’s Notes Bank—specific amount of coins and currency sufficient to make change for guests Cash handling procedure—activities followed to ensure that all cash and charge transactions are accurate and accounted for Cash report—form filled out by cashiers to report all money, checks, and charge slips collected during a shift Credit card—form of payment that obligates users to pay the credit card company for the products and services charged to the card Daily sales report—form that shows sales, cash, and charges collected as well as any shift overages or shortages Debit card—form of payment that when used, the amount charged is immediately withdrawn from the cardholder’s bank account Duplicate guest-check system—control procedure that uses a two-copy written record of guests’ purchases and charges

Key Term Review continued
Plate presentation Point-of-sale (POS) control system Portion control Portion control device Preportioned item Product usage report Instructor’s Notes Plate presentation—how an item will look to the guest when it is served Point-of-sale (POS) control system—computerized cash and product sales management system Portion control—ensuring the service of a proper portion as determined by the standardized recipe or the company standard Portion control device—implement that assists with the proper portioning of food items Preportioned item—food that is measured or weighed prior to being placed on the service line Product usage report—form that shows the number of items issued to the cook’s line, the number returned to inventory, and the number sold to guests

Chapter Learning Objectives— What Did You Learn?
Explain the importance of portion control to food cost. Describe the various portion control devices and their uses. Explain the importance of training, monitoring, and follow-through in portion control. Compare the duplicate guest-check system to the POS control system for controlling the receipt of money. Instructor’s Notes Ask students to do a personal assessment of the extent to which they know the information or can perform the activity noted in each objective.

Chapter Learning Objectives— What Did You Learn? continued
List the benefits of each payment method used by the restaurants and foodservice industry. Describe cash handling procedures used in operations. Complete a daily sales report. Instructor’s Notes Ask students to do a personal assessment of the extent to which they know the information or can perform the activity noted in each objective.